Popular in Microeconomics
Popular in Economcs
This 3 page Class Notes was uploaded by IHUOMA ECHENDU on Monday February 8, 2016. The Class Notes belongs to 2306-002 at University of Texas at Arlington taught by Roger Wehr in Spring 2016. Since its upload, it has received 39 views. For similar materials see Microeconomics in Economcs at University of Texas at Arlington.
Reviews for wk1
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 02/08/16
WARNING: THESE NOTES CONTAIN INFORMATION FROM OUR FIRST WEEK OF CLASSES! VEIWER DISCRETION IS ADVISED!!! Just Kidding… I take awesome notes so ENJOY! :-) 10 fundamental principles of economics: 1.Scarcity is inescapable. 2.Risk is unavoidable 3.Therefore all persons must make choices 4.Incentives matter 5.People generally act in their own self interest 6.There is often more than one way to produce things 7.Voluntary exchange is mutually advantageous 8.Its wealth not poverty which has causes 9.Public policies have primary (intent) effects and secondary (unintended) effects some good some bad. 10. In the end economic laws tend to prevail. THE TWO NOBLEST PROFESSIONS: Manager at McDonalds plumber/ AC repairer Opportunity cost is the best forgone alternative** Wantsapproaching∞∨unlimited wants ECONOMICS FORMULA: ¿resources(scarcity) NOTE: the numerator of the economics formula is represented by a “W with an arrow to the right of it, pointing upwards towards an infinity sign”. While the denominator is represented by an R with a hyphen at the top. #AINTNOBODYGOTTIMETOCOPYFORMULAFROMTHEINTERNET ;-) **Intelligence: gotten from two Latin words INTER meaning ‘between’ and LEGO meaning ‘to choose’ **Making decisions at the margin means making decisions based on companies and choose what is a little bit better. MPC= ∆ C MR= ∆TR MC= ∆TC MRP= ∆TR MRC= ∆ TC ** ∆Y ∆Q ∆Q ∆V ∆V ** Father of economics: ADAM SMITH known for “WEALTH OF NATIONS” Introduced the phrase “INVISIBLE HAND” which represents the unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically. **COBB DOUGLAS PRODUCTION FUNCTION: Q=F (K,L) Q = QUANTITY F= FUNCTION OF K= CAPITAL L= LABOR **Labor intensive goods are more pricy than capital intensive goods e.g. A gallon of orange is more expensive than a gallon of gas. **Wealthy nations are like that because they SPECIALIZE in what they have and they TRADE. Property rights are essential for those two to take place. **Production: the transformation of input (raw materials) to output (finished goods).
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'