ECN 340 Study Guide - Midterm Guide: Marginal Utility, Marginal Cost, Opportunity Cost
1 Mar 2016
School
Department
Course
Professor
Document Summary
Economic approach- thought process, or unique manner in which we approach problems confronted by human beings. Mental skill that incorporates a special view of human behaviour. Arises because of an unlimited desires and limited resources to satisfy those desires. Unlimited desires include both material and non-material: love, health, friendship, sex, vacations, good looks, etc. There are limited resources to satisfy all these wants (including time) To satisfy their desires, people exchange goods and services; they exchange those things they have in abundance for those they don"t have in effort to max satisfaction. Economists use the amoral approach to analyzing issues and problems facing human beings. The amoral approach is devoid of our own values. Economist tries to understand the behaviour of others give their own values. Positive- analysis of facts to establish cause and effect relationship. Without value judgements: temperature is 24 degrees- an assertion that can be tested.
