Chapter 1 - Economics Chapter 1 Chapter 1 Economics:...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Economics Chapter 1 Chapter 1 Economics: Foundations and Models Learning objectives: 1) Discuss these three important economic ideas: People are rational People respond to incentives Optimal decisions are made at the margin 2) Discuss how an economy answers these questions What goods and services will be produced? How will the goods and services be produced? Who will receive the goods and services? 3) Understand the role of models in economic analysis 4) Distinguish between microeconomics and macroeconomics 5) Become familiar with important economic terms Page 1 of 4 Mohammed Al Khalifa
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Economics Chapter 1 What is Economics? Economics is the study of choices people make to attain their goals given their scarce resources. Economics assumes… 1) Rational: Economics assumes rationality (people are rational) 2) Incentives: People respond to incentives 3) Optimal: Optimal decisions are made at the margin (margin = the limit) Every economy needs to answer these questions…
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/26/2008 for the course ECO 001 taught by Professor Gunter during the Fall '06 term at Lehigh University .

Page1 / 4

Chapter 1 - Economics Chapter 1 Chapter 1 Economics:...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online