*Marginal analysis:
i. Cassie is an unselfish person” how you value, subjective notion.
What is the good？”
What does “unselfish” mean?
No specific characteristics of “unselfish”, all depends on the framework or line you draw for “unselfish.”
*Health care” NOMEANING
ii. Case, Rizzo has never say ”I love you’ to his wife. The marginal value of saying it is too high. Every time you say “I love you”, the marginal value of it decreases.
iii. Teachers(water) vs Athletes(diamond): total value and marginal value.
*Key Economic insight: Is not oil but what oil can do for you. Is not what the dengue killer but what they can do for you
iv. Sunk Costs(Value that cannot be changed no matter what you do.
* A sunk cost is a genuine cost made in the past.
*Human Acts with Purpose: When the benefit and cost of something changes, people’s behavior will change.
*”Law of intended Consequences”
The law of commanding seat belt changes the incentives to drivers. The cost of getting in an accident has fallen. People will drive higher. Then survey showed that more accidents occur (while baby cannot be protected), in fact we’re less safe.
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