Intro to Economics

Intro to Economics - Economics 1/13/09, 1/15/09 What did...

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Economics 1/13/09, 1/15/09 What did you do with the candy? Economics is about resource allocation Why did you divide the candy equally? Value judgments pervade economic policy Our objective as economists is to make the world a better place; to give people what they want; to make people happy When choosing an objective, we are making a value judgment! To think about: Market-based economies are based on two key principles: liberty and personal responsibility. Is it a good thing to give people what they want? Does it make people happy to give them what they want? What is economics about? NOT money, profit, business, the stock market,… per se It’s about allocating resources- to make people happy If we’re going to figure out how to make people happy we need to… 1. Define what “happy” means. (Our notion of happiness is a “social welfare” or “economic well-being.”) 2. Understand why people do what they do, and what the consequences of their behaviors are. (This means economists don’t JUST think about
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Intro to Economics - Economics 1/13/09, 1/15/09 What did...

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