ECON 1120 Lecture 2: 8/27/15
27 Jun 2016
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Document Summary
Look at the world, hypothesize a model, analyze the model, use the model to make predictions and then see if the model holds up under empirical scrutiny. Economics: the study of the allocation of scarce resources to produce commodities to satisfy infinite human wants. Classic definition - economics is about constrained optimization. Macro-ish: china"s missteps tarnish a reputation for economic management . Micro-ish: justice department investigates possible collusion in us airline. Aggregate price level (consumer prices, producer prices, rate of inflation, interest rate) Understand how economists think and construct their arguments. Help differentiate from good and bad analysis. Cut away all the extraneous detail, keeping only what is relevant (but not too simple as to be useless) Not recognizing the fallacy of composition (what"s good for one is good for all) Raising minimum wage - many will lose jobs/hours cut.
