Econ 100

Macroeconomics 
Keynesian

First Midterm - March 18th MONDAY - 28%
Second Midterm - April 15th MONDAY - 22%
Final - May 13th MONDAY 7:15 p.m.  - 32%
Quizzes - 18%

Midterms - mult. choice & essay
Quizzes every day except midterms
14 lectures
11 quizzes
2 lowest scores dropped

Quiz breakdown
5 - 12 minutes
1 question - maybe multiple parts
mostly about the week before

"Time is the fairest thing on Earth."

Economics - the study of how to efficiently utilize scarce resources to satisfy unlimited wants.
How to make choices
How to spend money, not how to make money.

Every choice has an opportunity cost
Choice of going to this class
Opportunity costs for going to this class:
opera 15
movie 39
date 49
sleep 53
jog 29
video games 80
econ class 85
Opportunity cost : next best option you gave up. Ex: video games 80
Marginal cost, not about total or average.
Marginal cost
Sunk cost (Ex: tune up for cars, is the tune up worth it?)

greek letter π = profit
π = TR (total revenue) - TC (total cost)
π = π*a - TC*π

1) Micro v. Macro

2) Positive v. Normative
Positive - is correct, true
normative - has personal feelings, ex: "this is better than ___ because it does ___."

3) Descriptive v. Theory
Descriptive - describing a phenomenon, "this happened then this happened"
Theory - there is a correlation between the two events

4) Theory v. Model 
Model - representation of a theory


...real world 
=> relevant facts 
=> patterns 
=> hypothesis 
=> theory 
=> models 
=> principles 
=> law
=> policy.

-----> all done through repeated testing

Ockham's Razor - simplest answer is the best answer.