Chapter 2 Summary

This chapter has introduced the neoclassical perspective in modern economics. The neoclassical model is a major source of the central ideas of microeconomics and will be crucial for chapters to come.

The main example of economic reasoning we have given in this chapter is neoclassical, and it should give you a taste of economics and prepare you to be alert for some common themes in economics. Here are some common themes you will see again and which are especially characteristic of neoclassical economics:

use of "models"
concern with scarcity and choice
the concept of opportunity cost
the assumption of rational and self-interested behavior
positive versus normative economics

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