ECON 201 Lecture Notes - Lecture 1: Imperfect Competition, Surface Mining, Industrial Waste
18 May 2016
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Document Summary
Economics is a social science concerned with use of scarce resources in the production and distribution of goods and services to satisfy the unlimited human wants. Positive economics is descriptive, it describes the facts (of an economy) as they are. Normative economics, on the other hand, tells us what the world should be. Major work: an inquiry into the nature and causes of the wealth of nations (1776) Major wok: the general theory of employment, interest and. Theories/ideas: slumps are due to lack of demand , gov. should interfere . Major work: the political order of free people (1979) One in which goods are limited relative to desires. Denotes the most effective use of a society"s resources in satisfying people"s wants and needs. Involves observing econ. affairs and drawing upon stats and hist. records. Applies the tools of statistics to economic problems. Econometrics economists can sift through mountains of data to extract simple relationships.
