Guide # 1

Gary Becker, The Economic Approach to Human Behavior

What distinguishes economics from the rest of the social sciences?

What are the main assumptions economists make?

What does "maximizing behavior" mean?

What does "stable preferences" mean? Can you think of a situation when preferences are not stable?

What does market equilibrium mean?

What is death according to the economic approach and why?

How is marriage explained by this approach?

What is an ad hoc explanation? Why should or should not we use it?

What tasks are left for the other social sciences according to Becker?