ECN 203 (1), Introduction

ECN 203 (1), Introduction - pursuing a given choice or...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
The Study of Economics
Background image of page 1

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

View Full DocumentRight Arrow Icon
The Study of Economics Economics -- The study of the production, allocation, and distribution of (limited) resources to most efficiently meet (unlimited) human wants and needs.
Background image of page 2
Macroeconomics Microeconomics -- The study of economic decisions of individuals and firms. Macroeconomics -- The study of economic decisions in the economy as a whole (aggregates or totals).
Background image of page 3

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

View Full DocumentRight Arrow Icon
Scarcity – A Fundamental Economic Property Key – Resources are finite or scarce , especially relative to human wants and needs. Resources -- money -- time -- environmental resources
Background image of page 4
Scarcity and Opportunity Cost Opportunity Cost – The cost of
Background image of page 5

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

View Full DocumentRight Arrow Icon
Background image of page 6
Background image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: pursuing a given choice or decision, based upon the best alternative given up. Using scarce resources in everything we do. Economic Decisions: Theories and Models Theory-- An assertion about the major causes of a given behavior, done in order to predict outcomes. Model-- A formalization of a theory, done to make concise predictions . The Role of Assumptions Theories and models make simplifying assumptions The assumptions emphasize the main causes without making the theory/model overly cumbersome. Evaluating a theory and model: How closely do these assumptions approximate reality?...
View Full Document

Page1 / 7

ECN 203 (1), Introduction - pursuing a given choice or...

This preview shows document pages 1 - 7. Sign up to view the full document.

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