Econ 103 Chapter 1 notes
-Economics = a particular way of thinking about behaviour
-Economic thinking is constrained by a number of explicit assumptions, known now as
-When you put these principles together, they form a basic economic model.
-Everyone uses "models" to function in life.
-Often graphs for economists
-Models should have these characteristics:
-Honest assumptions, so that we have a better idea about where our
model needs fixing when it fails to explain some behaviour
-May make unrealistic assumptions, but that can lead to true
conclusions (in this book most assumptions are true)
-A model that is capable of being shown wrong
-Other things being equal, a model should be simple and easy to
-Consistent with the general facts of the world
-Economics use the scientific method, as well as faith.