Exam Notes

The Nature of economics Ch.1 The economic way of cerebration- framework to meditate solutions to economic problems- solve and figure out why commonwealth venture their choices. Ex: How much time to study Choosing what courses to take Our way of thinking helps us understand what a politician means, help us make better descions, and help us understand whats going on around the world. Ex: Coming to Class. Economic analysis- way of thinking of all decisions. Economics- study of how people apportion their limited resources to satisfy their unlimited wants and the study of how people make their choices. Resources- things to make other things, satisfy peoples wants. Wants- what you want if you want it all. Ex: A better car, MERCEDEZ! People would buy it if their incomes were unlimited. We students are assured of our income people must make choices to satisfy the wants. We never set out enough of what we want. Individuals, buisnesses, and nations face alternatives. Small means-(Micro)( Economics)- individual decision making. Ex: decision of worker working a lot. * Macroeconomics- study of demeanor of economy as a whole and it deals with the economy-wide phenomena. * National unemployment rate * regularise of growth in money supply * Government bud take away emphcit. Macroeconomics deals with aggregates.

Economists presume individuals act as if movtivated (makes you feel good to own a MERCEDEZ) by self interest and respond predictably to oppurtunties for gain. modestness Assumption * People who dont intentionally make decisions that would collapse them worse off. Bounded sensibleity * Hypothesis that people are nearly, non fully rational. * We cannot examine every choice available to us. * We habit simple rules of thumb. Ex: Get up at 6:15 every day, just doing what you have to do. Rational Self Interest Respond to incentives- rewards for engaging in a circumstance activity. Positive incentives- extra credit Negative incentives- dont... If you want to get a full essay, order it on our website: Ordercustompaper.com

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