Lecture1--INTRODUCTIONa - Economics 205 Professor Hyman...

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Unformatted text preview: Economics 205 Professor Hyman Professor Hyman: Read the Syllabus to find out about Required course materials available at www.dotlearn.com Optional coursepak with sample examination questions Examinations, attendance policy, and other Course Requirements Weekly Reading Assignments Grading Register for dotlearn by lab section: Use the indicated Class Key. If you do not know your lab use key for unassigned students. Lab Section Class Key HYMA1041 HYMA1042 HYMA1043 HYMA1044 HYMA1045 HYMA1046 HYMA1047 HYMA1048 HYMA1049 HYMA1050 HYMA1051 HYMA1052 HYMA1053 HYMA1054 HYMA1055 EC205L201 EC205L202 EC205L203 EC205L207 EC205L208 EC205L209 EC205L210 EC205L211 EC205L213 EC205L214 EC205L215 EC205L217 EC205L219 EC205L220 EC205L Unassigned All Students Must be enrolled in a Lab Labs are meeting this week Labs meet once a week and lab grades count as 25% of your term average Course Requirements Your grade is based on 2 exams, a lab grade and the final examination Each exam is 25% of your grade, your lab grade is also 25% of your grade 4 unexcused absences will result in grade reduction each additional 4 results in further reductions. DO NOT LEAVE WHILE THE LECTURE IS IN PROGRESS Leaving early without an acceptable excuse will count as an unexcused absence! Good Study Habits: sRead the chapter before coming to class sKeep up with the work sAttend all lectures and labs sPay attention and take good notes Introduction to Economics The branches of economics and some basic economic concepts and analysis MICROECONOMICS: Analyzes choices made by individual participants in an economy with special emphasis on how prices are determined and how prices influence decisions. MACROECONOMICS: Analyzes the overall performance of an economy its total production, price level, rate of inflation, employment, unemployment and rate of growth. Economics Has Two Main Branches: Two Basic Concepts Scarcity: The imbalance between our desires and the means of satisfying those desires Opportunity Cost: The sacrifice of the next best alternative use of resources when those resources are used for any specific purpose Marginal Analysis In economics "marginal" means "extra Marginal Benefit is the value placed on an extra (one more) unit of an item Marginal Cost is the value of the sacrifice made to obtain an additional unit of an item Rational Behavior Occurs when individuals seek net gains by undertaking actions for which marginal benefit (MB) exceeds marginal cost(MC) When marginal benefit exceeds marginal cost of an activity a rational person will undertake more of that activity Decisions involve weighing marginal benefit against marginal costs: When the marginal benefit outweighs the marginal cost the decision will be YES! MC MB MB>MC means GO FOR IT Decisions involve weighing marginal benefit against marginal costs: s When the marginal cost outweighs the marginal benefit the decision will be NO! MB MC s MC>MB means AVOID IT ...
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