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Slide 2 1 - 1 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show The Nature and Method of Economics 1 C H A P T E R Slide 3 1 - 2 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show The Economics Perspective Consider... Slide 4 1 - 3 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show CHOICE Consider... Slide 5 1 - 4 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show The Economics Perspective CHOICE RATIONAL BEHAVIOR Consider... Slide 6 1 - 5 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show The Economics Perspective CHOICE RATIONAL BEHAVIOR COST-BENEFIT Consider... Slide 7 1 - 6 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show The Economics Perspective CHOICE RATIONAL BEHAVIOR COST-BENEFIT MARGINAL ANALYSIS Consider... Slide 8 1 - 7 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show The Economics Perspective Consider... CHOICE RATIONAL BEHAVIOR COST-BENEFIT MARGINAL ANALYSIS Slide 9 1 - 8 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show WHY STUDY ECONOMICS plus many modern contributors... Adam Smith David Ricardo John Stuart Mill Karl Marx John Maynard Keynes Economics for Citizenship Professional & Personal Applications Slide 10 1 - 9 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show ECONOMIC METHODOLOGY Scientific Method Hypothesis Testing Theory Law Principles Models Slide 11 1 - 10 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show Theories Facts Policy Economics Theoretical Economics ECONOMIC METHODOLOGY Slide 12 1 - 11 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show Analytical Economics Terminology Generalizations ECONOMIC METHODOLOGY Slide 13 1 - 12 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show Analytical Economics Terminology Generalizations Other-Things-Equal ceteris paribus ECONOMIC METHODOLOGY Slide 14 1 - 13 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show Analytical Economics Terminology Generalizations Other-Things-Equal ceteris paribus Abstractions ECONOMIC METHODOLOGY Slide 15 1 - 14 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show Analytical Economics Terminology Generalizations Other-Things-Equal ceteris paribus Abstractions Graphical Expression ECONOMIC METHODOLOGY Slide 16 1 - 15 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show ECONOMIC POLICY STATING GOALS POLICY OPTIONS EVALUATION Slide 17 1 - 16 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show What are our goals and objectives? ECONOMIC GOALS Slide 18 1 - 17 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show Economic Growth Full Employment Economic Efficiency Price-Level Stability Economic Freedom Equitable Distribution Economic Security Balance of Trade ECONOMIC GOALS Slide 19 1 - 18 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show MACROECONOMICS... Slide 20 1 - 19 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show MICROECONOMICS... MACROECONOMICS... Slide 21 1 - 20 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show Positive Economics Absolute Facts Normative Economics What Ought to be MICROECONOMICS... MACROECONOMICS... Slide 22 1 - 21 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show Biases Loaded Terminology PITFALLS TO OBJECTIVE THINKING Slide 23 1 - 22 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show Biases Loaded Terminology Definitions PITFALLS TO OBJECTIVE THINKING Slide 24 1 - 23 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show Biases Loaded Terminology Definitions Fallacy of Composition PITFALLS TO OBJECTIVE THINKING Slide 25 1 - 24 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show Biases Loaded Terminology Definitions Fallacy of Composition Causation Fallacies PITFALLS TO OBJECTIVE THINKING Slide 26 1 - 25 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show Biases Loaded Terminology Definitions Fallacy of Composition Causation Fallacies Post Hoc Fallacy PITFALLS TO OBJECTIVE THINKING Slide 27 1 - 26 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show PITFALLS TO OBJECTIVE THINKING Biases Loaded Terminology Definitions Fallacy of Composition Causation Fallacies Post Hoc Fallacy Chapter Conclusions Slide 28 economics economic perspective marginal analysis scientific method theoretical economics principles generalizations other-things-equal assumption policy economics tradeoffs macroeconomics aggregate microeconomics positive economics normative economics fallacy of composition after this, therefore because of this fallacy ENDBACK Copyright McGraw-Hill/Irwin 2002 Slide 29 1 - 28 Copyright McGraw-Hill/Irwin 2002 The Economics Perspective Why Study Economics Economic Methodology Macroeconomics and Microeconomics Pitfalls to Objective Thinking Key Terms Previous Slide Next Slide End Show THE ECONOMIZING PROBLEM CHAPTER 2 COMING SOON