Study Guides (238,094)
Canada (114,915)
Economics (335)

ECON 2150 – CHAP 1.docx

1 Page
Unlock Document

Western University
Economics 2150A/B
Irene Trela

ECON 2150 – CHAP 1 1.1– Why study econ?  Science of constrained choice   need to sacrifice one thing for more of another 1.2Three key analytical tools  Exogenous variable  value is taken as given in analysis of econ system   determined outside of the model  fixed variable  cannot control  Endogenous variable -> value determined within econ system being studied   result is variable  model affects variable  dependent Constrained optimization   used when decision maker seeks to make best choice, taking into account any possible limitations or restrictions on choices  2 parts  objective function and set of constraints  objective function  relationship that decision maker seeks to optimize (maximize or minimize)  constraints  restrictions or limits on decision maker  eg. try to maximize area (objective function) under certain limit (constraint)  max subject to: total =/> restriction  solution to constrained opt prom  marginal impact of decision variables on value of
More Less

Related notes for Economics 2150A/B

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.