Prof. Nuwal seems to be lively today.
First section: What is decisionmaking?
Decisionmaking is choosing between alternatives. Choosing one option necessarily means rejecting other options.
It’s necessary to make choices because resources are scarce. Resources are finite, and have alternate uses; therefore, resources have to be allocated among potential uses.
Economics: The study of money. The study of scarce resources.
Microeconomics: Study of the economic behavior of individuals.
Macroeconomics: Study of the economic behavior of large groups. (Aggregates.)
Positive economics: Study of definite things. Principles of economics.
Normative economics: Application of economic principles. Solving problems.
Resources: Land, Labor, Capital, and Entrepeneurship (AKA: Factors of Production)
Rent pays for use of land. Wages pay for use of labor. Interest is paid for use of capital. Profit is paid for use of entrepeneurship.
Next class: Start with production/posibility curve, costs.