Prof. Mike Microeconomics Lecture Notes, Week 1
Prof. Mike Microeconomics Lecture Notes, Week 1 ECON 201
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This 3 page Class Notes was uploaded by Cal Clark on Monday October 5, 2015. The Class Notes belongs to ECON 201 at a university taught by Mike Paruskziewicz in Fall 2015. Since its upload, it has received 21 views.
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Date Created: 10/05/15
Prtlland Stte UNlVIERSITY Prof Mike ECON 201 101 Lecture Notes Eric Hoffman He seems nice Let s bug him Here s his information Cramer 2nd floor Econ Lab Tues 2 5 hericodxedu SKIP Economcsgmssm 1X i THE nrr tuunv Till nnIlI HIGH Microeconomics what is it The study of the allocation of limited resources in the most efficient ways People face tradeoffs The cost of what you re giving up Ex Going to college Financial cost 40000 Economic cost 80000 40000 spent 40000 not earned working Rational actors think on the margins Ex Widget Factory Making 20 Widgets and selling at 10 each If cost of production on 21st widget 9 then make it If cost of production on 21st widget 11 then do not make it People respond to incentives Ex lf Oregon raises the cost of gas more people will buy Priuses and less Hummers Ex When seat belt laws passed more people got into car crashes Seat belts make you safe Now I can drive faster because Trade makes everyone better off Governments can improve market conditions Sometimes Ex Trimet in Portland We don t want 6 bus companies competing Too many buses Gov guaranteed monopoly Portland Sttc UNlVlERSITY Happiness Ex Go to Blazer game or go to GF s recital They overlap Take into account personal happiness AND GF s happiness Utility compounds Go to GF s recital because her utility affects yours Ex Moving out of parent s house Where should I move GraphingAlgebra Review y mx b Slope RiseRun Intercepts lf xO what is y lf yO what is x Production Possibilities Frontier PPF Will be on final With a limited amount of time how much of 2 things can I produce Ex Stranded on an island 10 hours of daylight 5 for food There are 2 types of food on island Fish coconuts 1 hour fishing 3 fish 1 hour cracking coconuts 4 coconuts Employment of h 5 Production labor hours h of goods Fish Coconuts Fish Coconuts Fishing w Spear 5 O 15 O 30 4 1 12 4 24 3 2 9 8 18 2 3 6 12 12 1 4 3 16 6 O 5 O 20 O Portland Sttc UNlVlERSITY Employment of h 8 Production labor hours h of goods Fish Coconuts Fish Coconuts Fishing w Spear 8 O O 48 7 1 4 42 1 7 28 6 O 8 O 32 O Points to the left of the PPF are possible but inefficient Points to the right of the PPF are not possible Points on the PPF curve are both possible and efficient When increasing efficiency in production economics says Better worth your time to not produce for a certain period of time and rest instead
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