Recitation 9/21/11

• Recap: comparative advantage=competitive advantage=specialization
• Facts help us decide how much of a resource is needed
• People know economics;they just don't know the right stuff
• Ideas are usually held by people who are not affected by what the idea's about because there's no cost to them
• What is done depends on the concepts and view of the people in question
• When we put a price floor, companies need to pay their employees more money
• With minimum wage comes high cost which is not necessarily a good thing
• High cost leads to unemployment
• Feedback Loop- consumers can trust companies because they need to provide the consumer service to ensure the possibility of their coming back
• Minimum Wage causes:
• Unemployment
• Worse Working Conditions
• Less Benefits