ECN 340 Lecture Notes - Lecture 1: Demand Curve, Rationality, Marginal Utility
18 Apr 2016
School
Department
Course
Professor
Document Summary
A thought process or the unique manner in which we approach problems confronted by human beings. How we interact with each other in the social world. A mental skill that incorporates a special view of human behaviour. Arises because of (a) unlimited desires, and (b) limited resources to satisfy those desires. Unlimited desires include both material and non material wants: love, health, friendship, sex, Vacations, good looks ( this plastic surgery), length of life, etc These are limited resources to satisfy all these wants (including time) To satisfy their desires, people exchange goods and services: they exchange those things they have in abundance fro those they don"t have in an effort to max satisfaction. Economists use the amoral approach to analyzing issues and problems facing human beings. The amoral approach is devoid of our own values. The economist tries to understand the behaviour of others given their own values. The analysis of facts to establish cause-and-effect relationships.
