Assignment 1 - Spencer Lane 10966400 Prof. Cassey Econ...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Spencer Lane 10966400 Prof. Cassey Econ 101-1 1a. Economics is the study of the choices consumers business managers, and government officials make to attain their goals given their scarce resources. Economics also studies how people make decisions facing scarcity and studies the rational behavior of humans. 1b. The goal of economics is to predict how people will behave in situations where scarcity and rationality are prevalent. 1c. Economists use models to explain human behavior because they are a simplified version of reality used to analyze real world economic situations. They also use them because they help to make economic ideas sufficiently explicit and concrete so that individuals, firms, or the government can use them to make decisions. 1d. Economists get away with making assumptions that are false because assumptions are not true but they seem as if they are true in certain situations that economists care about. Facts and assumptions create a model (a simplification of reality) where we can make predictions
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/15/2012 for the course ECONS 101 taught by Professor Michalski during the Fall '08 term at Washington State University .

Page1 / 2

Assignment 1 - Spencer Lane 10966400 Prof. Cassey Econ...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online