ECON101 Lecture Notes - Lecture 2: John Maynard Keynes, Warren Buffett, Neoclassical Economics
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What is the definition of economics: our wants and our desires = unlimited, esources = limited (both renewable and non renewable) (view specially held by neoclassical economists) Limited resources needed to satisfy our unlimited wants creates an inability to meet all our needs and wants; this is called scarcity: our wants and desires are unlimited, but resources are limited to fulfill our needs. Holds the view that economics is a study of mankind in the ordinary business of life. Places emphasis on methodological individualism: explains why individuals behave as they do, broad generalizations abt groups or type of ppl hampers the understanding of human behaviour (individuals unit of research) - try to understand the individual behaviour. Held the thought that the long run should not be considered and discretionary policies should exist to change stuff and the way you think about a problem considered that to be his definition of economics.