251.Lecture1 - (continuum) incorporating marginal analysis

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Economics: a SCIENCE which analyzes how people behave in world of scarcity Positive analysis (factual objective statements; what is) as opposed to normative analysis (what ought to be; subjective value) To build economic theory: 1) Abstraction 2) Definitions: as opposed to saying it is this or that, in econ it’s a matter of degree
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Unformatted text preview: (continuum) incorporating marginal analysis (marginal=additional, one more of something) 3) Establish the assumptions of the model. 4) Implications: derives directly from the assumptions 5) Hypothesis 6) Adoption of theory...
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This note was uploaded on 02/11/2012 for the course ECON 251 at USC.

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