01:220:103 Chapter Notes - Chapter 1: Efficient-Market Hypothesis, Marginal Cost, Opportunity Cost
15 Feb 2018
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Chapter 1: the scope and method of economics. Economics: the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. It is the study of how people make choices. It teaches us a way of thinking and helps us make decisions and helps us to understand society better. But everyone thinks this way- as is likely- all the lines will be equally long as people move around. Economists loosely refer to good deals or risk-free ventures as profit opportunities. Markets like these, are said to be efficient markets since profit opportunities are eliminated almost instantaneously: in general, profit opportunities are rare but they do exist. They are powerful in helping to guide decision making: the better way to phrase efficient market- no such thing as a free lunch. Discipline of economics began to take shape during this period. Societal changes are often driven by economics.
