ECON 2000 : Chapters 1 2 3 4 5 Notes (98% on the test)
Document Summary
The method of economics: positive economics: an approach to economics that seeks to understand behavior & the operations of systems w/o making judgments; describes what exists & how it works, describes what exists & how it works, no judgments/very technical, normative economics: an approach to economics that analyzes outcomes of economic behavior, evaluates them as good or bad, & may prescribe courses of action. (also called policy economics) If the system allocates resources to the production of goods & services that nobody wants, it is inefficient: at least potentially, the resources saved could be used to produce more of something, equity: fairness, economic growth: an increase in the total output of an economy, when we devise new & better ways of producing the goods & services we use now & when we develop new goods & services, the total amount of production in the economy increases.
