Chapter 1.docx

1 Page
49 Views
Unlock Document

Department
Economics
Course
ECONOM 1051
Professor
George
Semester
Fall

Description
Econ 1051­ Chapter 1 I. Economics A. What is economics­ science of choice. How do entities make beneficial  financial decisions, important because conditions of scarcity B. How do we study? With economic models and theories (like trade models) 1. behavioral assumptions made to guess about the motives of consumers  and firms 2. normative analysis­ concerned with “what ought to be” 3. positive analysis­ concerned with “what is” C. Importance of market (group of buyers and sellers of a good or service  come to institution [virtual or otherwise] to trade) D. Microeconomics v. Macroeconomics 1. micro­ study of how households and firms make choices, react to  market, respond to incentives and government influence 2. macro­study of economy as a whole (inflation, unemployment,  economic growth) II. Three Key Economic Ideas A. people are rational (given the information they have at the time) B. people respond to incentives C. optimal decisions are made at the margin a. marginal analysis= analysis involving whether marginal costs of  purchase or selling exceed marginal benefit
More Less

Related notes for ECONOM 1051

Log In


OR

Join OneClass

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

Sign up

Join to view


OR

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.


Submit