ECON 101- Final Exam Guide - Comprehensive Notes for the exam ( 34 pages long!)
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ECON101 Full Course Notes
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Economics is the social science that studies choices that individuals, businesses, government, and entire societies make as they cope with scarcity and incentives that influence and reconcile those choices. Our resources are scarce in relation to wants. Any choices are influence by incentives (reward or a punishment) (induces rational individuals to act in a certain way) Social science that studies behaviour in terms of scarcity: distinguishes between positive and normative statements. Normative statements being about what ought to be : more of an opinion, not necessarily testable, economists do not often agree upon to test economic models, economists leverage, natural experiments situation that arises in ordinary life (ex. Regression analysis correlation between 2 variables: economic experiments individuals are placed in decision making situations while varying factors of interest in order to measure a response. Self-interest being choices that individuals believe are best for them. Social interest being choices that is best for society as a whole.
