Chapter 9 - PRICE-SEARCHER MARKETS WITH LOW ENTRY BARRIERS
Price takers just take the market price - there is no pricing decision, no advertising, no
marketing, etc. They can adjust their output (expand/contract) and they can try to
reduce costs of produc
CHAPTER 8 - PRICE TAKERS AND THE COMPETITIVE PROCESS
See opening quotes and questions, page 209.
Last chapter we looked at production costs. In next two chapters, we look at the
interaction of prices, profits and production for two groups of firms:
CHAPTER 7 - COSTS AND THE SUPPLY OF GOODS
What do economists mean by costs? Why are costs so important? What is the
function of costs? We discuss those questions in this chapter.
ORGANIZATION OF THE BUSINESS FIRM
What do firms (like GM) do?
1. Purchase in
Chapter 6 - Demand and Consumer Choice
Review graphs on pages 137-139.
Opening quotes and questions page 141.
We start the micro material by looking at markets for specific products, specifically
the demand side of the market. The next four chapters will
CHAPTER 4 - SUPPLY AND DEMAND FOR THE PUBLIC SECTOR
"Public Choice analyzes the motives and activities of politicians, civil servants
and government officials as people with personal interests that may or may not
coincide with the interest of the general
CHAPTER 3 - SUPPLY, DEMAND AND THE MARKET PROCESS
QUOTE - "From the point of view of physics, it is a miracle that 7m New
Yorkers are fed each day without any control mechanism other than sheer
Market mechanism is so efficient at coordinating
CHAPTER 2 - SOME TOOLS OF THE ECONOMIST
See opening quote, Friedman, page 31.
Choice involves the loss of foregone alternatives. OPPORTUNITY COST is the
highest valued alternative that must be sacrificed when one chooses. (Choosing
between A and B, if you
CHAPTER 1 - THE ECONOMIC WAY OF THINKING
Economics is NOT about what to think, but HOW to think!
"Economics is not a body of concrete truth, but an engine for the discovery of the
WAY of thinking in a very systematic, rational, logical manner.
CHAPTER 20 - SOCIAL SECURITY
Social Security, known as OASDHI - is the largest federal transfer payment program
in the world ($350B/year) - Old Age, Survivors, Disability and Health Insurance.
Started in 1935 as a compulsory, national retirement insurance
CHAPTER 16 - INCOME INEQUALITY AND POVERTY
Economic inequality is present in all economies, societies, countries regardless of
what type of economic system - communism, capitalism, socialism, etc. Substituting
politics and central planning for markets doe
Chapter 15 - THE ECONOMICS OF LABOR UNIONS
Investment in Human Capital, see page 377 in Chapter 14.
Labor Union: collective organization of employees who bargain as a group (joint
bargaining) with employers for wages, benefits, working conditions, grievan
CHAPTER 13 - EARNINGS, PRODUCTIVITY AND THE JOB MARKET
80% of National Income is from labor, a return to investment in human capital. 20%
of National Income is from Interest, Rents, and Corporate Profits (dividends) that
reflects a return to investment in
CHAPTER 12 - SUPPLY AND DEMAND IN RESOURCE MARKETS
So far we have talked about the market for final goods, or the product markets. Now
we focus on the Resource Markets, also called Factor Markets (factors of production)
or Input Markets. In product market
CHAPTER 11- BUSINESS STRUCTURE, ANTITRUST AND REGULATION
Opening quotes, page 287.
Questions: Can govt regulation improve competition? Are regulations effective? Are
regulations costly, cost-effective, and who bears the cost?
STRUCTURE OF THE U.S. ECONOMY
Chapter 10 - PRICE-SEARCHER MARKETS WITH HIGH ENTRY BARRIERS
So far we have assumed that price-taker and price-searcher markets are competitive,
due to low barriers to entry (and exit). We now look at industries where the barriers to
entry/exit are high.