ARE 1150 1nd Edition Lecture 2 Outline of Last Lecture I. Define Economics II. Key Featuresa. Scarcity and choiceb. Purposeful behaviorc. Marginal analysis III. Marginal analysis in action: optimal pollution abatementOutline of Current Lecture IV. Micro vs. MacroV. Positive vs. Normative economics VI. Minimum Wage Debate VII. Individual’s Economizing ProblemCurrent LectureIV. Micro vs. MacroA. Microeconomics = decision-making by a characterizes of individual units of economy i. The output of an individual form at a given market price of their product B. Macroeconomics = exams the economy as a whole or its aggregatesi. Total output of economy (GDP)ii. Change in total consumer expenditure during the last quarterV. Positive vs. Normative economicsA. Positive = deals with what economy is actually likei. This studies facts and cause and effect relationships B. Normative = requires value judgments of what the economy should be likeii. Is informed by outcomes of research from positive economics VI. Minimum wage debate A. Minimum wage is made by federal and state government B. Minimum wage hike spurs optimism and debatea. Prosi. People get same amount of moneyii. Helps povertyb. ConsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.i. Infringes on private companies ability to payii. All people may not put in the same effort, so the minimumwage isn’t fair iii. Paying higher price for labor and more workers1. Companies can cut back hours/employees because they cant afford the new minimum wage C. Individuals economizing problema. Limited income and unlimited wants b. Budget line (or budget constraint): a curve that shows various combinations of two products a consumer can purchase with a specific money incomec. Effect on which the budges line of: (1) change in income, and (2) change in pricesThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a