1. Describe demand and explain how it can change.
2.Describe supply and explain how it can change.
3.Relate how supply and demand interact to determine market
4.Identify what government-set prices are and how they can cause
Outline Chapter 1
1. The Ten Key Concepts to retain for a lifetime
2. The features of the economic way of thinking
3. The role of economic theory in economics
4. The distinction between microeconomics and macroeconomics
5. The nature of the economic probl
Principles of Macroeconomics
A) The relative scarcity of resources makes the operation of any economy a matter of
choosing between alternatives. The reality is our economic wants far exceed the
productive capacity of our
Principles of Economics
Chapter 1: Thinking Like an Economist
Principles of Economics
APPENDIX: VERY IMPORTANT THAT
YOU CAN WORK THROUGH THIS!
Outline of Chapter
Thinking Like an Economist
What is Economics?
MICROECONOMICS OF PRODUCT MARKETS
Law of diminishing marginal utility
Gains in satisfaction decline as additional units are consumed
Utility is want-satisfying power
Total Utility and Marginal Utility
Total utility: total amount of satisfactio
A) Economists worry about unemployment because the economy does well when people
are spending money. If people reduce their spending due to unemployment, sales of the
businesses would drop which would result in lower Gross Domestic. B
In how many years will real GDP per person in Canada double, given its average growth rate during the past century?
A. 100 years on average
B. 70 years
C. 35 years
D. 25 years
Laurie works 8 hours and produces 7 units of goods per hour. Iris works 6
The market system and circular flow
Differentiate between a command system and a market system
2. List the main characteristics of the market system
3. Explain how the market system decides what to produce, how to
produce it, and who obtains it.
Instructions for Assignment: 9% - due on Tuesday, February 23, 2016.
Assignment Topic: Gross Domestic Product. In this assignment you will discuss the Gross
Domestic Fluctuations (GDP) of a country in the last 5 years and factors influencing the GDP.
1. Gross Domestic Product is defined as
a. the market value of all final goods and services produced within a country in a given
period of time.
b. the market value of all final goods and services produced by a country's citizens in a
given period of time
In-Class Exercises/Assignment III
(Chapter 27: Expenditure Multipliers: The Keynesian Model)
You are given the information in the table to the right about the economy of the United
a. Calculate the marginal propensity to consume.
Chapter 4 and 5
To understand how economy works, the economists could look at number of data
A) the number of new residential building permits.
B) the amount of new orders for capital goods.
C) the number of manufacturers new orders for cons
1.To calculate the GDP using the income method, you must use the formula:
GDP = [Wages, salaries, and supplementary labor income ($111)] + [Profits of
corporations and government enterprises before taxes ($32)] + [Interest and
Use the following to answer questions 1-3:
1. Refer to the above diagram. The level of government spending:
is equal to tax collections at each level of GDP.
is the same at all levels of GDP.
varies inversely with the level of GDP.
Guidelines and Sample Questions for the Mid Term Examination, March 11, 2016 20%
The Mid Term Examination is for 20% of the course and it will consist of the Short Answer and Multiple
Choice Questions. Multiple Choice questions will be similar to the thre
CHAPTER 1 - Introduction to Microeconomics:
1.2 The Economic Way of Thinking:
Economics: the study of how individuals and society choose to use the
scarce resources that nature and previous generations have provided
Marginal analysis: compare
Limits, Alternatives and Choices
Economic way of thinking, the economy as a whole and the
standard of living.
study of how individuals and society choose to use the scarce
resources that nature and previous generations have provide
Income-consumption and income-saving relationships
occurs when saving value is negative
planned household spending
a direct relationship between consumption and disposable income
Breakeven level of income
List and discuss several key facts about Canadas international trade.
Canada and International Linkages
Canada and World Trade
o Canada almost entirely dependent on other countries for bananas, cocoa,
coffee, spices, tea, raw silk
1. The functions of money
Medium of exchange for goods and services
Measure of value: a unit of account for expressing price
Store of value
How rapid inflation can undermine moneys ability to perform each of its three functions.
People will only
Ten key concepts to retain for a lifetime
Facing Tradeoffs- scarcity in relation to wants means you face
tradeoffs; therefore you have to make choices.
Opportunity costs- the cost of the choice you make is what you give
ECON-1020 Assignment 3
A) The difference between an equilibrium level of GDP and a level of GDP that is in
disequilibrium is an equilibrium level of GDP is an equilibrium output that creates
spending that is sufficient enough to produce that ou
Chapter 1 Suggested Solutions (Hubbard)
2.1 Yes, even Bill Gates faces scarcity because his wants exceed his resources. Gates has
established a foundation with billions of dollars to spend on worthy causes like eradicating
malaria and reducing homelessnes
Aggregate demand and Aggregate supply,
Monetary Policy and Fiscal Policy
1. Use the AD-AS Model to answer this set of questions. Suppose you are given the following
Long run aggregate supply (LRAS): Yfe = 3000
Short run aggregate
University of Manitoba
Department of Economics
ECON 1020, A06
Introduction to Macroeconomic
116 St Pauls College
Office Hours: Tues 2.30 3.30
Thurs 12.00 12.50
and by appointment