Week 1 Slides[2] - ECO 212 Principles of Economics Week One...

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ECO 212 – Principles of Economics Week One Objectives: • Explain how the principles of economics affect decision-making, interaction, and the workings of the economy as a whole. • Compare and contrast market systems and the role of an economist within these systems. • Describe how the necessity of a good and the availability of substitutions impact price elasticity. • Determine how changes in price and quantity influence market equilibrium. Chapters 1, 2, 3, 6, and 9
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Week 1 ECO 212 2 Weekly Topics Week 1: Principles of Economics Week 2: Markets and Types of Goods Week 3: Measuring Economic Health Week 4: The Federal Reserve Week 5: International Trade
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Week 1 ECO 212 3 1.1 Three Key Economic Ideas Explain these three key economic ideas: People are rational. People respond to incentives. Optimal decisions are made at the margin. 1.2 The Economic Problem That Every Society Must Solve Discuss how an economy answers these questions: What goods and services will be produced? How will the goods and services be produced? Who will receive the goods and services produced? 1.3 Economic Models Understand the role of models in economic analysis. 1.4 Microeconomics and Macroeconomics Distinguish between microeconomics and macroeconomics. 1.5 A Preview of Important Economic Terms Become familiar with important economic terms. APPENDIX: Using Graphs and Formulas Review the use of graphs and formulas. Chapter Outline and Learning Objectives Economics: Foundations and Models CHAPTER 1
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Week 1 ECO 212 4 Economics: Foundations and Models In this book, we use economics to answer questions such as the following: How are the prices of goods and services determined? How does pollution affect the economy, and how should government policy deal with these effects? Why do firms engage in international trade, and how do government policies affect international trade? Why does government control the prices of some goods and services, and what are the effects of those controls?
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Week 1 ECO 212 5 Scarcity A situation in which unlimited wants exceed the limited resources available to fulfill those wants. Economics The study of the choices people make to attain their goals, given their scarce resources. Economic model A simplified version of reality used to analyze real-world economic situations. 4.1 Economics: Foundations and Models
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Week 1 ECO 212 6 Market A group of buyers and sellers of a good or service and the institution or arrangement by which they come together to trade. Three Key Economic Ideas Throughout this book, as we study how people make choices and interact in markets, we will return to three important ideas: 1. People are rational. 2. People respond to economic incentives.
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This note was uploaded on 10/31/2010 for the course BUSINESS Econ 212 taught by Professor H.warlick during the Spring '10 term at University of Phoenix.

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Week 1 Slides[2] - ECO 212 Principles of Economics Week One...

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