ECON 1BB3 Chapter Notes - Chapter 2: Scientific Method, Microeconomics, Opportunity Cost
6 Apr 2014
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ECON 1BB3 Full Course Notes
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Brief outline of lecture notes for chap 2 and practice questions. Learning objectives: consider how assumptions and models can shed light on the world, learn two simple models the circular flow and the production possibilities frontier (ppf), distinguish between microeconomics and macroeconomics. For notes on graph please refer to appendix section of the. Every field of study has its own terminology. Economics: supply c opportunity cost c elasticity c consumer surplus c demand c comparative advantage c deadweight loss. Evaluate the cost of individual and social choices. Examine and understand how certain events and issues are related. Economists make assumptions in order to make the world easier to understand. The art in scientific thinking is deciding which assumptions to make. Economists use different assumptions to answer different questions. Economists use models to simplify reality in order to improve our understanding of the world. Two of the most basic economic models include:
