ch01-1 - Lecture 1 INTRODUCTION INTRODUCTION + + Please...

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Unformatted text preview: Lecture 1 INTRODUCTION INTRODUCTION + + Please read all ch. 1 Please read all ch. 1 TEN PRINCIPLES OF ECONOMICS 1 Welcome and info Welcome to (or back to) Philly and UPenn. Welcome to Economics 002- Introductory Macroeconomics (lecture 1) . Allow me to introduce myself. Websites for this course: a) Blackboard system at Upenn b) Aplia (www.aplia.com) Syllabus TEN PRINCIPLES OF ECONOMICS 2 Funky stuffs Accent??!!?? Appearance. Yes, I know, I am kind of a big fella! And this may make some of you even scared of me and of coming to OH or asking questions, but you should never feel scared by me unless of course I put up my favorite clothes TEN PRINCIPLES OF ECONOMICS 3 TEN PRINCIPLES OF ECONOMICS 4 Risks to Avoid in this Class TEN PRINCIPLES OF ECONOMICS 5 Econ: a definition Economics is the science concerned with studying social behavior in terms of the incentives and the constraints affecting agents decisions on how to allocate scarce resources among alternative uses. The aim of interpreting social behavior is common to other disciplines, say sociology. It is the emphasis on incentives and the constraints affecting individual decisions that is typical of economics. TEN PRINCIPLES OF ECONOMICS 6 TEN PRINCIPLES OF ECONOMICS 7 What Economics Is All About Scarcity : the limited nature of societys resources. Economics : the study of how society manages its scarce resources, e.g. how people decide what to buy, how much to work, save, and spend how firms decide how much to produce, how many workers to hire how society decides how to divide its resources between national defense, consumer goods, protecting the environment, and other needs Econ and other social sciences Consider the secular rise in college education. To explain this fact a sociologist would likely emphasize the influence of adult parents on the kids decision, or the importance of education as a mean for developing social and interpersonal skills in this age of communication. An economist would think differently: She would emphasize the economic incentives that drive the decision to acquire further education as opposed to start working: in particular, the recent rise in the salaries of university graduates relative to those of high-school graduates who create a clear incentive to acquire more schooling. (podcast for you to listen about this) TEN PRINCIPLES OF ECONOMICS 8 Some question of Macroeconomics Macroeconomic investigates questions such as: Why do we observe expansions and recessions? What are the causes of unemployment? Why does the price level fluctuate?...
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ch01-1 - Lecture 1 INTRODUCTION INTRODUCTION + + Please...

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