Microeconomic theory
Download
1 / 13

- PowerPoint PPT Presentation


  • 395 Views
  • Updated On :

Microeconomic Theory. "the purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists." Joan Robinson. “Economics is a study of mankind in the ordinary business of life” Alfred Marshall.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about '' - makya


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Slide2 l.jpg

"the purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists."

Joan Robinson



Slide4 l.jpg

“Economics is what economists do” of life”

Jacob Viner

“Economics is common sense made difficult”

As seen by an undergraduate student


Slide5 l.jpg


Economics is l.jpg
Economics is: respond to incentives.” The rest is commentary.

The science of making decisions in the presence of scarce resources.


Why theory l.jpg
Why theory? respond to incentives.” The rest is commentary.

  • “Statistics in the absence of theory is dangerous to your intellectual health!”

    Eugene Silberberg


Economists use models l.jpg
Economists use models respond to incentives.” The rest is commentary.

  • Models are not judged by their realism but by their usefulness

  • What is the most useless map in the world?


To be useful a model has to be refutable l.jpg
To be useful a model has to be refutable respond to incentives.” The rest is commentary.


Ad hoc theories are not useful l.jpg
ad hoc respond to incentives.” The rest is commentary. theories are not useful

  • An ad hoc theory explains only one case

  • Why do Americans drive larger cars than Europeans?


As if l.jpg
as if respond to incentives.” The rest is commentary.

  • Does a pool player need to know the laws of trigonometry and physics to win?


As if13 l.jpg
as if respond to incentives.” The rest is commentary.

  • “…getting out of bed in the morning and making breakfast involves more complex decisions than the average game of chess. (Will that fries egg kill me in twenty-eight years?)”

    Charles Wheelan


ad