ECN 340 Lecture Notes - Lecture 1: Opportunity Cost, Rationality, Greedy Reductionism
19 Apr 2018
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Document Summary
Chapter 1 the economics of human behaviour. 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 of (a) unlimited desires, and (b) limited resources to satisfy those desires. Unlimited desires include both material and non-material wants: love, health, friendships, sex, vacations, good looks (thus plastic surgery), length of life, etc. , etc. There 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 for those that don"t have in an effort to maximum satisfaction. Economists use the amoral approach to analyzing issues and problems facing human beings. The amoral approach is devoid of our own values. The economists tries to understand the behaviour of others given their own values.
