ECON BC 2075y Lecture Notes - Lecture 2: Invisible Hand, Expected Utility Hypothesis, Ceteris Paribus
13 Sep 2016
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Rationality, utility theory and expected utility theory in positive and normative. All economics is normative economics (she believes this and will defend it) Hw 1 is posted, due sept 20 on courseworks. All extra credit on tests come from readings, so keep up w/ them. Positive economics is actually a subset of normative economics. Showed vid from bloomberg politics- how the dems & repub races are shaping up in. Trump v clinton v sanders (strange match up) Utility theory we have preferences & unlimited wants, but there"s something that outs a limit on our action of unlimited wants (budget constraint ex) Theory of revealed preferences people have particular set of preferences based on their actions/choice. All else remaining equal assumption working in the background (ceteris paribus) When 2 ppl are being compared there is no scale. 2 requirements for choice to be rational. Never ending loop-> makes her a sucker.
