Topic01a - Getting started Micr oec on om ics 1 (E C O N 1...

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1 Microeconomics 1 (ECON 1101) Getting started… www.ecocomm.anu.edu.au/econ1101 Link to WebCT Course outline, lecture notes, tutorials Lecture times Recorded Lectures: on WebCT Tutorial selection: ETA Instructions Recommended reading – Freakonomics Help Desk and contacting the lecturer Ignoring any cost considerations, what would be your optimal (ideal) mode of transport to uni each day? 1(a). Thinking as an economist Introduction n
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2 How would considering costs change your answer? Scarcity exists for everyone everywhere! The scarcity principle Boundless wants cannot be satisfied with limited resources. Therefore, having more of one thing usually means having less of another. Because of scarcity we must make choices. Scarcity Choices Wants vs. resources Economics – The study of how people make choices under conditions of scarcity and of the results of those choices for society. Introduction Economics: studying choice in a world of scarcity Economics: studying choice in a world of scarcity Economics: studying choice in a world of scarcity n n n ¤ ¤ ¤
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3 Choosing your optimal transport revisited Assumptions To make it simple, assume you have been given the car You only have two options: travel by car or bus Question How would you get to uni? How did you make your choice? Is your choice relevant to society or not? Rational person Someone with well-defined goals who tries to fulfill those goals as best she or he can. This involves making a choice on the basis of costs and benefits of any action or decision. Economists analyse the choices that people make by comparing the costs and benefits of any action or decision. An individual (or a firm or a society) should take an action if, and only if, the extra benefits from taking he action are at least as great as the extra costs. Economists need numbers to estimate costs and benefits
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This note was uploaded on 08/29/2011 for the course ECON 1101 taught by Professor Janegoley during the Three '08 term at Australian National University.

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Topic01a - Getting started Micr oec on om ics 1 (E C O N 1...

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