(Transaction Costs Example 1: Medical Billing and Administration)
Authors: Goodwin, Neva; Nelson, Julie; Ackerman, Frank; Weisskopf, Thomas
Source: Global Development And Environment Institute, Tufts University
This module draws on the first two chapters of Microeconomics in Context to present the study of economics in a broad social and environmental context. The traditional economic goal of efficiency is presented as an intermediate goal in the pursuit of a final goal of well-being. The module introduces the issues of externalities and transactions costs, and, crucially, adds the activity of “resource maintenance” to the usual discussion of the activities of production, distribution, and consumption. Finally, the module updates the standard treatment of economic agents by drawing on recent research on motivations and behavior. The student reading consists of 25 pages which includes discussion questions, review questions, and exercises. Instructor notes are also included for teachers.