Lecture1--INTRODUCTIONa - Economics 205 Economics 205...

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Unformatted text preview: Economics 205 Economics 205 Professor Hyman Professor Hyman: Professor Read the Syllabus to find out about 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. your Lab Section Class Key Class 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 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 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 Read coming to class coming sKeep up with the work sAttend all lectures and Attend labs labs sPay attention and take Pay good notes good Introduction to 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 Economics Has Two Main Branches: Two Basic Concepts 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 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 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 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: benefit s When the marginal When cost outweighs the marginal benefit the decision will be NO! decision MB MC s MC>MB means MC>MB AVOID IT AVOID ...
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