Popular in Principles of Economics: Macroeconomics
Popular in Economcs
This 4 page Class Notes was uploaded by Sidney Hong on Friday September 25, 2015. The Class Notes belongs to ECO 106 at Pace University taught by Cesar Castope in Fall 2015. Since its upload, it has received 31 views. For similar materials see Principles of Economics: Macroeconomics in Economcs at Pace University.
Reviews for eco106_week_4
Report this Material
What is Karma?
Karma is the currency of StudySoup.
Date Created: 09/25/15
Fall 2015 Principles of Economics Micro ECOlO6 CRN 72490 MondayWednesday 900 AM 1025 AM Professor Cesar Castope 0923 Chapter 1 Introduction What Is Economics Learning Objectives 1 List the three key economic questions 2 Discuss the insights from economics for a realworld problem such as congestion 3 List the four elements of the economic way of thinking 4 List three ways to use macroeconomics 5 List three ways to use microeconomics Economics 0 Study of how people businesses governments and other organizations make choices when there is scarcity Scarcity 0 Resources we use to produce goods and services are limited Factors of Production 0 Natural resources 0 which are provided by nature and include land mineral deposits oil and gas deposits and water 0 Labor 0 human effort including both physical and mental effort used to produce goods and services 0 Physical capital 0 the stock of equipment machines structures and infrastructure that is used to produce goods and services 0 Human capital 0 the knowledge and skills acquired by a worker through education and eXperience and used to produce goods and services 0 Entrepreneurship O the effort to coordinate the factors of production to produce and sell products Economic analysis takes on two primary forms 0 Positive analysis 0 which answers the question What is or What will be 0 Normative analysis 0 which answers the question What ought to be Economics seeks to answer three primary questions 1 What products do we produce 2 How do we produce the products 3 Who consumes the products Economic models 0 A model is a simpli ed representation of an economic environment Marginal Change 0 Changing one variable a measure of something that can take on different values changes the economic outcome Ceteris Paribus 0 Latin eXpression that means to hold other variables fixed Four main elements to the economics way of thinking 1 Use assumptions to simplify 2 Isolate variables 3 Think at the margin 4 Rational people respond to incentives Macroeconomics o The study of the nation s economy as a Whole Macroeconomists study questions of in ation unemployment and economic growth Three important reasons for studying macroeconomics are 0 To understand Why economies grow 0 To understand economic uctuations c To make informed business decisions Microeconomics 0 Studies the choices of indiVidual economic agents such as households rms and governments 0 Studies how the choices made by these agents affect the market for goods and serVices Three important reasons for studying microeconomics are 0 To understand markets and predict changes 0 To make personal and managerial decisions 0 To evaluate public policies Finding the slope of a line merrian dii39ilii tl between Twupuintn slime If 7 7 hunmn aldi mm helween twupmnls rise alum Equot run Ely atop quot mi The equations allmi all E p i nl the 53mg cinncepl Calculating percentage changes 39 my wlunimitiahulm F xl P tmmge hangu n JEL IJilEIL39Ia39i u in we will 115311 midnight 131dem nm39 value jnitiui what I L xl l Rmm39iagreezhii ngl r as my value whim the amateur vialux HEW aHim L1tlihsz w ul 391 I39 Assignments due 0928 0 Blackboard homework and quizzes 2