Econ Introduction Notes
Econ Introduction Notes Econ 102
Popular in Microeconomic Principles
Popular in Microeconomics
This 3 page Class Notes was uploaded by Michelle Pope on Friday August 26, 2016. The Class Notes belongs to Econ 102 at University of Illinois at Urbana-Champaign taught by Dr. Issac DiIanni in Fall 2016. Since its upload, it has received 173 views. For similar materials see Microeconomic Principles in Microeconomics at University of Illinois at Urbana-Champaign.
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Date Created: 08/26/16
Introduction 9/22/16 ECON 102 No discussion session 8/23 1. Economics Syllabus TA: Irina Valenzuela a. Def: Social science that studies production and trade Email: email@example.com b. Study human interaction and social order Comprehensive exams Missed exam; exam's weight will be shifted to final c. Individual values and social order --economics connects them both Reading quizzes each discussion d. Describes how people behave e. A positive science No curve f. Predict the future Questions based on lecture 2. Spontaneous Order Workbook is recommended a. Def: Order that is the product of human action, but not human design Practice exams 3. Why is Economics Important? Books: free pdf online; workbook at bookstore a. Make Better Business Decisions b. Apply critical thinking in all the social systems 4. Positive vs Normative Analysis a. Positive: analysis that attempts to describe the way things are in reality i. Ie this wall is white b. Normative: analysis that attempts to describe the way things should be i. Normally opinions or according to the person ii. IE this wall should be black 5. The Meaning and Value of Theory a. Theory: a principle that explains some phenomenon i. Abstract idea ii. IE theory of gravity iii. Leaves out non -essential details 6. Market Economy VS Command Economy a. Society: group of people who have moral, political, or economic relationships with each other b. Social System: set of rules that determine the role of physical force in human relationships c. Market Economy: social system in which all resources are privately owned and controlled i. GOVT role to protect economy ii. Free market system iii. Free enterprise system iv. Laissez-Faire capitalism v. Don’t see pure form d. Property Right: moral and legal right to control a resource and to exclude others from using it ii. Free market system iii. Free enterprise system iv. Laissez-Faire capitalism v. Don’t see pure form d. Property Right: moral and legal right to control a resource and to exclude others from using it e. Command Economy: social system in which all resources are owned or controlled by the government i. Told where to live and where to work ii. IE socialism, communism, fascism (AKA National Socialism) iii. Don’t see pure form f. Seen both types as extremes like extreme democrats and republicans i. Closer to command - North Korea ii. Closer to Market- Canada g. Mixed Economy: social system in which some resources are privately owned and controlled, and some are owned or controlled by the government i. Most countries are this and more closely toward market economies ii. IE USA, England 7. Four Starting Points of Economics a. Scarcity: amount of goods available is not sufficient to satisfy all human desires i. Why we make decisions in life ii. Face trade offs and make choices iii. IE buy a drink or food when you are hungry and thirsty b. Unlimited Desires: no matter what one's current circumstances, always possible to imagine and achieve a more desirable state of affairs i. Always going to find new things to want ii. Always going to find some way to improve the world we live in iii. Humans have unlimited desires iv. Material goods, and non -material goods v. IE clothes, friendship, education vi. Limited desire for each item vii. Need and want are basically the same thing, just priorities viii.What you need is determined by your values ix. We choose our own values c. Methodological Individualism: principle that the individual human being is the basic unit of research in social science i. Need to understand how individuals make choices ii. Groups don’t make choices, individuals do d. Rational Choice: people pursue their values i. Going to pick an option that is going to best serve their values ii. Not mean they only care about themselves iii. Enlightened self interest iv. Difference between rational and moral ii. Groups don’t make choices, individuals do d. Rational Choice: people pursue their values i. Going to pick an option that is going to best serve their values ii. Not mean they only care about themselves iii. Enlightened self interest iv. Difference between rational and moral v. Rational people can still make mistakes 1) Might have a lack of skill or knowledge vi. Economics take people's values as given vii. Self-interested and respond to incentives
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