Econ 206 September 1 and 3
Econ 206 September 1 and 3 ECON 206 - 06
Popular in Principles of Microeconomics
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This 4 page Class Notes was uploaded by Yancey "Catie" Kruger on Friday September 4, 2015. The Class Notes belongs to ECON 206 - 06 at Radford University taught by Prahlad Kasturi in Fall 2015. Since its upload, it has received 28 views. For similar materials see Principles of Microeconomics in Economcs at Radford University.
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Date Created: 09/04/15
ECON 206 Dr Kasturi September 1 2015 Microeconomics Individual markets We work in markets 0 Supply and demand What type of people make up the markets 0 Individual who make up the demands 0 The businesses who supply the demands o The overnment 9 Local What motivates people to 5mm work for the benefit of the Federal government For the people by the people 9 does this work Concepts of the Cost and Production Cost What costs go into the production Production Marketing Markets Distribution 1 Product market 0 Example Boing airplanes vs airbus 0 Example wheat farmers are all pitted against each other to sell the same product 0 Having only one electricity company is an example of a regulated monopoly 2 Resource market September 3 2015 Economic History of the United States Start 1900 50 still agricultural First World War Focused on domestic and abroad 1929 Great Recession 9 Great Depression Great Depression Domestic Federal Trust Great Recession No growth in Economy Great Depression 0 High level of unemployment 24 or more 0 Put stress on the family Spiral downward in economy 39 Men were breadwinners during this time because they couldn39t support their families so many would abandon their families or commit suicide World War II 9 Wartime Economy Cold War US Troops to Japan Korea Vietnam etc Troops from WWII at home got married settled down etc 0 Soldiers want to set settle in cities 0 Defense production was favored during this time Rurbanization 195019605 Labor force in 1940 60 Men 40 Women 0 Amenities of the city are enjoyed in the rural areas 0 equalreach 0 Led to no longer seeing a starch distention between rural and urban areas USA vs USSR 0 United States 0 Soviet Union United States Western System and Capitalism Leader 0 Competitive in both Science I Developing countries Vietnam War Draft was instated Men coming home in body bags Soviet Union Eastern System and Communism Leader 195039s and 196039s 3 increase population 4 economic growth Inflection 34 Unemployment at 4 Infla rion begins ro pick up 1973 War in The Middle Eas r During this time the US got 30 of its oil Israel vs Arab Neighbors Oil embargo 0 027 a gallon for gas 9 over a dollar for gas from Saudi Arabia Prices go up 9 no one can afford it 9 producers produce less 9 people are let go o This effec rs of The raise on case prices causes infla rion Ronald Regan 19809 Global recession USA was The bigges r buyer of ou rside commodi ries Regan focused on The supply side To fix The recession ins read of The demand side of The economy By The end of his rerm unemploymen r was back down To below 4 USA banks loaned money eeorge BUSh Srquot To countries who didn f Came in of The railend of a deb crisis use if Wisely Nd COUld Paymen r and loans scandal NOT PC Y ll bC Ck Campaigned on no new faxes however The na rion deb r was high and he had To go back on his word and raised faxes 1990s S rar r of The IT revolu rion US moved labor ro where i rs cheaper 0 USA 9 Mexico 9 China 0 Ou rsourcing ZOOOs Level of na rional deb r is The same as The GDP GDP Gross Domes c PrOdUCT Persian golf war 2 Afghanis ran war 9Triggered by 9 11 Obama is curren rly a r remp ring To build a peace fime economy Imporfanf People 1 Adam Smith Classcal Economy 0 Wrote the Wealth of Nations 0 Published in 1776 supply creates its own 0 Beginning of classical economy demCmd no government interference 2 I Communism 9 39 car Marx C I Capitalism may not be 0 DOS 0 I m all it39s supposed to be 0 Father of communism o 1880 3 John Maynard Haynes O 0000 General Theory of Employment Interest and Income 1936 Believed the Great depression caused by paranoia of unemployment Not enough demand in the economy Someone must install confidence to spend in the economy government Paid 25 cents an hour Could but food and services Bridges interstate etc created by government in great depression Wages went up as demand increases A dollar in USA 9 Bottled Water Dollar in China 9 Small Lunch Dollar in India 9 breakfast and lunch Neoclassical Economist Ideals To be happy Individuals try to maximize utility US Economy never sleeps