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Resumen Economía – Primer Parcial.
Economía:
* Ciencia que estudia los métodos más eficaces para satisfacer las necesidades humanas materiales, mediante el empleo de bienes escasos. (diccionario)
* Ciencia que se ocupa de estudiar las relaciones causales entre los medios y los fines que las personas eligen. -> consecuencias a largo y corto plazo (El Proceso Económico)
* Relaciónentre las causas y los efectos entre los medios y los fines que las personas eligen perseguir. Se basa en las acciones que las personas hacen sin querer y lo que estas provocan.

The Economic Way of Thinking.
Chapter 1- The Economic Way of Thinking

Social cooperation.
Example -> Rush Hour traffic.
* The dominant Characteristic of rush hour traffic is not jam but movement, which is whypeople venture into it day after day and almost always reach their destinations. It doesn’t work perfectly, of course.
* The remarkable fact at which we should learn to marvel is that it works at all.
* Drivers all pursue their separate objectives, with an almost single-minded devotion to their own interests, not necessarily because they are selfish but simply because none of them knowsanything about the objectives of the others.
* The importance of social cooperation is that without institutions that encourage cooperation, we couldn’t enjoy the benefits of civilization.

Adam Smith
* Smith lived in an age when most educated people believed that only the careful planning of political rulers should prevent a society from degenerating into disorder and poverty. Smith didnot agree. But in order to refute the accepted opinion of his day, he dad to describe the process of social coordination that he saw operating in society- a process that not only functioned, in his judgment, without the constant attention of government but also worked so powerfully that it often canceled the effects of contrary governmental policies.
* Adam Smith wrote the book: An Inquiry intothe Nature and Causes of the Wealth of Nations.

The Skill of The Economist.
* The theory of economics does not furnish a body of settled conclusions immediately applicable to policy. It is a method rather than a doctrine, an apparatus of mind, a technique of thinking which helps its possessor to draw correct conclusions.
* “Technique of thinking” -> a set of concepts derived from onefundamental presupposition: all social phenomena emerge from the actions and interaction of individual who are choosing in response to expected additional benefits and costs to themselves.
* Economics is not only about money and profit, business and finance. Nor is it only a study of people’s competitive behaviors. Economics studies people’s choices and the unintended consequences – theunanticipated side effects – of their choices.
* Economic theory does not assume that people are selfish or materialistic or shortsighted or irresponsible or interested exclusively in money.
* Individuals choose on the basis of expected benefits and costs to themselves.
* Everything depends on what people take to be benefits and costs and the relative values they place upon these benefitsand costs. Economic theory does not deny the reality or importance of generosity, public spirit, or any other virtue. Economists would be foolish if they denied the facts.
* 1. Actions: the fact or process of doing something, typically to achieve an aim

2. Interactions: reciprocal action or influence

3. Consequences: a result or effect of an action or condition
Economic Way of Thinking(three aspects)
1. Actions: the fact or process of doing something, typically to achieve an aim

2. Interactions: reciprocal action or influence

3. Consequences: a result or effect of an action or condition
Economic Way of Thinking (three aspects)
The economic way of thinking, when put to work, displays three aspects, on focusing on actions, the second on interactions, and the third on...
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