ECN 340 Lecture 1: ECN 340 WEEK 1
28 Feb 2018
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Document Summary
Economic approach 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 behavior. Arises because we have unlimited desires and limited resources to satisfy those desires (scarcity) (economic problem) Unlimited desires include both material and non-material wants: love, health, friendship, sex, vacations, good lucks (ex 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 ha(cid:448)e i(cid:374) a(cid:271)u(cid:374)da(cid:374)(cid:272)e for those that do(cid:374)(cid:859)t ha(cid:448)e i(cid:374) a(cid:374) effort (cid:373)a(cid:454)i(cid:373)ize satisfaction. Positive the analysis of facts to establish cause and effect relationships. Without value judgements: the temperature is 24 degrees-an assertion that can be tested. Normative the part of economics involving value judgements about what the economy should be like.
