ECN607 – Lectureaid_1

ECN607 – Lectureaid_1 - ECN607 Managerial...

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ECN607 – Managerial Economics Study Aid: lecture 1 Introduction This lecture introduces economics as a social science. Economics is defined and its sub-branches, microeconomics and macroeconomics, are introduced. Scarcity, rationality and self-interest are discussed and their consequences for human decision-making and model building are analyzed. Economics as a science is intimately associated with the development and use of models to understanding the human behavior as related to choosing the best alternative as related to goods and services. The Power of Economic Analysis The analytical framework of this microeconomics course is grounded in the economic way of thinking and of seeing the world. The economic way of thinking allows individuals, which is the unit of analysis in microeconomics, to make informed conclusions about events occurring in the world. Economics is the study of how people divide their scarce resources to satisfy their unlimited wants. One of the goals of economics is to understand the choices that people Macroeconomics versus Microeconomics Economic theory is divided into two main branches of analysis: macroeconomics and microeconomics. Macroeconomics studies aggregates, such as the economy as a whole. It deals with nationwide events such as changes in inflation, national income, and economic growth as measured by gross domestic product (GDP), among others. Microeconomics is the branch of economics that deals with decisions made by individuals, households, and businesses. Put in another way, macroeconomics looks at the forest whereas
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This note was uploaded on 08/16/2010 for the course BUS ECON607 taught by Professor Tbd during the Spring '10 term at Grand Canyon.

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ECN607 – Lectureaid_1 - ECN607 Managerial...

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