The Study of Economics
Students will learn in this module:
How scarcity and choice are central to the study of economics.
The importance of opportunity cost in individual choice and decision making.
The difference b
HOMEWORK 1 (Demand and Supply) ECO41 UDAYAN ROY
This homework assignment tests your understanding of the theory of supply and demand. Any
textbook on the principles of economics will cover this material. See for example my PowerPoint
lecture notes and add
and Molecular Formulas
loosely based on Chap 4 Sec 2 & 3
of Jespersen 6th ed
Dr. C. Yau
Particulate vs. macroscopic levels
When we see the formula H2S
at the particulate level we should be
Measuring Output (GDP)
The Big Questions
does GDP tell us about the
How is GDP computed?
What are some shortcomings of GDP
I. Importance of
A. Measures level of economic production at some point
in time and
Economics Vocabulary Chapter 5 Price Controls
Price Controls are an attempt to set prices through government involvement in the market
Price ceilings are legally established maximum prices for goods or services
Black markets are illegal markets that arise
Chapter 3 The Market at Work Vocabulary
A competitive market is one in which there are so many buyers and sellers that each has only a
small impact on the market price and output. The impact is small enough to be called negligible
An imperfect market is o
Economics Vocabulary Graphs in Economics Chapter 2A
A variable is a quantity that can take on more than one value
A scatterplot is a graph that shows individual (x,y) points
Variables move in the same direction, this is called a positive correlation
Economics Vocabulary Chapter 2 - Model Building and Gains from
A positive statement can be tested and evaluated; it describes what is
A normative statement cannot be tested or validated
Ceteris paribus is the concept under which economists examine a
Economics Vocabulary The Five Foundations of Economics - Chapter
Scarcity is the term to describe limited resources
Economics is the study of how people distribute their limited resources in order to satisfy
their unlimited wants
Microeconomics is the s
Macroeconomics Chapter 2A Graphs in Economics Outline
Graphs that Consist of One Variable
a. There are two ways to display data with one variable: bar graphs and pie charts.
A variable is a quantity that can take on more than one va
a.Economists analyze how economic decisions are made. Some examples of economic decisions are buying a home, or leasing a car. Wants are generally unlimited, and resources are
unfortunately, limited. The term to describe limited resources is scarcity. The
Macroeconomics Chapter 3 The Market at Work Outline
What are the Fundamentals of Markets?
a. Markets are a way to organize goods and services for consumers. In a Market
economy resources are allocated among households and firms with lit
Economics Chapter 2 Model Building and Gains from Trade Outline
How Do Economists Study the Economy?
a. Economics, as it is a social science, uses the scientific method.
The Scientific Method in Economics
a. The scientifi
Macroeconomics Chapter 1 The Five Foundations of Economics
What Is Economics?
a. Economists analyze how economic decisions are made. Some examples of
economic decisions are buying a home, or leasing a car. Wants are generally
Demand and Supply
I. Market: created when
buyers and sellers are
brought together to
complete a transaction
Doesnt have to be a physical
Prices are determined by the
forces of supply and demand.
A. Perfectly Competitive Market
Many buyers and sell
Purpose of this Course
Main goal of this course: provide you with
the tools you need to be able to make
your own assessments about the
Discover how the world works
Be an informed citizen
How to live your lif
1. The income effect is the change in the quantity demanded of a good as the consumer
substitutes the good that has become relatively cheaper for the good that has
become relatively expensive.!
2. The midpoint method is a technique for calculatin
Module 46 Quiz
1. For goods that absorb a _ share of the typical consumer's spending, the _
effect is essentially the sole reason why the demand curve slopes downward.
a. Small; substitution effect
2. If a good is an inferior good and its price rises: