ECN_203__1__Introduction

ECN_203__1__Introduction - pursuing a given choice or...

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Chapter 1: Overview
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Why Study Economics? Scarcity -- Resources are finite or scarce , especially relative to human wants and needs. What are some scarce resources?
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The Study of Economics The study of how societies manage scarce resources. It’s about making decisions (choices). Economics is a necessary but not sufficient tool for examining the work.
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Macroeconomics Microeconomics -- The study of economic decisions of individuals and firms (businesses). Macroeconomics -- The study of economic decisions in the economy as a whole (aggregates or totals).
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Decision Making and Opportunity Cost Opportunity Cost – The cost of
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Unformatted text preview: pursuing a given choice or decision, based upon the best alternative given up. Cost of choosing. Whats your opportunity cost for coming to class today? Economic Models In this class, we will build basic models to make predictions about economic behavior. Models make simplifying assumptions. Ceteris Paribus An assumption of other things being equal. Economic Models Evaluation of a model depends on the assumptions Strong assumptions less realistic Weak assumptions more realistic Relax the assumptions move from a strong to weak assumptions...
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This note was uploaded on 04/18/2008 for the course ECN 203 taught by Professor Evensky during the Spring '07 term at Syracuse.

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ECN_203__1__Introduction - pursuing a given choice or...

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