ECON100A Syllabus2011

ECON100A Syllabus2011 - Department of Economics University...

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Department of Economics Summer 2011 University of California, Berkeley Economics 100A M, T, W, Th 10-11.30 AM, 390 Hearst Min Dr. Carson Economics 100A -- Economic Analysis--Micro Economics offers unique insights into the study of human behavior. Perhaps nowhere is this better illustrated than in microeconomics, broadly defined. The bedrock assumption in microeconomics assumption is that economic agents seek to maximize their well being, subject to whatever constraints are placed upon them. In mathematical terms, individuals and firms have objective functions that are optimized subject to constraints. This means that individuals seek to maximize their utility subject to prevailing prices and income, and firms seek to maximize profits. This is price theory. Out of this comes several interesting results, such as political decision makers allocate vote and non-vote support to maximize their political utility functions. Stock owners rationally separate themselves from day-to-day management to maximize their utility, although this decision is itself costly. Game theory has gained greater appeal in microeconomics, and modeling human interaction as an effort to make each individual better off given that all other economic agents are also trying to make themselves better off has greatly added to the
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ECON100A Syllabus2011 - Department of Economics University...

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