ECON CH. 1

ECON CH. 1 - TODAYS MENU Monday 24 January 2011 I BUSINESS...

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TODAY’S MENU: Monday 24 January 2011 I. BUSINESS A. Practice Problems (answers on Moodle) 1. Chapter 1: 6-12, 16-18, 21 2. Chapter 2: 1, 2, 4-8, 10 II. SUBSTANCE A. The basics 1. Economies and economics a. Definitions b. What? How? For whom? Consequences? i. Microeconomics ii. Macroeconomics c. Markets -Substance of being, providing services, distribution of goods (in exchange for money) willing to give up to get service B. Economic reasoning (main concepts) 1. Opportunity Cost (trade off; making decisions-always costs involved, always giving up something else—the thing that is given up best option not capable. Time, money, efforts. Not all things given up—when given a choice, economists assume with information available at the time, will choose what is best for them at that time. Opportunists choose what is second best in line) 2. The Margin (how much, how many, increment decisions questions.) 3. Rationality (when decisions are made, opt of decisions that are best. Does not mean that we don’t make made decisions, we make them all the time, it
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This note was uploaded on 02/14/2012 for the course ECON 2030 taught by Professor Bong during the Fall '07 term at LSU.

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ECON CH. 1 - TODAYS MENU Monday 24 January 2011 I BUSINESS...

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