ECON 103 Lecture Notes - Lecture 2: Microeconomics, Macroeconomics, Deductive Reasoning
18 Sep 2015
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It relates o individual perspective and decision making: the descision makers (people, companies, etc. ) are called economic agents, studies th societal outcomes that arise from these decisions (are they good or bad?) Market: any environment in which an exchange takes place, most often, goods are traded for money, they function in allocating scarce resources, ood at promoting social wellbeing. We use market effiecency to determine whether it"s good or bad. Public policy: aka government interference in markets, can be used to improve societal outcomes. It allows us to change the outcomes of a market in order to caus positive societal changes. Introductoy concepts an models positive v normative statements scarcity. How do we study microeconomics: we use models: Marginal analysis: allow us to take basic concepts and assumptions and analyze them rigorously, use them to make predictions, allow us to make normative and posiive statements. Positive statements: a statement about what is: aka descriptive analysis, ex.
