ECON 212 Lecture Notes - Lecture 9: Exogeny, Equation, Comparative Statics

• School: Queen's University
• Department: Economics
• Course: ECON 212
• Professor: Ian James Cromb

Document Summary

Economics: deals with allocation of limited resources to satisfy unlimited human wants: resources are scarce since they are limited making us constrained in our choices, the science of constrained choice . Micro therefore studies the economic behaviour of individual economic decision makers (consumers, worker, firm, etc. ) and analyzes the behaviour of individual households, industries, markets, labour unions or trade associations. Macro analyzes how an entire national economy performs. North america/western europe relied on a mostly decentralized market system to allocate resources. Micro analysis also provides the foundation for examining the role of the government in the economy and the effects of government actions. Given the exogenous variables, your model will describe the relationship between the distance the ball will drop and the time elapsed after it is released. 1. constrained optimization: equilibrium analysis, comparative statics, constrained optimization. Economics usually state a constrained optimization problem like: maxlw (l,w)