ECO 2023 Week 1 Day 1 Lecture Notes
ECO 2023 Week 1 Day 1 Lecture Notes Eco 2023
Popular in Principles of Economics: Microeconomics
Popular in Economics
verified elite notetaker
This 1 page Class Notes was uploaded by Erika Huber on Thursday August 25, 2016. The Class Notes belongs to Eco 2023 at University of Florida taught by Mark Rush in Fall 2016. Since its upload, it has received 718 views. For similar materials see Principles of Economics: Microeconomics in Economics at University of Florida.
Reviews for ECO 2023 Week 1 Day 1 Lecture Notes
Great. Need to find more like it.
Report this Material
What is Karma?
Karma is the currency of StudySoup.
Date Created: 08/25/16
8/22/16 Microeconomics ECO 2023 Week 1 – Day 1 Lecture Notes Introduction to Economics: Math is an important tool for economics. Reality is incredibly complex. So, simplified models allow us to understand this complexity. Math that we use in this class is mostly diagrams and algebra. Economics is a social science. Microeconomics: The study of individual firms, consumers, and markets within the economy. Macroeconomics: Study of the aggregate (overall) economy. Three Big Economic Questions: 1. WHAT? What goods and services will be produced and in what quantities? 2. HOW? How will the goods and services be produced? 3. WHO? For whom will the goods and services be produced? Methods of Organizing an Economy: Tradition: This year’s answers are the same as last year’s answers. Command: Government planners determine the answers and then create plans for producers. (Ex: North Korea, Cuba) o Can’t channel people’s private interests/incentives to do what’s best for the economy. Capitalism: Markets, prices, property rights. (Ex: USA) o Markets: any arrangement that allows buyers and sellers to transact their business. (Allows buyers to buy, and sellers to sell.) Prices are generated in markets. Allocate resources in our economy (the what, how, and whom/3 big economic questions) o Property Rights: socially determined, legal rights that govern the use of and the disposal of property. Differ between societies Determine who owns things Allocate resources in our economy (the what, how, and whom) Property: can be land, labor Ex: ownerofMcDonaldshaspropertyrightsoverallthechoices madewith the business of McDonalds All economies combine elements of different methods of organizing an economy. All economies are “mixed economies” to some extent. Some countries have more mixed economies than others.