The Basics of Economics (Chapter 1)
|
|
- Lynne Rich
- 6 years ago
- Views:
Transcription
1 The Basics of Economics (Chapter 1) 0
2 Billions of people could benefit from better economic policies. Millions are dying because of bad ones. Sometimes the logic of economics is so compelling that it s impossible for economists not to take a stand. Tim Hartford (author of The Undercover Economist) 1
3 Economics The study of how society manages its scarce resources by making decisions. 2
4 Are these scarce? CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 3
5 Yes! All goods and services are scarce!!! CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 4
6 Scarcity Since all resources in the world are limited, we are limited into how much we can produce. CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 5
7 Good Service To get the benefit, you must actively use it To get the benefit, someone or something does it for you 6
8 So back to what economics is CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 7
9 Lets pretend you have found a new tropical island that is inhabited by strange individuals...these people need so much help that they gave you the power to make all of their societal decisions. Currently, the society relies on themselves and their surroundings. Based on all of this info, what are three questions to ask yourself when deciding what is best for society? 8
10 9
11 MICROECONOMICS is based on the same concept but the decisions that are made are on a much smaller scale (Individual, Firms, etc). CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 10
12 1. Key Economic Questions Society faces many decisions: What goods and services will be produced? Who will produce the goods and services? Who will consume the goods and services?
13 2. The Factors of Production The resources that are used to produce goods and services LAND LABOR CAPITAL
14 3. Physical vs. Human Capital Physical Capital are the man made assets that are used in production. Ex. shovel, nail, plastic, etc. Human Capital is the knowledge that is needed in production. Ex. a doctor administering an X-Ray, Mr. Barber teaching the most awe-inspiring lessons in the history of education.
15 4. Market A group of buyers (consumers) and sellers (producers) of a particular good or service
16 5. The People Who Make Up A Market Households Consumer of goods and services. They ARE the factors of production. Firms Producers of goods and services. They USE the factors of production.
17 Household or Firm? 2007 Thomson South-Western
18 Household or Firm? 2007 Thomson South-Western
19 6. Society and Scarce Resources The management of society s resources is important because resources are scarce. Scarcity... means that society has limited resources and therefore cannot produce all the goods and services people wish to have.
20 Basic Principles of Economics 2007 Thomson South-Western
21 Principle #1: People Face Trade-offs Also known as costs What you give up because of a decision Efficiency v. Equity Brain Drain! Efficiency If society means decides society to gets be more the most equitable, that it can from its scarce what resources. will happen to efficiency? Equity means the benefits of those resources are distributed evenly among the members of society.
22 Result Equity Efficiency
23 Principle #2: The Cost of Something Is What You Give Up to Get It. Basketball star LeBron James decided to give up college and play pro basketball. So, what was his cost? Do you think that was the correct decision?
24 Opportunity Cost The MOST desirable alternative that is given up because of a decision
25 Which is the opportunity cost of this decision? You decide to buy a $50,000 car.
26 High Opportunity Cost Low Opportunity Cost Should I rob a bank? Should I steal one strawberry from the produce section at Jewel?
27 Principle #3: Rational People Think at the Margin. Marginal changes are small, incremental adjustments to a decision. Example: Should I hire one more additional worker? People make decisions by comparing costs and benefits at the margin.
28 Principle #4: When making decisions, people use the Cost Benefit Analysis When thinking at the margin, you only add one more unit if the marginal benefit (MB) > marginal cost (MC). Keep adding units until the MB = MC MC should never be greater than the MB. Benefits can also be called incentives.
29 What if. Marginal Cost = $2,000 Marginal Benefit = You play the game for a month and quickly lose interest (is that really worth $2,000?)
30 Principle #5: Trade Can Make Everyone Better Off. Trade allows people to specialize in what they do best.
31 Principle #6: Markets Are Usually a Good Way to Organize Economic Hey Activity. Congress, that s smart because I am A market economy is an economy only going that to allocates produce I will let the citizens what keeps my business resources decide how through to answer the decentralized decisions of running. So, most of many the firms key economic and households as society they will interact get what in questions markets for goods and services. they want.
32 Principle #6: Markets Are Usually a Good Way to Organize Economic Activity. Adam Smith made the invisible hand theory. Because households and firms look at prices when deciding what to buy and sell, they unknowingly regulate the market.
33 Principle #7: Governments Can Sometimes Improve Market Outcomes. Markets work only if property rights are enforced. Property rights are the ability of an individual to own and exercise control over a scarce resource Market failure occurs when the market fails to allocate resources efficiently. When the market fails (breaks down) government can intervene to promote efficiency and equity.
34 Principle #7: Governments Can Sometimes Improve Market Outcomes. Market failure may be caused by: an externality, which is the impact of one person or firm s actions on the well-being others. market power, which is the ability of a single person or firm to unduly influence market prices.
Principles of Economics, Fourth Edition N. Gregory Mankiw
PowerPoint Lecture Presentation to accompany Principles of Economics, Fourth Edition N. Gregory Mankiw Prepared by Kathryn Nantz and Laurence Miners, Fairfield University. Economy...... The word economy
More informationTen Principles of Economics. Chapter 1
Ten Principles of Economics Chapter 1 Economy...... The word economy comes from a Greek word for one who manages a household. A household and an economy face many decisions: Who will work? What goods and
More informationTEN PRINCIPLES OF ECONOMICS. The word Economy... An individual economic agent faces many decisions: Intro Macroeconomic Theory Professor Minseong Kim
TEN PRINCIPLES OF ECONOMICS Chapter 1 The word Economy... Comes from a Greek word for one who manages a household. An individual economic agent faces many decisions: Should I go to college or should I
More informationTen Principles of Economics
Ten Principles of Economics Economy...... The word economy comes from a Greek word for one who manages a household. 2 TEN PRINCIPLES OF ECONOMICS A household and an economy face many decisions: Who will
More informationTen Principles of Economics. Principles of Economics. Economy... Scarcity... N. Gregory Mankiw. A household and an economy face many decisions:
A Lecture Presentation in PowerPoint to Accompany Principles of Economics Second Edition by N. Gregory Mankiw Ten Principles of Economics by Greg Mankiw Chapter 1 Copyright by Harcourt, Inc. Prepared by
More informationTen Principles of Economics
Ten Principles of Economics Economy...... The word economy comes from a Greek word for one who manages a household. A household and an economy face many decisions: Who will work? What goods and how many
More informationEconomics is the study of how society manages and allocates its scarce resources. Scarcity refers to society s limited number of resources
Economics Notes 10 Lessons From Economics Chapter 1 What is Economics? Economics is the study of how society manages and allocates its scarce resources. Scarcity refers to society s limited number of resources
More information1 Ten Principles of Economics CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 0
1 Ten Principles of Economics CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 0 In this chapter, look for the answers to these questions: What kinds of questions does economics address? What are the principles of
More informationTen Principles of Economics
C H A P T E R 1 Ten Principles of Economics Economics P R I N C I P L E S O F N. Gregory Mankiw Premium PowerPoint Slides by Ron Cronovich 2009 South-Western, a part of Cengage Learning, all rights reserved
More informationMacroeonomics. Ten Principles of Economics. In this chapter, look for the answers to these questions: What Economics Is All About. N.
C H A P T E R 1 In this chapter, look for the answers to these questions: Ten Principles of Economics P R I N C I P L E S O F Macroeonomics N. Gregory Mankiw Premium PowerPoint Slides by Ron Cronovich
More informationMicroeconomics. Ten Principles of Economics. Principles of. N. Gregory Mankiw. Sixth Edition. Premium PowerPoint Slides by Ron Cronovich
N. Gregory Mankiw Microeconomics Principles of Sixth Edition 1 Ten Principles of Economics Premium PowerPoint Slides by Ron Cronovich In this chapter, look for the answers to these questions: What kinds
More informationTen Principles of Economics
C H A P T E R 1 Ten Principles of Economics Economics P R I N C I P L E S O F N. Gregory Mankiw Premium PowerPoint Slides by Ron Cronovich 2009 South-Western, a part of Cengage Learning, all rights reserved
More informationThe principles of HOW PEOPLE MAKE DECISIONS
1 Ten Principles of Economics P R I N C I P L E S O F MICROECONOMICS FOURTH EDITION N. GREGORY MANKIW Premium PowerPoint Slides by Ron Cronovich 2007 update 2008 Thomson South-Western, all rights reserved
More informationPowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University
PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University 1 Ten Principles of Economics PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University 2 Ten Principles
More informationName: Date: 1. The study of a single firm and how it determines prices would fall under: A) macroeconomics. B) microeconomics. C) economic growth. D)
Name: Date: 1. The study of a single firm and how it determines prices would fall under: A) macroeconomics. B) microeconomics. C) economic growth. 2. Macroeconomics deals with: A) bits and pieces of the
More informationTen Principles of Economics
Ten Principles of Economics. Economy...... The word economy comes from a Greek word for one who manages a household. A household and an economy face many decisions: υ Who will work? food, clothing, computers,
More informationPowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University
PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University 1 1 Ten Principles of Economics PowerPoint Slides prepared by: Andreea CHIRITESCU Eastern Illinois University 2 Ten Principles
More informationTen Principles of Economics
Wojciech Gerson (1831-1901) Seventh Edition Principles of Economics N. Gregory Mankiw CHAPTER 1 Ten Principles of Economics In this chapter, look for the answers to these questions What kinds of questions
More informationTen Principles of Economics
Wojciech Gerson (1831-1901) Seventh Edition Principles of Macroeconomics N. Gregory Mankiw The principles of HOW PEOPLE MAKE DECISIONS CHAPTER 1 Ten Principles of Economics lithian/shutterstock.com In
More informationTen Principles of Economics
Seventh Edition Principles of Economics N. Gregory Mankiw CHAPTER 1 Ten Principles of Economics In this chapter, look for the answers to these questions What kinds of questions does economics address?
More informationActivator Chapter 1. List the problem that each of the following faced:
Activator Chapter 1 During the holiday season of 1996, a children's toy appeared on Good Morning America. The toy, produced by Mattel, had sat on the shelves with very little sales until it appeared on
More informationWEEK 4: Economics: Foundations and Models
WEEK 4: Economics: Foundations and Models Economics: study of the choices people and societies make to attain their unlimited wants, given their scarce resources Market: group of buyers and seels of good
More information1 TEN PRINCIPLES OF ECONOMICS
1 TEN PRINCIPLES OF ECONOMICS LEARNING OBJECTIVES: By the end of this chapter, students should understand: that economics is about the allocation of scarce resources. that individuals face tradeoffs. the
More informationWe have to give up one thing to get another. Decisions require comparing costs and benefits of alternatives
Principle #1: People Face Tradeoffs We have to give up one thing to get another Task: As a group, make a list of the tradeoffs you ve made recently. Discuss how tradeoffs affect your everyday life. Determine
More informationIntroduction to Economics The Basic Concepts of Economics
Introduction to Economics The Basic Concepts of Economics Introduction Microeconomics = The study of how individuals make decisions and how these decisions interact. Macroeconomics = The study of the overall
More informationChapter 2: Economic Systems. 1. Answering three Economic Questions. 2. The Free Market 3. Centrally Planned Economics 4.
1 Chapter 2: Economic Systems 1. Answering three Economic Questions? 2. The Free Market 3. Centrally Planned Economics 4. Mixed Economics 1. Answering three Economic Questions What goods and services should
More informationPrinciples of BABY THOMAS 2016
Principles of 1 UNIT I INTRODUCTION TO MACROECONOMICS Learning Objectives 1. Introduction to economics, meaning and definition of economics, Principles of economics 2. Economic models, the circular flow
More informationIntroduction to Economics
Introduction to Economics The foundation for economics as a discipline of systematic study was laid in 1776, when Adam Smith (1723-1790) published An Inquiry Into the Natures and Causes of the Wealth of
More informationPrinciples of Economics
Principles of Economics Ten Principles of Economics Jiaming Mao Fall 2015 Principle 1: People face tradeoffs All decisions involve trade offs. To get one thing we like, we usually have to give up another
More informationPrinciples of Economics
Principles of Economics Ten Principles of Economics Jiaming Mao Fall 2015 Principle 1: People face tradeoffs All decisions involve trade offs. To get one thing we like, we usually have to give up another
More informationUnit 2 Supply and Demand
Unit 2 Supply and Demand -Study Guide- Answer, Explain and define the following: 1) Demand 2) Consumer 3) Supply 4) Producer 5) Subsidy 6) Give examples of goods that would have inelastic demand 7) Give
More informationChapter 1: Ten Principles of Economics Principles of Economics, 4 th Edition N. Gregory Mankiw Page 1
Page 1 1. Introduction a. My comments in these chapter summaries are in italics. b. For testing purposes, you are responsible for material covered in the text, but not for my comments. c. The margins in
More informationPRINCIPLES OF ECONOMICS. J. Mao
PRINCIPLES OF ECONOMICS J. Mao Principle #1: People Face Tradeoffs All decisions involve trade offs. To get one thing we like, we usually have to give up another thing we like. Xbox or Iphone 6 Playing
More informationThe Foundations of Economics. Chapter 1
The Foundations of Economics Chapter 1 A Social Science Study of people in society and how they interact with each other Earth= Finite have limited resources use resources to produce goods and services
More informationChapter 1: Ten Principles of Economics Principles of Economics, 8 th Edition N. Gregory Mankiw Page 1
Page 1 I. Introduction A. Use the margins in your book for note keeping. B. My comments in these chapter summaries are in italics. C. For testing purposes, you are responsible for material covered in the
More information- Scarcity leads to tradeoffs - Normative statements=opinion - Positive statement=fact with evidence - An economic model is tested by comparing its
Macroeconomics Final Notes: CHAPTER 1: What is economics? We want more than we can get. Our inability to satisfy all of our wants is called scarcity. All resources are finite even if they are abundant.
More informationChapter 1. Preliminaries. Introduction. What is math? History? Music? What is ECONOMICS? What is MICROECONOMICS? Chapter 1 2
Chapter 1 Preliminaries Introduction What is math? History? Music? What is ECONOMICS? What is MICROECONOMICS? Chapter 1 2 Themes of Microeconomics Microeconomics deals with ( ) Limited budgets Limited
More informationUnit 2 Supply and Demand
Unit 2 Supply and Demand Microeconomics - analyzes the Small Unit economic behavior of Individuals, Households and Firms to understand their decision-making process. -America s Free Enterprise- An economy
More informationWhat Economics Is. Chapter 1: Economics and Economic Reasoning. What Economics Is. What Economics Is. What Economics Is.
Chapter 1: Economics and Economic Reasoning Prepared by: Kevin Richter, Douglas College Charlene Richter, British Columbia Institute of Technology Economics is the study of how individuals, firms, and
More informationEC 201 Lecture Notes 1 Page 1 of 1
EC 201 Lecture Notes 1 Page 1 of 1 ECON 201 - Macroeconomics Lecture Notes 1 Metropolitan State University Allen Bellas The textbooks for this course are Macroeconomics: Principles and Policy by William
More informationEC202- Macroeconomics. Aaron Jenkins Business Management Linn-Benton Community College Winter 2018
EC202- Macroeconomics Aaron Jenkins Business Management Linn-Benton Community College Winter 2018 If not here, where would you be? What s your opportunity cost? Opportunity cost = highest valued alternative
More informationPRINCIPLES OF MACROECONOMICS. Chapter 1 Welcome to Economics!
PRINCIPLES OF MACROECONOMICS Chapter 1 Welcome to Economics! 2 Chapter Outline 1.1 Three Key Economic Ideas 1.2 The Economic Problem That Every Society Must Solve 1.3 Economic Models 1.4 Microeconomics
More informationINTRODUCTION. Choices. Supply and Demand. Economics. Introduction Guide Questions to Consider
INTRODUCTION Introduction Guide Questions to Consider Choices What affects how people make choices? Why do ECONs study choices? Supply and Demand What does it mean when ECONs say "supply and demand"? How
More informationCH 1: Economics and Economic Reasoning
CH 1: Economics and Economic Reasoning What is Economics? Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanism, social customs, and political
More informationWHAT IS ECONOMICS? Understanding Economics Chapter 1
WHAT IS ECONOMICS? Understanding Economics Chapter 1 Chapter 1, Lesson 1 Scarcity and the Science of Economics Needs vs. Wants! Need a basic requirement for survival, such as food, clothing and shelter.!
More informationAmerican Free Market System
Unit 7a Economics American Free Market System Introduction The U.S. economy Challenges in a free market Factors of Production Supply and Demand Business organizations Economic systems The Circular flow
More informationECONOMICS 103. Dr. Emma Hutchinson, Fall 2017
ECONOMICS 103 Dr. Emma Hutchinson, Fall 2017 http://web.uvic.ca/~ehutchin/teach/103/103f17.html Reminder: familiarize yourself with all course policies by reading the course outline and all posted info.
More informationChapter 1 Economics: Foundations and Models
Microeconomics 6 th edition Chapter 1 Economics: Foundations and Models Modified by Yulin Hou For Principles of Microeconomics Florida International University Fall 2017 # What is this class about? People
More informationMaking choices in a world of scarcity means we must pass up some goods and services. Every decision we make is a trade-off:
Lecture Notes Chapter 1 - The Art and Science of Economic Analysis Introduction Economics is about choices. Definition: Scarcity: A resource is scarce when it is not freely available - when its price exceeds
More informationChapter One (cont ) Economics is defined as: The science that studies the choices people make in a world of scarcity
Economics Review Chapter One Wants exceed resources to fill wants Therefore scarcity exists Therefore we must make choices Every time we make a choice, we leave behind an opportunity cost, the most likely
More informationECONOMICS. Chapter 4 The Market Strikes Back
Lesson 1 ECONOMICS Chapter 4 The Market Strikes Back Review: Supply and Demand The previous lesson focused on demand and supply, we studied the demand curve and the supply curve P P S D Quantity Quantity
More informationChapter 13. Microeconomics. Monopolistic Competition: The Competitive Model in a More Realistic Setting
Microeconomics Modified by: Yun Wang Florida International University Spring, 2018 1 Chapter 13 Monopolistic Competition: The Competitive Model in a More Realistic Setting Chapter Outline 13.1 Demand and
More informationChapter 1: The Ten Lessons in Economics
Textbook Notes Page 1 Chapter 1: The Ten Lessons in Economics Saturday, 25 May 2013 1:09 PM Economics: The study of how society manages its scarce resources Individual Decision-Making Lesson 1: People
More informationFramingham State College. Principles Of Microeconomics. Problem Set Number 1. Ten Principles of Economics Quiz
Framingham State College Principles Of Microeconomics Problem Set Number 1 Ten Principles of Economics Quiz You My Name is? Introduction Q1. We live in a world of? A1. Scarcity Q2. What did Alfred Marshall
More informationDo not open this exam until told to do so. Solution
Do not open this exam until told to do so. Department of Economics College of Social and Applied Human Sciences K. Annen, Fall 003 Final (Version): Intermediate Microeconomics (ECON30) Solution Final (Version
More informationEconomics Lecture notes- Semester 1:
Economics Lecture notes- Semester 1: Lecture 1: What is economics? The word economy comes from the Greek word meaning one who manages a household. Households and economies have much in common; both face
More informationDOC - ECONOMISTS MEASURE OPPORTUNITY COST
01 February, 2018 DOC - ECONOMISTS MEASURE OPPORTUNITY COST Document Filetype: PDF 238.52 KB 0 DOC - ECONOMISTS MEASURE OPPORTUNITY COST Economic costs are usually considered when a company must make a
More informationECON MACROECONOMIC PRINCIPLES Instructor: Dr. Juergen Jung Towson University. J.Jung Chapter Introduction Towson University 1 / 69
ECON 202 - MACROECONOMIC PRINCIPLES Instructor: Dr. Juergen Jung Towson University J.Jung Chapter 2-4 - Introduction Towson University 1 / 69 Disclaimer These lecture notes are customized for the Macroeconomics
More informationCURRICULUM COURSE OUTLINE
CURRICULUM COURSE OUTLINE Course Name(s): Grade(s): 11-12 Department: Course Length: Pre-requisite: Microeconomics Social Studies 1 Semester Teacher Approved Textbook/Key Resource: McConnell and Brue Microeconomics
More informationUnit I: Basic Economic Concepts
Unit I: Basic Economic Concepts What is Economics in General? Economics is the science of scarcity. Scarcity is the condition in which our wants are greater than our limited resources. Since we are unable
More informationEconomics for Business Decision Making
Week 1: Explain that: People are rational Consumers and firms use as much of the available information as they can to achieve their goals rational individuals weigh the benefits and costs of each action,
More informationSeptember 26, 2011 Lecture Notes
September 26, 2011 Lecture Notes The Market System: Basics Market Definition Price rationing device: information and incentive for econ decisions. "Invisible Hand" Property Rights Money Role of Government
More informationProduction Possibilities, Opportunity Cost, and Economic Growth
Chapter 2 Production Possibilities, Opportunity Cost, and Economic Growth CHAPTER SUMMARY The What, How and For Whom are introduced as the fundamental economic questions that must be addressed by all societies.
More informationD AY 2 W E D N E S D AY, J A N U A RY 6 TH
ECONOMICS D AY 2 W E D N E S D AY, J A N U A RY 6 TH OPENER: DAY 2, JANUARY 6 TH On a clean sheet of paper, write the following heading: Your name Today s Date Block # Assignment # Assignment Title: Opener
More informationEcon Department Final. Unit One Fundamentals of Economics Prepping for Success!
Econ Department Final Unit One Fundamentals of Economics Prepping for Success! Econ Department Final Exam Your Economics Departmental Final Exam is cumulative and will count as 5% of your class grade.
More informationProduction Possibilities, Opportunity Cost, and Economic Growth
Chapter 2 Production Possibilities, Opportunity Cost, and Economic Growth CHAPTER SUMMARY The What, How and For Whom questions are introduced as the fundamental economic questions that must be addressed
More informationFull file at Production Possibilities, Opportunity Cost, and Economic Growth
Chapter 2 Production Possibilities, Opportunity Cost, and Economic Growth CHAPTER SUMMARY The What, How and For Whom questions are introduced as the fundamental economic questions that must be addressed
More informationThings people like and desire.
1 Wants 1 Things people like and desire. 2 Needs 2 Things you must have to live. 3 Scarcity 3 When there is not enough for all who want it. 4 Choice 4 To make a decision. 5 Goods 5 Things that can satisfy
More informationChapter 2: Economic Systems Section 2
Chapter 2: Economic Systems Section 2 Objectives 1. Explain why markets exist. E3, 5, 9 2. Analyze a circular flow model of a free market economy. E6, 3. Describe the self-regulating nature of the marketplace.
More informationExchange and Markets
Chapter Summary 3 Exchange and Markets This chapter explores specialization and exchange as well as the virtues and shortcomings of markets. We also discussed the role of government in a market economy.
More informationClick to return to In this Lesson
In This Lesson I Chapter 1 What Economics is About Paul Schneiderman, Ph.D., Professor of Finance & Economics, Southern New Hampshire University 2011 South Western/Cengage Learning Goods and Bads and Resources
More informationLesson 1: How Prices Work. Essential Question: How do prices help determine What, How, and For Whom to produce?
Prices Chapter 6 Lesson 1: How Prices Work Essential Question: How do prices help determine What, How, and For Whom to produce? Price The monetary value of a product as established by supply and demand
More informationWhat Economics is About?
What Economics is About? Ch 1, Economics 11e, Roger A. Arnold Scarcity Economics is a social science And every society faces the problem of scarcity Unlimited wants (of humans) VS Limited resources (e.g.
More informationFOR YOUR REVIEW ANSWER KEY
FOR YOUR REVIEW ANSWER KEY CHAPTER 2 SCARCITY, TRADE-OFFS, AND PRODUCTION POSSIBILITIES SECTION 2.1 THE PRODUCTION POSSIBILITIES CURVE 1. a. b. 1 side of beef; 6 kegs of beer; 9 kegs of beer c. 35 kegs
More informationUnit I: Basic Economic Concepts
Unit I: Basic Economic Concepts What is Economics in General? Economics is the science of scarcity. Scarcity is the condition in which our wants are greater than our limited resources. Since we are unable
More informationCHAPTER 2. 4) Taxes cause: a) Market distortions b) Reduce incentives to work c) Decrease wealth creating transactions d) All of the above ANS: D
CHAPTER 2 1) When the market is in equilibrium, a) Total surplus is minimized b) Total surplus is maximized without government intervention c) Government maximizes total revenue 2) The difference between
More informationReading Essentials and Study Guide
Lesson 3 Using Economic Models ESSENTIAL QUESTION In what ways do people cope with the problem of scarcity? Reading HELPDESK Academic Vocabulary mechanism process or means by which something can be accomplished
More informationECONOMICS 103. Dr. Emma Hutchinson, Fall 2018
ECONOMICS 103 Dr. Emma Hutchinson, Fall 2018 http://web.uvic.ca/~ehutchin/teach/103/103f18.html Reminder: familiarize yourself with all course policies by reading the course outline and all posted info.
More informationLecture 1: Introduction
Lecture 1: Introduction Yulei Luo SEF of HKU January 19, 2013 Luo, Y. (SEF of HKU) ECON1002C/D January 19, 2013 1 / 16 Economics, Microeconomics and Macroeconomics Economics: The study of the choices people
More informationEconomics Guided Reading Chapter Two Economic Systems Section 1 Answering the Three Economic Questions
Name: Date: Block # Economics Guided Reading Chapter Two Economic Systems Section 1 Answering the Three Economic Questions Directions Following the page and heading prompts to read your Economics textbook
More informationProduction Possibilities, Opportunity Cost, and Economic Growth
Chapter 2 Production Possibilities, Opportunity Cost, and Economic Growth CHAPTER SUMMARY The What, How and For Whom questions are introduced as the fundamental economic questions that must be addressed
More informationSupply. Understanding Economics, Chapter 5
Supply Understanding Economics, Chapter 5 What is Supply? Chapter 5, Lesson 1 What is Supply?! Supply the amount of a product a producer or seller would be willing to offer for sale at all possible prices
More informationECON MACROECONOMIC PRINCIPLES Instructor: Dr. Juergen Jung Towson University. J.Jung Chapter Micro Basics Towson University 1 / 51
ECON 202 - MACROECONOMIC PRINCIPLES Instructor: Dr. Juergen Jung Towson University J.Jung Chapter 2-4 - Micro Basics Towson University 1 / 51 Disclaimer These lecture notes are customized for the Macroeconomics
More informationEastern Mediterranean University Faculty of Business and Economics Department of Economics Spring Semester
Eastern Mediterranean University Faculty of Business and Economics Department of Economics 2015 16 Spring Semester ECON101 Introduction to Economics I First Midterm Exam Duration: 90 minutes Answer Key
More informationName Economics: Unit One Study Guide Unit One Standards
Name Economics: Unit One Study Guide Unit One Standards Fundamental Economic Concepts SSEF1: The student will explain why limited productive resources and unlimited wants result in scarcity, opportunity
More information6.2- Circular Flow. By: Carter Greene
6.2- Circular Flow By: Carter Greene Kickoff: Grab a chromebook and handout on your way into class Or you may use your own laptop Go to Google Classroom and complete the assignment Opportunity Cost Article
More informationEconomics: Foundations and Models
R. GLENN HUBBARD ANTHONY PATRICK O BRIEN Macroeconomics FOURTH EDITION CHAPTER 1 Economics: Foundations and Models Chapter Outline and Learning Objectives 1.1 Three Key Economic Ideas 1.2 The Economic
More informationCHAPTER 1. What Is Economics? 1.1 The Economic Problem 1.2 Economic Theory 1.3 Opportunity Cost and Choice CONTEMPORARY ECONOMICS: LESSON 1.
CHAPTER 1 What Is Economics? 1.1 The Economic Problem 1.2 Economic Theory 1.3 Opportunity Cost and Choice 1 CONTEMPORARY ECONOMICS: LESSON 1.1 Consider CHAPTER 1 What Is Economics? Why are characters in
More informationEconomics 101. Chris Gan July Economics 101 1
Economics 101 Chris Gan July 2010 Economics 101 1 What is Economics A study of charts, tables, statistics and numbers? Study of rational human behavior in pursuit to fulfill needs and wants Problem we
More informationMankiw Macro Chapter I: Ten Principles of Economics
Mankiw Macro Chapter I: Ten Principles of Economics Introduction to the class. Notes about self Undergraduate, USAID, Graduate, Thailand Personal Details, Biases Contact information, availability, etc.
More informationEconomics 101 Section 5
Economics 101 Section 5 Lecture #17 March 23, 2004 Chapter 7 -The Firms long-run decisions -The Principal-Agent problem Chapter 8 -Perfect Competition - Competition in the Short-Run Lecture Outline Recap
More informationEcon Microeconomics Notes
Econ 120 - Microeconomics Notes Daniel Bramucci December 1, 2016 1 Section 1 - Thinking like an economist 1.1 Definitions Cost-Benefit Principle An action should be taken only when its benefit exceeds
More informationReading Essentials and Study Guide
Lesson 3 Using Economic Models ESSENTIAL QUESTION In what ways do people cope with the problem of scarcity? Reading HELPDESK Academic Vocabulary mechanism process or means by which something can be accomplished
More informationWhat is economics? Economics is the study of how people use the limited economic resources to fulfill their unlimited needs of goods and services
What is economics? Economics is the study of how people use the limited economic resources to fulfill their unlimited needs of goods and services What are the economic resources? (factor of production?)
More informationEconomics : Principles of Microeconomics Spring 2014 Instructor: Robert Munk April 24, Final Exam
Economics 001.01: Principles of Microeconomics Spring 01 Instructor: Robert Munk April, 01 Final Exam Exam Guidelines: The exam consists of 5 multiple choice questions. The exam is closed book and closed
More informationLECTURE NOTES. HCS 112 Fundamentals of economics INTRODUCTION. After completing this part, students should be able to:
INTRODUCTION After completing this part, students should be able to: 1. Define economics. 2. Describe the economic perspective (or economic way of thinking ), including definitions of scarcity, opportunity
More informationLesson 1: What is Supply? Lesson 2: The Theory of Production Lesson 3: Cost, Revenue, and Profit Maximization
Lesson 1: What is Supply? Lesson 2: The Theory of Production Lesson 3: Cost, Revenue, and Profit Maximization 1 5 Supply BIG IDEAS = Responsibility, Choices, Changes, and Relationships Essential Questions:
More informationPrinciples of Microeconomics , 10e (Case/Fair/Oster) TB2 Chapter 2 The Economic Problem: Scarcity and Choice
Principles of Microeconomics, 10e (Case/Fair/Oster) TB2 Chapter 2 The Economic Problem: Scarcity and Choice 2.1 Scarcity, Choice, and Opportunity Cost 1) Production is the process by which A) products
More informationWelcome to the first session of PRBE001. This session will introduce you to the core principles of Economics. Society, businesses and households face
Welcome to the first session of PRBE001. This session will introduce you to the core principles of Economics. Society, businesses and households face a number of economic decisions. These economic decisions
More informationChapter 1: An Economic Way of Thinking
Chapter 1: An Economic Way of Thinking Adam Smith Father of Economics Said competition and a free market is key to a healthy economy Your age group is very powerful! Think about how you influence companies
More information