ECON 201 Lecture Notes - Lecture 2: Fallacy, Macroeconomics, Externality
1 Nov 2018
School
Department
Course
Professor
Document Summary
A lot of data in the science of economics is observational and more difficult to conduct experiments. Build a model (a system of mathematical equations) Forecasting is a type of prediction that involves looking into future trends. Look at real world data and compare to what your model generates. Logical fallacies that can leads to wrong outcomes. Just because something is good/works for a small scale version (one person) you cant assume that it is good for a larger scale (many people) Example: if a farmer grows a big crop it will sell at a high rate for him but if every farmer grows a big crop then the price of sales would drop because there is such a surplus amount. You cant assume just because one thing happens chronologically after another that the two events are related. What will the producing process need to make it (what recourses? will it cause pollution will it be clean?)
