Chapter 1&2
1. What is economics?
Examines how people use their scarce resource to satisfy their unlimited wants
2. Explain 4 general categories of factor of production and payment for resources
- Labor (Human effort example mental or physical) _Wages
- C
Why Provide Fuel Subsidy
Subsidy is an incentive paid by the government to specific corporate seeks to stabilize or lower
prices than market price of goods and services that can enjoyed by the people who require.
Hence, subsidy will encourage producer or
How fuel prices are calculated in Malaysia
By Paul Tan / 15 February 2009
Domestic Trade and Consumer Affairs Ministry Domestic Trade Division Senior Director Ismail
Ahmad has revealed to all how the price of petrol and diesel at the pump is calculated in
AFTER so much hesitation in the past due mainly to fears about its political
impact, the government took the entire nation by complete surprise last
Friday by removing subsidies on the RON95 fuel and diesel.
Their retail prices will from Dec 1 be set by u
1. Explain what relates to governments decision removing the petrol subsidies and
how such move impacts Malaysian?
2. Analyze petrol price subsidy by applying supply-and-demand analysis to story
about petrol subsidies.
3. Explain how the market would work
What is subsidy?
Subsidy is money paid by the government to specific corporate seeks to stabilize or lower prices
than market price of goods and services that can enjoyed by the people who require.
Subsidy effect to the economy?
Long-run equilibrium effec
Acknowledgement
In the process of completing this assignment, we are grateful there are a lot of people assisting
us in this project. Hence, we would like to seize this opportunity to express our gratitude and
thank those who helped us throughout this per
Oligopoly
Oligopoly is a market where there are a few sellers and buyers. Firms in this market influence
one another.
8.3.1 Characteristics of Oligopoly
(a) There are not many firms in the market and the size of each firm is big. Usually firms control
a b
CIX1001: Principles of Microeconomics
Assignment 3
1. Suppose that Omars marginal utility for cups of coffee is constant at 1.5 utils per cup, no
matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10
for the first doug
CIX1001: Principles of Microeconomics
Assignment 2
1. Why do long-run elasticities of demand differ from short-run elasticities? Consider two
goods: paper towels and televisions. Which is a durable good? Would you expect the price
elasticity of demand for
CIX1001: Principles of Microeconomics
Assignment 1
1. Consider the market for eggs. For each of the events listed, identify which of the
determinants of demand or supply are affected. Also indicate whether demand or supply
change. Then draw a diagram for
ESEE2012
Basic Econometrics
Lecture 7
Heteroscedasticity
1
Homoscedasticity
Classical linear regression model:
Yi 0 1 X i i , where Var i | X i E i2 | X i 2
This is called the homoscedasticity (constant
variance) for all X values.
However, in many cros
ESEE2102
Basic Econometrics
Lecture 6
Multicollinearity
Definition
Perfect Multicollinearity: A perfect linear
relationship between two or more independent
variables
Imperfect Multicollinearity: Two or more
independent variables are approximately related
ESEE2102
Basic Econometrics
Lecture 4
Multiple regression
Multiple Regression Model
The relationship between one dependent variables with
two or more independent variables which is a linear
function.
Intercept
Slope parameters
Error
term
Yi 0 1 X 1i 2 X 2
ESEE2102
Basic Econometrics
Lecture 10
Dummy Variables
Dummy Variables
Dummy variables refers to the technique of using a
dichotomous variable (coded 0 or 1) to represent the
separate categories of a nominal level measure.
A dummy variable is a variable
ESEE2102
Basic Econometrics
Lecture 1
Introduction to Econometrics and
Modelling Process
1
Learning Outcomes
At the end of this lecture, students should be able to:
explain the aims of econometrics;
identify independent and dependent variables;
formulate
ESEE2102
Basic Econometrics
Lecture 3
Simple regression: bivariate
model.
I classic linear regression
model
Bivariate population regression
Relationship between X and expected value
of Y, when X take certain values, can be in
linear form:
E(Y|X) = 0 + 1 X
ESEE2102
Basic Econometrics
Lecture 9:
Functional form of regression
model.
1
So far, we have discussed linear model which is in line
with one of the assumptions in CLRM that is the
model is linear in parameters and correctly
specified.
Example of model
Characteristics of Oligopoly
Some economists (and occasionally in this chapter) may consider any type of market structures
between perfect competition and monopoly, as oligopoly.
Therefore monopolistic competition and duopoly are a sub-group or a specia
Title Layout
Subtitle
Characteristics of Monopolistic Competition structure
Monopolistically competition is defined as a market (industry) in which there is many firms
selling differentiated product.
This type of market is the most common as they includ
Title Layout
Subtitle
Characteristics of Monopoly Market
Monopoly markets
1) One Firm: It is assumed that there is one single firm
2)No close substitute: The monopoly firm produces good or service
(product) that has no close substitute, thus avoid comp