Class Notes (1,100,000)
CA (650,000)
Western (60,000)
ECON (1,000)
Lecture 2

# Economics 1021A/B Lecture Notes - Lecture 2: Technological Change, Demand Curve, Comparative Advantage

Department
Economics
Course Code
ECON 1021A/B
Professor
Michael Parkin
Lecture
2

This preview shows half of the first page. to view the full 3 pages of the document.
Econ 1021A, Lecture 2, Wednesday, September 23, 2015
Using Graphs, The Economic Problem, How Prices and Quantities are Determined (Demand and Supply)
Economic Thinking
â€¢Expenditure, Income and the value of production
â€¢Living standards and productivity growth
â€¢Inflation: a money problem
â€¢Unemployment: Productive and wasteful
What Economists Do
â€¢Normative statements
â€“What should be
â€“opinion
â€¢Positive statements
â€“What is
â€“Can be proven true or false
We will be focusing only on positive statements
â€¢Observation and measurement
â€¢Model building
â€“Ceteris paribus â€“ other things being equal
â€¢Testing models
Graphing Data
â€¢Graphs represent a quantity as a distance on a line.
â€¢The x-axis runs horizontally.
â€¢The y-axis runs vertically.
â€¢The origin is their intersection.
â€¢Points can be identified by a pair of coordinates.
â€¢Points show relationships between 2 quantitative variables.
Four Patterns to Watch For:
â€“Variables that move in the same direction. (Positive relationship) x and y
move positively at the same time
â€“Variables that move in opposite directions. (Negative relationship) as x
and y move in opposite directions
â€“Variables that have a maximum or a minimum. (parabolas)
â€“Variables that are unrelated. (we donâ€™t care about these)
Calculate the slope of a line