ECON 1BB3 Chapter Notes - Chapter 2: Swimming Pool, Scientific Method, January 8

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

Without abortion, unwanted babies were born and grew up to be criminal. Legalizing abortion prevented unwanted criminals from being born. Chapter 2 (1)why is econ difficult: express ideas in economics: Translate between each different form of communication. Example: people buy less coffee when the price of coffee rises. Q of c = 100-3p sub c (2)economics is a social science: social = people, science = use scientific method. If we are more efficient we can make a bigger pie (efficiency) efficient we are less equity, vice versa: communists is a perfect trade off in theory but incentive comes into play. Since everyone is getting the exact same as everyone else there is no incentive to work harder (vodka break) (5) positive vs normative analysis: positive: the world as it is , normative: the world as it should be . In order to do normative analysis you have to do a value judgement.