SOCIAL CONTRACT: How we live together. A set of institutions formal and informal which we use in order to live together. FORMAL: police, fire dept., traffic lights. INFORMAL: drug dealers. 1066 was the most important year because the Normas invaded England at the battle of Hastings against the Angle Saxtons. This began the Social Contract.

COMMAND VS MARKET ECONOMY: Command-one person or a set of persons(experts, highly trained, the elite) who will make informed and subtle decisions, or create systems that will. And so direct the economy, that is make the economic decisions. Market- each citizen gets and equal chance to vote (“the invisible hand”) with their participation in the market (that is when they purchase goods and/or sell their services). The sum of the individual votes answer the three economic questions. There is no debate over what is valuable. We have all voted. BOOK- an economy that allocates resources primarily through the interaction of individua

10 yrs. ago Ideal form

LAW OF DEMAND: The claim, that other things equal, the quantity demanded of a good falls when the price of a good rises. The Demand Curve- Price Quantity

STOCK VARIABLES: balance sheet. Flow = time.

Market Economy Command Economy

Positive- Tells the cost/benefit

Some topics in this essay:
OPPORTUNITY SET, MARKET MODEL, ECONOMY Command-one, ABSOLUTE ADVANTAGE, PRICE TAKER, SOCIAL CONTRACT, Price Quantity, BUDGET CONSTRAINTS, , FACTOR PRODUCTION, market model, absolute advantage, pure competitive, reservation price, competitive market, competitive market model, buyers sellers, absolute advantage countries, market economy, price taker, opportunity cost, opportunity set, pure competitive market,