Class Notes (839,398)
Canada (511,327)
Economics (994)
ECON 102 (216)
Lecture

2. Thinking like an economist.docx

2 Pages
59 Views

Department
Economics
Course Code
ECON 102
Professor
Maryann Vaughan

This preview shows 80% of the first page. Sign up to view the full 2 pages of the document.
Description
Thinking like an economist January-09-13 2:30 PM Economists: 1. Scientists: explain the world 2. Policy advisors: try to improve it Scientific method - the dispassionate development and testing of theories about how the world works. Assumptions and Models  Assumptions simplify the complex world  Model: a simplified representation of the real world. Used to study economic issues The Circular-Flow Diagram  A visual model of the economy, showing how the dollars flow through markets among markets and firms  2 actors: o Households o Firms  2 markets o Market for goods/services o Market for factors of production  Resources used to produce goods and services  Land  Labour  Capital  Entrepreneurship Production Possibilities Frontier  Shows all the possible combinations that the economy can possibly produce goven the availabel resources and the available technology  2 goods  Reaources and tech are fixed Shape of the PPF  Could be a straight line or bow-shaped  Depends on what happens to opportunity cost as economy shifts resources from one indus
More Less
Unlock Document

Only 80% of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


OR

Join OneClass

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

Sign up

Join to view


OR

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.


Submit