BAFB1023 Topic 1 Intro to Microeconomics - MICROECONOMI CS...

Info icon This preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
MICROECONOMI CS Topic 1 Introduction to Microeconomics
Image of page 1

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

View Full Document Right Arrow Icon
What is Economics? Definition of Economics Scarcity and Choice The Economic Questions Production Possibilities Frontier Opportunity Cost The Difference Between Microeconomics and Macroeconomics Key Terms
Image of page 2
Definition of Economics Economics is a social science that studies the choices that individuals, businesses, governments, and entire societies make as they cope with scarcity and the incentives that influence and reconcile those choices. Choices - To choose among the available alternatives Scarcity – our inability to satisfy all our wants; faced with scarcity we must choose among the available alternatives.
Image of page 3

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

View Full Document Right Arrow Icon
Definition of Economics Scarcity forces us to make choices among a limited set of possibilities Study the logic of rational choice among competing alternatives Under scarcity, deciding to have more of one good or service means deciding to have less of something else. The relevant cost of a decision is the value of the best alternative foregone
Image of page 4
Needs vs. Wants Needs – what people must have to live. Food Clothing Shelter Wants – the things we would like to have, but can live without.
Image of page 5

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

View Full Document Right Arrow Icon
The Difference Between Microeconomics and Macroeconomics Microeconomics: The study of the choices that individuals and businesses make, the way these choices interact in markets, and influence of governments Macroeconomics: The study of the performance of the national economy and the global economy
Image of page 6
7 Macroeconomics vs. Microeconomics MICROECONOMIC QUESTION MACROECONOMIC QUESTION Go to business school or take a job? How many people are employed in the economy as a whole? What determines the salary offered by Citibank to Cherie Camajo, a new Columbia MBA? What determines the overall salary levels paid to workers in a given year?
Image of page 7

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

View Full Document Right Arrow Icon
8 Macroeconomics vs. Microeconomics MICROECONOMIC QUESTION MACROECONOMIC QUESTION What determines the cost to a university or college of offering a new course? What determines the overall level of prices in the economy as a whole? What government policies should be adopted to make it easier for low-income students to attend college? What government policies should be adopted to promote full employment and growth in the economy as a whole? What determines whether Citibank opens a new office in Shanghai? What determines the overall trade in goods, services and financial assets between the US and the rest of the world?
Image of page 8
The Economic Questions What, How and For Whom? What goods and services get produced and how much ?
Image of page 9

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

View Full Document Right Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern