This unit is my first taste of the subject of economics, and it is quite interesting. Not as dry a topic as I first thought it might be. It is a study of human behaviour – always fascinating. Specifically, economics is the study of the choices made to satisfy infinite wants, given our finite resources. Resources include money, time, knowledge. The choices are made by people, businesses, societies, governments.
Economics looks at why and how choices are made, and the consequences of those choices on both the micro and macro levels. It makes various assumptions, such as people generally make rational decisions based on information and logic. The consequences of a particular choice include making trade-offs against opportunities offered by alternative choices.
Understanding how incentives can drive different choices – link1 link2 link3.
This week there are four short lectures with study notes, and a chapter reading from the textbook. Based on these are some exercises, which will be discussed at the workshop next week.