ECON 1100 1st Edition Lecture 3Outline of Last Lecture I. Positive StatementII. Normative StatementIII. MargialismIV. Absolute AdvantageV. Comparative AdvantageVI. ExampleOutline of Current Lecture I.Key for successII.ScarcityIII.Decision-makingIV.Supply & Demand exampleCurrent LectureI. Key for successSuccessful economy & production requiresTimeKnowledgeAbilityNatural resources: oil, minerals, sun, rain, wind, etc.Patience (Key)II. Scarcity3 main questions that need to be answeredWhat are we going to produceHow are we going to do itThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Who gets whatIII. Decision-makingThe majority of decisions are made w/o a plan, let the people decideMarket decides what to do next/what is going to happen according to what is going on at the timeGood or bad theory?Does it help to understand the outside worldPeople make decisions depending on the current situationIV. Supply & Demand exampleWhat you always need to know:WhereWhoWhenDemand – relationship between price of apples demanded in Iowa City in
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