251Ch1lecture1Notes - Lecture 1: Definition of economics 4...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
8/21/2011 1 Chapter 1: What is Economics? Lecture 1: Definition of Economics 1 Ch1: What is Economics Lecture 1: Definition of economics 2 Definition of Economics Economics = Social science that studies the choices we make as we cope with scarcity and the incentives that influence and reconcile our choices Economics as a social science • Create theories and models that we’d like to test Ceteris paribus = all else equal Ch1: What is Economics Lecture 1: Definition of economics 3 Ch1: What is Economics
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Lecture 1: Definition of economics 4 Microeconomics Microeconomics vs Macroeconomics Individual consumers, households, firms, and government influence 3 Basic questions of economics 1. What is produced? 2. How is it produced? 3. For whom is it produced? Ch1: What is Economics Lecture 4: Marginal cost and marginal benefit Normative vs. positive Normative = judgment Positive = fact Ch1: What is Economics Lecture 4: Marginal cost and marginal benefit...
View Full Document

This note was uploaded on 09/21/2011 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue University-West Lafayette.

Ask a homework question - tutors are online