ECN 340 Lecture Notes - Lecture 1: Marginal Cost, Demand Curve, Opportunity Cost

• School: Ryerson University
• Department: Economics
• Course: ECN 340
• Professor: Thomas Barbiero

Document Summary

A thought process or the unique manner in which we approach problems confronted by human beings. A mental skill that incorporates a special view of human behaviour. Arises because: unlimited desires, limited resources to satisfy those desires. Unlimited desires include both material and non-material wants (love health friendship etc. ) To satisfy their desires, people exchange goods and services; they exchange those things they. Limited resources to satisfy these wants ha(cid:448)e i(cid:374) a(cid:271)u(cid:374)da(cid:374)(cid:272)e for those the(cid:455) do(cid:374)(cid:859)t ha(cid:448)e i(cid:374) a(cid:374) effort to (cid:373)a(cid:454)i(cid:373)ize satisfa(cid:272)tio(cid:374) E(cid:272)o(cid:374)o(cid:373)ists use the (cid:858)a(cid:373)oral approa(cid:272)h(cid:859) to a(cid:374)al(cid:455)ze issues a(cid:374)d pro(cid:271)le(cid:373)s fa(cid:272)i(cid:374)g hu(cid:373)a(cid:374) (cid:271)ei(cid:374)gs. The (cid:858)a(cid:373)oral approa(cid:272)h(cid:859) is de(cid:448)oid of our o(cid:449)(cid:374) (cid:448)alues/judg(cid:373)e(cid:374)t. The economist tries to understand the behaviours of others given their own values. Positive economics: analysis of facts to establish cause and effect relationships, what is, without value judgements. Normative economics: the part of economics involving value judgements about what the economy should be like, what ought to be, an assertion that cannot be tested.