Thinking like an economist hapter 2
Thinking Like an Economist Chapter 2
Outline e The economist as scientist o The economist as policy adviser Why Economists disagree
Outline • The Economist as Scientist • The Economist as Policy Adviser • Why Economists disagree
Every field of study has its own terminology Mathematics e integrals axioms vector spaces Psychology ego冷id冷 cognitive dissonance Law promissory o estoppel torts venues Economics supply o opportunity cost elasticity g consumer surplus令 demand冷 comparative advantage deadweight loss
Every field of study has its own terminology ▪ Mathematics •integrals ❖ axioms ❖ vector spaces ▪ Psychology •ego ❖ id ❖ cognitive dissonance ▪ Law •promissory ❖ estoppel ❖ torts ❖ venues ▪ Economics •supply ❖ opportunity cost ❖ elasticity ❖ consumer surplus ❖ demand ❖ comparative advantage ❖ deadweight loss
Economics trains you to Think in terms of alternatives Evaluate the cost of individual and social choices e Examine and understand how certain events and issues are related
Economics trains you to. . . . • Think in terms of alternatives. • Evaluate the cost of individual and social choices. • Examine and understand how certain events and issues are related
The economic way of thinking o Involves thinking analytically and objectively Makes use of the scientific method Uses abstract models to help explain how a complex real world operates Develops theories, collects and analyzes data to evaluate the theories
The economic way of thinking . . . • Involves thinking analytically and objectively. • Makes use of the scientific method. • Uses abstract models to help explain how a complex, real world operates. • Develops theories, collects and analyzes data to evaluate the theories