Holly Lippke Fretwell, M.S.
Tuesday/Thursday 9-3 or by appointment
Guideposts to Economic Thinking
- Resources are scarce. Tradeoffs must be made.
- Individuals use economizing behavior to get the most from their limited resources.
- Incentives matter.
- Individuals make decisions at the margin.
- Information helps us make better decisions but is costly to acquire.
- There are consequences to economic actions.
- The value of goods and services is subjective.
- The test of a theory is its ability to predict.
(Adapted from Gwartney, Stroup, Sobel, and Macpherson. 2003. Microeconomics: Private and Public Choice. Thomson/South-Western Publishers. Pages 9-15)