Notes8.24 - Econ 8/24 & 8/26 15:28 Economic way of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
15:28 Economic way of thinking: science – fact/story/theory/metaphor Fact: ex. salsa outsells ketchup Theory: supply/demand ex.  Stories: ex. Federal gov requires new automobiles to have seatbelts, air bags… etc and this causes an increase in accidents in pedestrians Ex. city of san fran  inc number of lanes and adds in air pollution Metaphor: ex. Adam Smith- Invisible Hand “people could act in their self interest  as if by an invisible hand promote public interest” Concern of statements of facts instead of ought or should Distinction between what is and what should be – facts Positive science doesn’t say what policy is better or worse. “Rent control should be abolished” = not an economic statement “Rent controls decrease the amount of resources in housing development” =  economic statement What goods are going to be produced? How do these goods get produced?
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/19/2011 for the course ECON 2005 taught by Professor Zirkle during the Fall '07 term at Virginia Tech.

Page1 / 4

Notes8.24 - Econ 8/24 & 8/26 15:28 Economic way of...

This preview shows document pages 1 - 2. Sign up to view the full document.

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