Intro to Microeconomics_Agnello_Date_021110

Intro to Microeconomics_Agnello_Date_021110 - Whole(macro...

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What is economics? - The study of society’s production and distribution of goods and services. Why we choose to use our scarce resources the way we do, and what are the consequences of those choices. Decision Making in a variety of settings - Very broad applications - Macroeconomics - International - National - Microeconomics - Business (government) - Household - Individual 2 Branches of Economics - Microeconomics - Small economic units - (individuals, households, firms, organizations) - Most useful for students - smart decision making in the ordinary business of life - Macroeconomics - Large units - (e.g. whole economy) - Inflation, unemployment, growth
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Unformatted text preview: Whole (macro) equals the sum of the parts (micro) but the method of studying each is quite different. Table 1 Manikew “Homoeconomics” = how we believe people will behave 1-4 Incentivized 8-10 (Macro) Principles 1 and 2 -> simple economist view of the world World scarcity Choice Opportunity Unlimited wants (trade off) Costs #2 Opportunity costs of actions- Like physics - for every force there’s and equal and opposite force- Economics. ..- (Make an economic choice)- You give up something (costs); time and or money- Not always obvious - sometimes subtle- No such thing as a free lunch...
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This note was uploaded on 08/30/2010 for the course ECON 151 taught by Professor Harris during the Spring '07 term at University of Delaware.

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