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Lectures Notes for MACRO1101
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ECON1401 Lecture NotesLecture 2:
Incentives:- Notion of making decisions “on the margin” in response to incentive is a way of capturing the way humans
decide how to allocate their resources when facing constrained (resource-scarce or feasible-action-scarce) scenarios.
- A reason to do something. - Can arise from markets (price, product types), groups (business rules, taxes), loyalties (allegiance to a
country)- Economics: Often a material reason or a preference related reason that can be monetized.
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