Difference between Microeconomics and Macroeconomics.
Micro: focusing on small things: individual,company choices
Macro: global things, aggregation of economy, individual consequences
Incentive can change one's action
Example:Organ sales.If one is offered relatively less than what he gives,he will certainly not sell organs because he gets little and have to maim himself,but if he can get 5 million bucks, he will do it as long as he doesn't die.
Essay"The miracle by which we live" shows that it is trillions of tiny know-hows who actually found the free market and nation;presidents only have a little bit impact in history.
Economic Way of Thinking:
Example Obesity: Is it caused by McDonald's? Nope.
We ourselves choose to be fat because (1)food,especially fast food,is cheap(2)cost of being fat is decreasing[improvement in medical treatment](3)research show that it's better to be mildly fat(I wonder why)
Possible biological Explanation:Ancient people didn't have enough food,especially in winter, due to lack of technology,so people needed fat to survive.
Reasons to study economics
(1)interesting
(2)important to know conception and facts,such as intention isn't equal to result
(3)we need to understand facts. Example:Some people claim to tax more on soda to get rid of obesity but in fact soda only contributes 1% to obesity.
Psychology personality
Type C Scientific reasoning
Type M Emotional
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