Econ 101 Winter 2010 Reading Guide

Econ 101 Winter 2010 Reading Guide - Economics 101 Section...

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Reading Guide and Course Outline University of Michigan Winter 2010 Economics 101 Section 400 Principles of Microeconomics
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Econ 101.400 Winter 2010 January 6 January 11 & 13 January 18 January 20 Lecture 1 Course Introduction We define the basic economic problem that arises from scarcity, and introduce Pareto efficiency as a criterion with which to judge an allocation of resources. Reading : Chapter 1 of the text Lectures 2 & 3 The PPF model: A simple model of scarcity and trade We discuss the importance of model building in economics, and build our first model: the Production Possibilities Frontier (PPF) model. This is a very simple model that allows us to observe the implications of scarcity of productive resources. The notion of opportunity cost naturally emerges in this context. We use the model to motivate production decisions, trade patterns and specialization. Reading: Chapter 2 (especially pp 36 – 49). Martin Luther King Jr Day No Class Lecture 4 Supply Decisions The PPF model gives a simple way to understand supply behavior in a market or an economy. We study how the quantity of a good supplied to the market varies with its price, and consider how it might depend upon other variables as well. We formalize these ideas in the creation of the supply curve , and use the supply curve to find a way to represent the benefits accruing to suppliers when trading at a given price. Reading: Chapter 3, pp. 74 – 78, & chapter 4, pp. 101-102
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Econ 101.400 Winter 2010 January 21 & 22 January 25 January 27 February 1 & 3 Quiz 1 in Discussion Section Lecture 5 Demand Decisions In the same way that the supply curve captured the relationship between price in the market and the quantity of a good supplied, we can also characterize the relationship between the good’s price and the quantity demanded. This is reflected in the demand curve . We
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This note was uploaded on 04/20/2010 for the course ECON 101 taught by Professor Gerson during the Winter '08 term at University of Michigan.

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Econ 101 Winter 2010 Reading Guide - Economics 101 Section...

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