ECN 001A Lecture 6: Thinking Like an Economist Continued
14
ECN 001A Full Course Notes
Verified Note
14 documents
Document Summary
Econ-b05 lecture 6 notes - thinking like an economist continued. As the economy shifts resources from beer to mountain bikes: If you take people from bike shops to make beer, there would be a big increase in beer production. If you take beer brewers away from producing beer and have them produce bikes, there would be a big decrease in beer production. Microeconomics: anything else not involving the government. The economist as policy advisor (end of recap) Important to tell the difference between a positive statement which is a statement of fact that can be tested and a normative statement which is a statement of opinion or value, it can"t be proven or disproven. Prices rise when the government increases the quantity of money. Positive describes a relationship, could use data to confirm or refute. Normative this is a value judgment, cannot be confirmed or refuted. A tax cut is needed to stimulate the economy.
