Positive and Normative

Principles of Macroeconomics 2nd Canadian Edition by Case, Fair, Strain, Veall The Scope and Methods of Economics Chapter 1 PowerPoint presentation Slides to Accompany the Text By Peter Ibbott , Kings College - University of Western Ontario Richard E. Mueller, University of Lethbridge 1 copyright 2002, Pearson Education Canada 2 copyright 2002, Pearson Education Canada A rendering of Economics z Economics is the study of how individuals and societies choose to drop the scarce resources that nature and previous generations have provided. Another Definition of Economics z Economics is the study of how scarce resources are allocated among remote demands. 3 Copyright 2002, Pearson Education Canada 4 Copyright 2002, Pearson Education Canada Four master(prenominal) Reasons to Study Economics... z z z z To watch out a way of thinking To consider society To understand global affairs To be an informed voter 1. To Learn a Way of Thinking... z Three Fundamental Concepts of Economic Thinking y Opportunity Cost y Marginalism y Information, Incentives, and Market Coordinations 5 Copyright 2002, Pearson Education Canada 6 Copyright 2002, Pearson Education Canada 1 Opportunity Costs z The fortune cost of something is that which we give up when we make that choice or decision.

z The implication is that all decisions involve trade-offs. z at that places no such thing as a free lunch!! Question to Consider z What is the opportunity cost of your attending university? z Include all forgone options in your consideration. 7 Copyright 2002, Pearson Education Canada 8 Copyright 2002, Pearson Education Canada Marginalism z In slowness the be and benefits of a decision, it is important to weigh only the be that are contingent upon the decision. z Do not allow sunk costs y Sunk costs are the costs that cannot be avoided, regardless of what is done in the future, because they have already been incurred. 9 Copyright 2002, Pearson Education Canada Information,... If you want to get a full essay, order it on our website: Ordercustompaper.com

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