ECON 1BB3 Lecture Notes - Lecture 3: Coca-Cola Zero Sugar, Scientific Method, Value Judgment

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

What is more dangerous, a gun or a swimming pool?9/11/2012 7:34:00 am. Ex: when the price of coke zero goes up, people drink less coke zero. P(c) = price of coke zero , q(dc) = quantity of people buying coke zero. Theorize natural experiment designed for a purpose other than to collect data, but allows economist to observe and collect the data. Microeconomics: individual households and firms and how they interact. Macroeconomics: economy-wide phenomena such as interest rates, unemployment, money and growth. Efficiency is the size of the pie. Equity is how the pie is divided. Positive: an attempt to describe the world as it actually is . Normative: an attempt to describe the world as it should be . Don t look for should, it doesn t always indicate normative. A lot of economist thing that equity is better than efficiency. Stock = snapshot at a point in time. Flow = measured over a time period.