micro-introduction lecture

micro-introduction lecture - Principles of Economics:...

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0 Principles of Economics: Microeconomics ECO 200-051 Code 0909 First class: Introduction
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1 Syllabus Review Who I am, my office hours, my e-mail address Requirements of the course: Mankiw text Aplia computer-aided assignments Business press eg NY Times, Barron’s, Wall Street Journal or websites Grading: cumulative final exam (40%) Midterm exam1 (20%) Midterm exam2 (20%) Aplia problem sets
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2 Note No make-up midterms No extra credit Approx dates of midterms: one-third and two- third through the course. Letter grade based on weighted average of numerical grades Final exam: December 20 5:20-7:20PM Bring a simple calculator and squared paper to class Use Blackboard
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We will start this course by answering the following questions: What kinds of questions does economics address? What are the principles of how people make decisions? What are the principles of how people interact?
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What Economics Is All About s Scarcity : the limited nature of society’s resources s Economics : the study of how society manages its scarce resources, e.g. s how people decide what to buy, how much to work, save, and spend s how firms decide how much to produce, how many workers to hire s how society decides how to divide its resources between national defense, consumer goods, protecting the environment, and other needs
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PRINCIPLE #1: People Face Tradeoffs All decisions involve tradeoffs. Examples: s Having more money to buy stuff requires working longer hours, which leaves less time for leisure. s Protecting the environment requires resources that could otherwise be used to produce consumer goods.
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PRINCIPLE #2: The Cost of Something Is What You Give Up to Get It s Making decisions requires comparing the costs and benefits of alternative choices. s The opportunity cost of any item is whatever must be given up to obtain it. s It is the relevant cost for decision making.
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The Cost of Something Is What You Give Up to Get It Examples: The opportunity cost ofE Egoing to college is not just the tuition, books, and fees, but also the foregone wages. Eseeing a movie is not just the price of the
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micro-introduction lecture - Principles of Economics:...

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