ECON 102 Chapter Notes - Chapter 1: Normative Economics, Trade Union, Human Behaviour
6 Feb 2018
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Ch 1 the principles and practices of economics. Including the argument and disagreements that led to the choice of the price. Economic reasoning so that you can compare the cost and benefits of the alternative options: make the choices that are the best for you. Economics: study of how agents choose to allocate scare resources, how those choices affect society. The effe(cid:272)ts of a(cid:374)y i(cid:374)di(cid:448)idual age(cid:374)t"s (cid:272)hoi(cid:272)es o(cid:374) so(cid:272)iety: ex, ale of (cid:374)e(cid:449) sport (cid:272)ars does(cid:374)"t just affe(cid:272)t perso(cid:374) the perso(cid:374) dri(cid:448)i(cid:374)g off the dealers lot, the sale generates sale tax which the gov uses to fund projects. Economist study the original choice and its multiple consequences for other people in the world. U(cid:374)dersta(cid:374)di(cid:374)g people"s (cid:272)hoi(cid:272)es is pra(cid:272)ti(cid:272)ally useful for 2 key reaso(cid:374)s, e(cid:272)o(cid:374)o(cid:373)i(cid:272) a(cid:374)alysis: describing what people actually do (positive, recommends what people, including society, ought to do (normative) Normative economics recommends what people ought to do.
