,Chapter 1 : IntroTo Economics
economic can help decision views
on
thinking
spending/ saving/debt making change
,
1 1 .
: What is economics about
economics : choices/individuals firs
making
·
,
,
.)
society etcc ,
wants we too New
scarcity resources
too
:
many
↳ all resources are scarce but some are more/less
↳ people
,
resource limitations faced
mus+ make choices given ~
our lives money ,
participate
,
the extent to which people
A Knowledge etc
work,
in their environment depends on ethic, .
percieved benefits
-
monetary cost, time-effect ,
foregone opportunities
incentives : the
good/bad factors influence how
that
people
make decisions
microeconomics deals w/ individual decision
:
,
business,
making
and
industries => labar laws environmental policy + ,
,
health care
↳ looks at how markets are structured
macro economics : focuses on broader issues faced by
the entire nation
Caggregate/gross) ↓
#tima
↳ Inflation !: increase in general prices
↳ unemployment
, ↳ usually fixed
by the Federalgou,
↳still a↑ scale
applies microecon concepts at
-
looks atpolicies that i economic growth impact ,
you Spending
of , + taxation effect of
, policy monetary
↳Internationaltrade
#Macro-aggregate)
= individual
-
model : simplification of real world ideas
↳
stylized simplify
=
intofacts to basic elements
↳ aim to
identifyevents
relationships your variables in order to
predict why occur /correlation - causation
cerer's paribus : importance of
keeping other factors
at a constant
Insight > Theory > tested weempirical catalobs
- -
·
↳ sometimes
they are false
Efficiency : deals we how well resources are used/allocated
↳ Productio Eff : produced at
goods I cast
A Trade
offs
↳ allocative Eff: ind who desire a
.
product the most obtain it
, ↳
Paren Eff :
Society improves the well
being of as many individuals as
possible wo
making it wase forothers
Equity fairness in how resources are used/allocated
·
:
positiveanalysis the use of statements or questions that
:
be pos S
of infol facts haveto
are based on the
understanding (doesn't
↳ EX : total cost of participation in an activity
nominative analysis : the use of statements or
questions that are
based on opinions/ societal beliefs on what should (wif) take place
↳
differing opinions leads to hard nominativeQualysis
1 2 of Economics
key principles
. :
1 Econ is
.
concerned ul making choices wh limited resources
↳ maximize benefits/satisfaction / well being
aspects life are limited
↳ most of
quality
When
2 .
making decisions ,
one must take into account
trade apps+
opportunity
↳ must decide
costs
biw alternatives
↳
opportunity cost :
how we weigh the benefits /cost of
our decisions ; measured by the value of next best alternative
3
. Specialization leads to gains forall involved
in to time
) tasks completed
↳ Exitax
- outs !
4 .
People respond to incentives , both good/bad
it is based
↳ every time we makea decision
on an incentive
↳ can be policies Bred by you institutions
economic can help decision views
on
thinking
spending/ saving/debt making change
,
1 1 .
: What is economics about
economics : choices/individuals firs
making
·
,
,
.)
society etcc ,
wants we too New
scarcity resources
too
:
many
↳ all resources are scarce but some are more/less
↳ people
,
resource limitations faced
mus+ make choices given ~
our lives money ,
participate
,
the extent to which people
A Knowledge etc
work,
in their environment depends on ethic, .
percieved benefits
-
monetary cost, time-effect ,
foregone opportunities
incentives : the
good/bad factors influence how
that
people
make decisions
microeconomics deals w/ individual decision
:
,
business,
making
and
industries => labar laws environmental policy + ,
,
health care
↳ looks at how markets are structured
macro economics : focuses on broader issues faced by
the entire nation
Caggregate/gross) ↓
#tima
↳ Inflation !: increase in general prices
↳ unemployment
, ↳ usually fixed
by the Federalgou,
↳still a↑ scale
applies microecon concepts at
-
looks atpolicies that i economic growth impact ,
you Spending
of , + taxation effect of
, policy monetary
↳Internationaltrade
#Macro-aggregate)
= individual
-
model : simplification of real world ideas
↳
stylized simplify
=
intofacts to basic elements
↳ aim to
identifyevents
relationships your variables in order to
predict why occur /correlation - causation
cerer's paribus : importance of
keeping other factors
at a constant
Insight > Theory > tested weempirical catalobs
- -
·
↳ sometimes
they are false
Efficiency : deals we how well resources are used/allocated
↳ Productio Eff : produced at
goods I cast
A Trade
offs
↳ allocative Eff: ind who desire a
.
product the most obtain it
, ↳
Paren Eff :
Society improves the well
being of as many individuals as
possible wo
making it wase forothers
Equity fairness in how resources are used/allocated
·
:
positiveanalysis the use of statements or questions that
:
be pos S
of infol facts haveto
are based on the
understanding (doesn't
↳ EX : total cost of participation in an activity
nominative analysis : the use of statements or
questions that are
based on opinions/ societal beliefs on what should (wif) take place
↳
differing opinions leads to hard nominativeQualysis
1 2 of Economics
key principles
. :
1 Econ is
.
concerned ul making choices wh limited resources
↳ maximize benefits/satisfaction / well being
aspects life are limited
↳ most of
quality
When
2 .
making decisions ,
one must take into account
trade apps+
opportunity
↳ must decide
costs
biw alternatives
↳
opportunity cost :
how we weigh the benefits /cost of
our decisions ; measured by the value of next best alternative
3
. Specialization leads to gains forall involved
in to time
) tasks completed
↳ Exitax
- outs !
4 .
People respond to incentives , both good/bad
it is based
↳ every time we makea decision
on an incentive
↳ can be policies Bred by you institutions
