ECN 340- Final Exam Guide - Comprehensive Notes for the exam ( 42 pages long!)
29 Mar 2018
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Topic 1: the economic approach to human behaviour. A thought process, of the unique manner in which we approach problems confronted by human beings. A mental skill that incorporates a special view of human behaviour. Arises because of (a) unlimited desires, and (b) limited resources to satisfy those desires. Unlimited desires includes both material and non material wants: love, health, friendship, sex, vacations, good looks (thus plastic surgery), length of life, etc etc. There are limited resources to satisfy all these wants (including time) They exchange those things they have in abundance for those they don"t have and want to maximize satisfaction. Economists use the amoral approach to analyzing issues and problems facing human beings. The amoral approach is devoid of our own values. The economist tries to understand the behaviour of others given their own values. Economists use theory to explain the world around them.
