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Unformatted text preview: 1 1- 1 ECONOMIC ISSUES AND CONCEPTS Slides by Alex Stojanovic with additions by Winston Moore 1- 2 Lecturers • Winston Moore RM 29 Department of Economics Tel. 417-4275 Fax 417-4270 Email [email protected] 1- 3 Course Requirements • Two one hour lecturers per week • One tutorial – problems are assigned the week before and should be prepared before attending the tutorial • Evaluation – one two hour exam. 1- 4 Course Materials • Textbooks – Lipsey, R. and K. Chrystal (2004). Economics , Oxford University Press, Oxford (Tenth Edition). – Salvatore, D. (1992). Schaum’s Outlines: Microeconomic Theory . McGraw -Hill (Third Edition). • Students should register for the course on WebCTto access lecture slides, tutorial problems and other material. 1- 5 Course Objectives • This module aims to provide students with a thorough grounding in the basic principles of microeconomics and exposure to a range of applications of the theory. • After completion, students should have a solid grasp of the basic theoretical material and be able to demonstrate knowledge of important areas of application. 1- 6 Course Outline • Topic 1 Economic Issues and How Economists Work • Topic 2 Demand, Supply, and Price • Topic 3 Elasticity of Demand and Supply • Topic 4 Demand Analysis 1: Marginal Utility • Topic 5 Demand Analysis 11: Indifference Theory • Topic 6 The Cost Structure of Firms in the Short Run • Topic 7 The Cost Structure of Firms in the Long Run • Topic 8 Perfect Competition • Topic 9 Monopoly • Topic 10 Imperfect Competition • Topic 11 Demand and Supply of Inputs • Topic 12 Market Success and Market Failure • Topic 13 Government Success and Government Failure 2 1- 7 Learning Outcomes for this Lecture • Modern market economy uses price signals to solve the complex problems involved in using resources to produce goods and services that people want • The choice between competing demands for scarce resources • Interaction between production, employment and consumption decisions • Market economy generally delivers outcomes desired by consumers • Governments step in when markets fail to produce results that are regarded as successful 1- 8 What is Microeconomics? • The branch of economics that deals with the behaviour of the individual producer and consumer, particularly as decisions are made with respect to the allocation of limited resources. 1- 9 Self Organisation • Who coordinates all the transactions that occur in an economy? • No one! – By following there own self -interest, doing what seems best and most profitable for themselves, people produce a spontaneous social order. • Scottish economist and political philosopher Adam Smith was the first to develop this concept....
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This note was uploaded on 11/12/2011 for the course ECON 2009 taught by Professor Mr.norvill during the Spring '11 term at University of the West Indies at Mona.
- Spring '11