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