Intro to Econ

Intro to Econ - been in the past o Ex.- Prada purse sales...

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Lecture 2 Notes Why study economics? o In order to understand economic issues and interpretations It is difficult to read a newspaper or turn on a television newscast without encountering economics Need to understand both the Canadian and global economy o Value the skills of economic reasoning Make daily choices regarding the use of scarce resources o Economic knowledge and skills lead to more effective civic participation Vote wisely for the politicians who will make important decisions Need to understand interest rates, foreign exchange rates, taxes, pubic debt and laws regarding fair competition Branches of Economics Analytical (positive) Normative (policy) Descriptive Conditional Analytical (positive) o Concerned with 2 types of statements o Descriptive statement portray things as they are in the present or have
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Unformatted text preview: been in the past o Ex.- Prada purse sales at Macys in this quarter are 10% higher than in the last quarter o Statements can be verified statistically o Conditional statements are forecasts based on careful analysis of economic behaviour o Often take to form of if x occurs then y will follow o Ex.- If the price of iphones decreases the quantity purchased will increase o The forecast can either be confirmed or refutes by referring to known facts or observed the accuracy of prediction Normative (Policy) o Deals with statements that contain value judgements o Expresses what economists think should be the case o Ex.- Municipal governments should provide more housing for homeless people. o Not a statement of fact, it is open for debate...
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Intro to Econ - been in the past o Ex.- Prada purse sales...

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