EC120 Study Guide - Final Guide: Saving, Opportunity Cost, Demand Curve
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EC120 Full Course Notes
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Assumptions: simplify our complex world, making it easier to understand, ex. To study international trade, assume two countries and two goods: most assumption are unrealistic, but simple to learn and provide useful insights about the real world. Models: a highly simplified representation of a more complicated reality, economists use models to study economic issues. Microeconomic tools: tables and diagrams, graphs, math. Graphs express the relationship between variables: when developing theory, provides visual expression of ides, when analyzing data, provides visual relationship between variables. Pie graph, bar graphs, line series graphs. Economics are often concerned with relationship between two or more variables. Our data: a pairwise observation per student comprised of hours spent studying and their. Ordered pairs of numbers can be graphed on a two-dimensional grid. Economists often want to show how one variable affects another while holding all other variables constant (ex.
