ECON 2000 : Economics Exam 1 Notes
Document Summary
Individual- should i have one more beer? (however beer may affect rationality is the way to answer your question: efficient markets, market clearing. Unbelievable opportunities are rare: usually should be believed, terminology note- no free lunch , more often introduced with opportunity cost , to understand society & history, to be an informed citizen such as for voting. Economic agents : those who make economic decisions in the market place. Individuals and corporations: microeconomics- the functioning of individual industries & the behavior of individual decision-making units-- that is, firms & households, looks at the individual unit the household, the firm, the industry. Sees & analyzes the forest : positive economics- an approach to economics that seeks to understand behavior and the operation of systems without making judgments. It describes what exists & how it works: normative economics- an approach to economics that analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe courses of action.
