Class Notes - 9-5-07

Class Notes - 9-5-07 - o Trade-offs o Models will predict...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Macroeconomics – Class Notes – 9/5/07 THINKING LIKE AN ECONOMIST - MICRO VS. MACRO o Microeconomics: “Individual parts of economy” o Macroeconomics: “economy as a whole” Unemployment rate How quickly prices are rising (inflation) Long term growth National trading patterns Rhythm of economic activity (expansion, recession) - ECONOMICS as a SOCIAL SCIENCE - SOCIAL SCIENCES - o Assumptions – hypothesis – test o Theory is the heart of the hypothesis WE ALL USE THEORY - SODA MACHINE o You don’t have to know the workings of the machine to test a theory - PARTY LINES - PARTY NOW/GET UP EARLY & DO PAPER - Simple theories do work DO WE BUY MORE WHEN PRICE IS LOWER? Demand is weather dependent CIRCULAR-FLOW DIAGRAM (See book) MODEL II: PRODUCTION POSSIBILITIES FRONTIER - Shows all combos of 2 goods given: o Technology o Resources o Fully and efficiently used
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Shows… Efficiency Tradeoffs Opportunity cost Economic growth ROLES OF ECONOMICS Scientists… and policymakers
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: o Trade-offs o Models will predict possible trade-offs Values will shape decision POSITIVE VERSUS NORMATIVE (Statements) Positive statements: descriptive & analytic Normative statements: reflect individual opinions o Should/shouldnt o Ought/Oughtnt Example: A rise in the minimum wage raises unemployment o This is a positive statement 84 50 DD 1.40 2.7 13 20351 53 51 51 -1 = Stock ticker o 84 and 50 52 week high and low o DD Ticker Symbol o 1.40 Dividend o 2.7 Yield o 13 PE Ratio o 20351 Volume of shares traded in 100s o 53 51 51 53 Highest price for the day 51 Lowest price for the day 51 Closing price for the day o-1 Total change (Dividend) / (Closing stock Price) * 100 = ($1.40) / ($51.00) * 100 = 2.7% (Yield) (Closing price of the stock) / (Earnings) (P / Earnings per share) = 13 (P.E Ratio)...
View Full Document

Page1 / 3

Class Notes - 9-5-07 - o Trade-offs o Models will predict...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online