WEEK ONE: LECTURE NOTES
WEEK ONE: LECTURE NOTES 105.0
Popular in Principles of Economics: Macro
Popular in Economcs
This 2 page Class Notes was uploaded by Sasha on Friday September 4, 2015. The Class Notes belongs to 105.0 at Pace University taught by Mark Weinstock in Fall 2015. Since its upload, it has received 224 views. For similar materials see Principles of Economics: Macro in Economcs at Pace University.
Reviews for WEEK ONE: LECTURE NOTES
Can you just teach this course please? lol :)
-Dr. Mathias Hoppe
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: 09/04/15
MACROECONOMICS NOTES WEEK ONE 90315 What is Economics Economics is the science of choices exploring the choices made by individuals and organizations It also enables individuals and firms to make better decisions Scarcity the resources we use to produce goods and services are unlimited Example you have an limited amount of timelteach hour on the job means one hour less to study or play Hence economics is the study of choices where there is scarcity Factors of Production The resources used to produce goods and services are also known as production inputs or resources Natural Resources resources provided by nature and used to produce goods and services Labor human effortincluding both physical and mental effort that people use to produce goods and services Physical capital the stock equipment machines and structures and infrastructure that is used to produce goods and services Human capital the knowledge and skills acquired by a worker through experience of education and used to produce goods and services Entrepreneurship the effort used to coordinate the factors of production natural resources labor physical capital and human capital to produce and sell products POSITIVE ANALYSIS Answers the question What isquot or What will bequot NORMAL ANALYSIS Answers the question what ought to bequot Comparing positive and normal analysis Positive Questions 1 If the government increases minimum wage how many workers will lose their jobs If two officesupply firms merge will the price for office supplies increase How does a college education affect a person s productivity and earnings How do consumers respond to a cut in income taxes If a nation restricts shoe imports who benefits and who bears the loss P1990 Normal Questions Should the government increase minimum wage Should the government block the merger of two officesupply firms Should the government subsidize a college education Should the government cut taxes to stimulate the economy Should the government restrict imports STUPP UVEquot The three economic questions What Who and How The choices made by individuals and firms answers three questions 1 What products do we produce 2 How do we produce the products 3 Who consumes the products Economic Model A simplified representation of an economic development often employing a graph
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'