ECON 101 Lecture Notes - Lecture 1: Opportunity Cost, Making Money
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ECON 101 Full Course Notes
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Economics - study of allocation of scarce resources over competing and alternative uses: allocation - what we choose to use resources for. Who gets what: scarce not enough to go around, resources land, labor, capital, time. Implies some sort of rationing must occur: competing and alternative uses [for the resources] There are always choices to make: if no choices then no need for. Microecon economics: focusses on the ind, ind markets, ind decision makers (firms and consumers, fields: labor, health, public, finance, natural resource, environ, industrial, organization, international trade. Positive econ: describes way the economy actually works. Normative econ: makes prescriptions about the way the economy should work. Value judgements public policy: claim: capital punishment reduces crime. Positive econ statement: claim: capital punishment should be imposed for certain crimes. Normative econ statement: claim: the price of gas is too high. Normative: claim: in real terms, the price of gas is higher today than 20 years ago.
