Course Objectives for Chapter 1: Economics: Foundations and Models
Students should be able to:
· Explain these three important ideas:
o People are rational. People respond to incentives.
o Optimal decisions are made at the margin.
· Discuss how an economy answers these questions:
o What goods and services will be produced?
o How will they be produced?
o Who will receive the goods and services?
· Explain the role of models in economic analysis.
· Distinguish between microeconomics and macroeconomics.
· Become familiar with important economic terms