Scope and Method of Economics - Econ 4.3 Wednesday January...

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Econ 4.3 Wednesday January 13 1999 Announcements: Read Chapter 2 by Friday 1/15/98. All class announcements will be made on the website. Complete problem #5 in Chapter 1 for Friday. Lecture notes: Chapter 1 Scope and Method of Economics Economics is the study of how individuals and societies choose to use the scarce resources that nature and previous generations provided . How do you use society's scarce resources in such a way to make people best off? The most important cost concept is opportunity cost Opportunity cost is what is given up when we make a choice or decision Everything you do has an opportunity cost Economics is everywhere Resources are scarce and the decision on what to use is weighed when we consider extra benefits versus extra costs Economics doesn't prove theories Economics develops analytic models Only a theory can establish cause and effect There are two major divisions of economics Microeconomics: the branch of economics that examnies
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This note was uploaded on 02/21/2008 for the course ECON 4.3 taught by Professor Fox during the Spring '99 term at Pennsylvania State University, University Park.

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Scope and Method of Economics - Econ 4.3 Wednesday January...

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