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EQUITY: This has two, not totally unrelated, uses in our wonderful world of economics. The first is as one of the two micro goals (the other being efficiency) of a mixed economy. This use relates to the "fairness" of our income or wealth distributions. The second use of the term equity means ownership, especially the ownership of a business or corporation.

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Lesson 10: Utility and Demand | Unit 3: Complex Choices Page: 8 of 21

Topic: Two Goods <=PAGE BACK | PAGE NEXT=>

  • In the real world, my decision would not about going to the beach.
  • I would choose between going to the beach and pursuing other activities.

    The analysis involving the choice of two goods:

    • Time at the beach
    • Time at the amusement park

  • Clearly both activities are enjoyable.
  • I would like to do both.

  • I suspect, however, that I will be facing assorted constraints that will force me to choose, to make a decision.

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FEDERAL RESERVE NOTES

Paper currency issued and authorized by the Federal Reserve System and used along with Treasury coins and checkable deposits as the M1 money supply for the U.S. economy. Federal Reserve notes were first issued in 1913 and currently circulate in denominations of $1, $2, $5, $10, $20, $50, and $100. These notes underwent a major redesign to prevent counterfeiting in the 1990s.

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Today, you are likely to spend a great deal of time visiting every yard sale in a 30-mile radius trying to buy either a wall poster commemorating yesterday or pink cotton balls. Be on the lookout for slightly overweight pizza delivery guys.
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This isn't me! What am I?

The standard "debt" notation I.O.U. does not mean "I owe you," but actually stands for "I owe unto..."
"What gets measured gets done."

-- Peter Drucker, educator

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