ECON 202 Lecture Notes - Lecture 1: Auto-Tune, Productive Efficiency, Opportunity Cost
31 Jan 2017
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Economics: the study of the choices people make to attain their goals, given their scarce resources. Microeconomics: approaching the study of economies by focusing on individual behavior. People make choices that are necessary in a world of scarcity. You"re a(cid:374) age(cid:374)t if you"re (cid:449)orki(cid:374)g for a fir(cid:373), go(cid:448), represe(cid:374)ti(cid:374)g the (cid:449)ill of people. Scarcity: a situation in which unlimited wants exceed the limited resources available to fulfill those wants. Example: robots everyone has everything they want when they want it. People will engage in other things that they want. People are al(cid:449)ays goi(cid:374)g to (cid:449)a(cid:374)t so(cid:373)ethi(cid:374)g. the curre(cid:374)t situatio(cid:374) is that there is(cid:374)"t e(cid:374)ough i(cid:374) the (cid:449)orld to supply e(cid:448)eryo(cid:374)e"s (cid:449)a(cid:374)ts. We care about the 3 economic ideas because. The concept of rationality has been studied for decades. They know what they want and the value. Rational: using all available information to achieve your goals. Rational consumers and firms weigh the benefits/costs of each action to make the best decision.
