ECON 104 Lecture Notes - Lecture 2: Demand Curve, Microeconomics, Economic Equilibrium
20 Jan 2016
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Chapter 2: economics, a special way of thinking. Normative - what ought to be? someone"s opinion. = study of allocating scarce resources to achieve some goals. = an art of taking common sense and making it incomprehensible. = a special way of thinking about behavior: we all speak english which is the common language, but special ways is the way we speak english (i. e. accents) Neoclassical economics: people are maximizers, principle of diminishing marginal values, the idea of equilibrium, paying special attention to opportunity cost, thinking on margin . Science = 1) testable hypothesis (and want to know if it"s correct) Experiments (economics doesn"t have much as it"s hard/can"t do this) Model (very) simplified copy of a real thing help make you be able to study things (ie without killing) Homo economics: - model of a person a maximizer (get most of something by determining what it is therefore impossible to)-: -> desire to get the most ->
