Class Notes (836,583)
Canada (509,859)
Economics (1,617)
ECON 1BB3 (535)

1BB3 JAN 7th

3 Pages
Unlock Document

Bridget O' Shaughnessy

Day 1 Notes: Monday January 7 , 2013 th 10 Principles of Economics: HOW PEOPLE MAKE DECISIONS 1. People face tradeoffs 2. The cost of something is what you give up to get it (Opportunity cost) 3. Rational people think at the margin (Cost/benefit, forward-looking) 4. People respond to incentives (Change behavior) 5. Trade can make everyone better off 6. Markets tend to increase efficiency (Efficiency: How much stuff can we make?) 7. Sometimes the government can eliminate market inefficiencies 8. A country’s standard of living depends on its productivity 9. Prices increase when the government prints too much money 10.There is a short-run tradeoff between inflation and unemployment th Day 2 Notes: Tuesday January 8 , 2013 What is more dangerous, a gun or a swimming pool? 1. Why is economics difficult? -Express ideas in economics a) English language (Ex. People buy less coffee when the price rises) b) Algebra / equations (Ex. Quantity Demanded = 100 – 0.30 Pc) c) Diagram / graph -Translate between each different form of communication 2. Economics is a social science -Social = people -Science = use scientific method -> Observe -> Theorize -> Test Theory (Repeat Theorize for new results) 3. Microeconomics versus Macroeconomics Microeconomics: individual households and firms and how they interact Macroeconomics: Economy-wide phenomena such as interest rates, unemployment, money, and growth 4. Efficiency ve
More Less

Related notes for ECON 1BB3

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.