Chapter 1: The nature of Economics
I. The Power of Economic Analysis.
THE STUDY OF HOW PEOPLE, INSTITUTIONS, AND SOCIETY MAKE
ECONOMIC CHOICES UNDER CONDITIONS OF SCARCITY
Micro vs Macro.
a. THE PART OF ECONOMICS CO
Chapter 1: Limits, Alternatives and Choices
A. What is Economics?
THE STUDY OF HOW PEOPLE, INSTITUTIONS, AND SOCIETY
MAKE ECONOMIC CHOICES UNDER CONDITIONS OF
1. Scarcity and Choice
SCARCITY RESTRICTS OPTIONS AND DEMANDS CHOICES.
Ch. 3 Using Demand Curves
Downward sloping demand curves
D = Demand Curve
Quantity Demanded (Q)
Using Demand Curves
1. Find quantity demanded (QD) at a given
2. Find maximum willingness to pay (MV)
for a parti
Ch. 3 Changes in Demand
What Shifts the
Chapter 3. Changes in Demand and Changes in Quantity
1. How will a change in Income
Suppose the good is a
Market Demand Unit Demand
The demand for all the consumers in the
marketplace is found by horizontally adding up
their demand curves
(see Figure 3-2)
An easy way to
Ch. 3 Third Law of Demand
Why are the good apples not sold in Seattle?
There are two types of apples:
High Quality (H)
Low Quality (L)
The prices for High and Low quality are:
PH = $1
PL = $0.50
The University of Texas at Arlington
College of Business
Principles of Microeconomics
Instructor: Todd Gabel
Office Number: COBA 317
Office Telephone Number: 817-272-3383
Email Address: email@example.com
Office Hours: MW 12pm-1:30pm;
Principle #3 Diminishing Marginal Value
Ch. 3 Law of Demand
Applying the Law of Demand
Will trade happen between Skippy and Myrtle?
Will it make them better off?
Beliefs about trade:
Wont trade unless get something of equal value
More on Substitution
Loss of Life Expectancy (LLE)
Living in poverty
Living in Southeast
1) A key factor in producing high economic growth is: A) wellfunctioning financial markets.
2) A financial crisis is: A) a major disruption in the financial markets
3) Even economists have no single, precise definition of money
because: A) the moneyness o
1) Which of the following payment mechanisms
provides the greatest incentive to over utilize
medical care? A) Fee-for-Service (over utilization)
just in case (under utilization captization)
2) Which refers to the exploitation of
asymmetric information to
Money = anything which is generally accepted in a transaction as a payment
3 Functions of Money
Medium of exchange
Store of value
Unit of account
Barter = exchange of goods/services for other goods/services
Double coincidence of wants = person ha
keynes vs hayek youtube
deck the halls with macro follies
Classical View: The economy is inherently stable; government intervention tends to destabilize
Keynesian View: The economy is inherently unstable; government interventio
III. Demand, Supply, Equilibrium
demand = (1)the various quantities of (2)a good or service (3)which a consumer (4)is
BOTH, willing and able (5)to purchase (6)at various prices (7)per unit of time, (8)certeris
paribus * VERY IMPORTANT (fig 4)
- a chan
Ten Fundamental Principles of Economics
1. Scarcity is inescapable
a. Scarcity is the fundamental problem; without it, there would be no economics
b. Titanic - lack of lifeboats
2. Risk is unavoidable
a. Titanic - 1 in a million chance of sinking
QUIZ CHAPTER 1 WELCOME TO ECONOMICS!
Please place your answer on a scantron form.
Label your scantron as Quiz 1. Print your name and class#.
Economics may best be defined as the:
A. interaction between macro and micro considerations.
B. social science
ECON 2305-006 Principles of Macroeconomics
Instructor: Roger Wehr
Office Number: 314 Business Building
Address: Box 19479, Arlington, Texas 76019
Office Telephone Number: (817) 272-3287
Messages may be made via e-mail, fax, and at the voice mess
Practice Problems International Trade and Comparative Advantage
1. Goods and services bought domestically but produced in other countries are referred to as
C) transfer payments.
D) foreign consumpt
ECON 2305 Test #1 PREVIEW SHEET
Ten Fundamental Principles of ECONOMICS
1.What is meant by scarcity?
There only exists a finite amount of resources, human and non-human.
2.What is meant by opportunity cost?
The opportunity cost is whatever must be given u
Reference questions for the Final Exam
Question 1. Current 10-year and 6-year interest rates are 2% and 1.5%, respectively. If the
forward rate from year 7 to year 10 is 2.75% in the market, could you find any arbitrage
opportunity? If so, please specify
Case Study Based on Dell Computer financial statements from 2007 to 2009:
Year to year change analysis
Cost of Good Sold
Selling gen. & admin.
strategy is the link between
corporate goals and operational
achieve profitability goals, we can:
Change Prices (Chapter 8)
Decrease Variable or Fixed
Channels of Distribution &
Business Marketing Networks
What are Distribution
A network of inter-connected firms that
provide sellers a means of infusing the
marketplace with their
Total factor productivity (getting the most out of what you have) best measure of
satisfaction/company performance, not profit, profits are short run indicators, a shift in
the production function instead of moving along curve, production possibilities fr
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