Class Notes (835,581)
Canada (509,259)
Economics (472)
ECON 102 (134)
Lecture

01.07 - Intro to Economics.docx

2 Pages
85 Views
Unlock Document

Department
Economics
Course
ECON 102
Professor
Lanny Zrill
Semester
Winter

Description
Intro to Economics 01-07-2013 What is economics?  The study of the use of scarce resources to satisfy unlimited human wants  Preferred definition: a way of thinking about all human behavior  Application: how interest rates are determined by the Bank of Canada, the causes of unemployment, financial markets, etc. Big Ideas  What is the appropriate distribution of income and wealth in society?  How can we manage our scarce resources and the environment?  Should there exist institutions to help those in need? Positive vs. Normative Issues Positive statements – statements of fact o When interests rates go up, people save more o Can be evaluated by appeal to facts Normative statements – value judgments o Tax revenue should be used to develop programs and institutions to help those in need  Cannot be settled by appeal to facts … arguments persist forever What is the Economy?  An inconceivably complex system of interactions between individuals for the purpose of exchanging commodities Two Questions  How is such a complex system organized and by whom? o No one. Economic transactions are the result of mutually beneficial and voluntary exchanges between individual entities (persons, firms, the government) o These uncoordinated interactions are remarkably effective at facilitating the exchange of goods and services (the invisible hand, Adam Smith) o Yet the economy is not an unregulated free-for-all (ie. Hobbes’ State of Nature)  How are we supposed to make any sense out of something so complicated? Basic Functions of the Government (to regulate economic transactions)  Rule of Law and Enforcement of Property Rights  Provision of Public Goods (ex. pub
More Less

Related notes for ECON 102

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