ECON 111 Lecture Notes - Lecture 1: Supply And Demand, Tabula Rasa, Engel Curve
16 Apr 2016
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Economics- science of the artiicial ruled by human not natural law. The theories and conclusions cannot be directly tested. How to reveal your true ideology and value. Live in the future, and act in the present. Government imposes and intervenes in the market place in relation to the inequality in the system. Marginal: how decision making takes place at the margin. Economist take note of implicit costs when determining revenue. Constrained in reaching levels of happiness by available means and budget. Market price increases due to endowment theory (sense of personality and belonging to an object that increases the value). Children were viewed as blank slates (tabula rosa)- bentham. Human existence was the search for pleasure and avoidance of pain- Economics was the distribution of wealth among classes until the shift to how individuals maximize happiness and proit due to constrained maximization of utility. To buy a good one must have income.
