ECON 1011 Lecture Notes - Lecture 3: Marginal Utility

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24 Sep 2018
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Deductive reasoning- if x, then y. assumptions leading to conclusions. You take a set of assumptions and principles that you believe to be true and valid and you take the conclusions that are likely to be true based on your assumptions. If we observe y then x could explain it. y=observations, x=explanations. Induction starts with observations of the world around us, measuring and observing the world (looking at results and conclusions of economic activities), then observing why, figuring out why this data is apparent to the real world. We can infer what some of the symbols mean. The purpose of the map is to show the individual how to get out of town. If you drive car along streets with arrows, you will get on the road to indianapolis. Right on henderson, etc etc, and you"ll be able to find some coffee. Motivation for assumptions (two different types of assumptions) Reflect reality- some aspect of world that seems important.