Economics 1021A/B Lecture Notes - Opportunity Cost, Ceteris Paribus

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Arvin Dar

Document Summary

Illustrating concepts using a ppf: shifts in a ppf, the consumption possibility frontier, basic concepts. The study of individuals in their everyday business of life. The study of the use of scarce resources to satisfy our unlimited wants. Micro: small sectors, studies behaviour in these small components of the economy, study of consumers, individuals firms, small parts of the economy being looked at under a microscope. Broad aggregate: how is the economy"s balance of payments, income, etc. Positive: the study of what is, use data to see whether a statement is true or false. Statement: if taxes on beer increase, consumption of beer will decrease. Question: do higher taxes on beer reduce its consumption: there is no value judgement just gather data on consumption before and after taxes. Normative: the study of what should/ought to be, you cannot test the validity of the statement. Statement: the government should tax the rich more.