Macronotes - 1/16/08 Chapter 1 intro to Macroeconomics I....

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Chapter 1 intro to Macroeconomics I. What is economics a. Economics is the study of how individuals firms and societies choose to allocate their scarce resources among competing uses i.Scarcity: the basic economic problem. Scarcity occurs when wants exceed the resources available to satisfy them b. Micro vs. Macro i.Macroeconomics – the study of the economy as a whole 1/28/08 II. Supply A.Supply(S): the willingness & ability of sellers to make output available.Supply relates price & quantity supplied (Qs), Cet. Par. 1. Quantity Supplied: a specific amount at a specific price. B. Law of Supply: a greater quantity will be supplied at higher prices than at lower prices, Cet. Par. -Increase P leads to Increase Qs -decrease P leads to decrease Qs C. Supply Schedule P Qs D.See notebook for graph. 4 4 3 3 2 2 1 1 0 0 E. Non-price influences of supply 1.price of inputs increase input price leads to decrease supply 2.seller expectations 3.technology -increase in technology leads to increase in Supply 4.population -increase # of sellers leads to increase in supply 5.prices of other producible goods ex: tables & desks -increase P tables ----> decrease S desks 6. acts of nature Ex: hurricane ----> decrease S oranges (Florida) 7.Etc. Ex: Shoes, price of leather goes up (Graph in notebook) 1/30/08 III. Market Equilibrium A. B.
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This note was uploaded on 04/14/2008 for the course ECON 1110 taught by Professor Heatherklinger during the Spring '08 term at North Texas.

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Macronotes - 1/16/08 Chapter 1 intro to Macroeconomics I....

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