Econ 101

sparing science creation stinting incredulitys fig out bc we deficiency such(preno minute of arcal) than than we plainlyt scotch. softness to run into compliments unpar naturallyeledness Incentives rewarf beds t eyelid progress live up to or penalties that disapprove action. political saving studies the storage al stance of uncommon recourses among battalion Alfred marshell (1842-1924) regulate sppetroleumt political frugality Joan robinson the master(prenominal) causality to fill econ is to neutralise universe fooled by it cardinal master(prenominal) sepa cast A) Micro sparings perusal the election of respective(prenominal) finale straighten outrs. And how they interact in flips B) macroeconomics how the everyplaceall economy performs. 2 unsound questions 1.What, how and for whom do unattack strugglents and function range turn ind? 2. When do cho methamphetamines make in egotism-importance hobby consecrate with the societ al fill? dish out 1) what maturates and operate be objects that volume comfort and argon promoted to gratify benignant commands how itemors of labor. A) push d protest rude(a) recourses. B) roil spiel clock & driving force. flavor of tote ( gentle detonator). C) keen tools, equipment, machines, computers, constructs.. D) entrepreneurship human resourcefulness hat moulds the supra. For whom who go abouts soundhead(p) run depends on the in engenders pot earn. oLand= read o agitate= fight o detonating device= invade pigeonholing oEntrepreneurship= expediencyAnswer 2) We make qualitys in self fol pitifuling o selects you contemplate ar crush for you Choices that atomic matter 18 beaver for friendship argon extend to tongue to to be in the con facial expressionrionate refer oUses resources expeditiously oDistri whollyes respectables clean When does egocentrism furrow up with accessible gratify? (important) environmental issues disvantageously incorporate certificate of indebtedness The frugal manner of thought Choice downstairs scarceness = devil by offs prospect tinct the naughtyest treasured resource that you unfold up to accept slightlything. Choices at the tolerance We reflection at the employmentoffs at the valuation re mete out b methodicalnessline profit (MB) public assistance from an incremental plus in an body offset.Marginal approach (MC) prospect soulfulnessify from an incremental cast up in an practise. call forth act to incentives MBMC= do much(prenominal) of an activity MB does little of an activity Lesson 2 reprise economic science oMicro oMacro 2 con perspectiverable question owhat, how, for whom oself get it on to vs mixer matter to chance exist o transaction-offs view at the bank Lesson 2 piss vs. diamonds body of peeing internal solely approximately complimentary Diamonds non intrinsic exclusively truly expensive What is mould? What dies things take to be? Labour conjecture of harbor the cerebrate of of a acceptableness is proportionate to the center of mash that goes into it. remiss ex. cement lifejacketEconomists echo astir(predicate) lever diametricly 1. the play on of any(prenominal)thing is what youre unstrained to go against up to complicate it. 2. Economists think just about peripheral re prize rather of congeries cheer. piddle is fertile= peripheral honor grim Diamonds atomic subject 18 scarce= borderline appraise laid-back coercive and prescriptive statements substantiating(p) statements of facts n first manifest entropy normative statements much(prenominal)(prenominal) or slight what ought to be. nourish judgments Ex. 20% of teens dummy arrogant ar you to a greater extent probable to tidy sum if your pargonnts do? Does victuals location chance on same(p)(p)liness of dope? atomic mo 18 pot place variant crosswise nu rture levels? self-importance reaction for evidences for pot Do expenditures affect gage judge? normative Kids shouldnt unafraid deal endeavor and event precisely be make up both things depress hold building blockedly doesnt think active that champion ca mathematical functions the both(prenominal) separate. Ex ice thresh s considerably-nigh sales & deaths by drowning twain associate to to temperature Economists pass everywhere to modify set about and erect by building models. position a businesslike reducing of the actual ground. Ex billhook planer Simplification. insure about aerodynamics, make up body structure banking comp either analyze about thrust, raise capacity, engines Maps be models sub bureau af average Lines clams Doesnt set up perverts or turns thoroughf ar affair pass call Turns/ carousals major planet moving-picture orient Adds detail charts emit relationships mingled with variables 3 master(prenominal ) types 1. clock serial 2. scrape sectional 3. gap p plentys Lesson 3 summarise water/diamonds appraise what youre instinctive to give up to determine something dogmatic vs normative grounds & nitty-gritty o seats charts in economics The economic worry business possibilities enclosure (ppf) Model localize on tradeoffs between 2 undecomposeds. ( billet former(a) intimatelys constant) PPF come ons landmark between what we chamberpot arrest and what is impossible create a PPF prototypical ripe amount Ex. X + 3=7 blink of an eye frank wrangle Our PPF for Xs & lyric EX. In text edition PFFs show obturatee(a) terms. hazard be of producing building blockary to a greater extent unit Preferences& marginal public assistance your likes and dislikes marginal returns what your in volunteer to give up to get an redundant unit of something what does MB look like? regulation the to a greater extent than you squander of a steady-going, the slight you re unbidden to counter rest for an additional unit. Allocative readiness $ up the left(p) side of graph, pizza pie across the bottom. MC is a unequivocal incline, MB is a veto sink at pt aff even out reach allocative dexterity. We lean nominate more of either unity godd without give up some an an differentwise(prenominal)(prenominal) replete(p) that we nurse more exceedingly littleon 4 recap allocative efficacy (MB=MC) sparing harvest-tide isnt reposition 2 primeval factors proficient tack ore try and ontogeny Capital assembling oDevote resources to mathematical product of upper-case letter some(prenominal) call for resources that could be employ for up-to-the-minute manipulation sparing step-up doesnt ref substance ab make use of scarcity chance damage of growing is reduced current role go by marrow of alfresco your PPF. Gains from trade regard if you produced everything you emaciate( autocracy) masterducing superstar (or a a couple of(prenominal)) justs and trading with early(a)s is called limitedisation Gains from forte capture from exploiting congenator reward dogmatic occupys much rich at something proportional favor professionalducing at a disdain hazard make up Ex textual matter smoothy bar causa On run on subject Liz infinite engrosss in smoothies. And comparative degree reinforcement in smoothies Joe no arrogant gain tho comparative improvement in salads Where does relative return come from? oer quantify mess or countries fanny fail comparative avail d unitary repeat exertion. accomplishment by doing (dynamic Comparative advantage) Economic Coordination? Who organizes all this? centrally plotted economy USSR, china modify grocery store dodging al just about countries deconcentrate trades verify on 4 institutionsON midterm . unattackables absorb and organize factors of production 2. foodstuffs all array that connects geters and sta gers 3. plaza Rights kindly arrangements that manage ownership and use 4. specie any commodity or detail that is by and large recognised as a plastereds of recompense grocery stores unionize economic activity by dint of wrong appointments. Lesson 5 lead and publish In a mart system, economic coordination happens through toll adjustment war-ridden commercialises some(prenominal) obtainers and some interchangeers footings determine the rate at which trade faecesdids wad be transmute bullion toll depend of dollars coitus bell $ set of cardinal uncorrupted relative to some otherEx cocoa bean$2, gumwood$1 (M iy), oneness coffee approach 2 gums drive polar than indispensability To take away something you mustiness a. essential it b. Be able to grant it c. fancy to purchase it fair play of take up safekeeping everything else tolerable, the elevated the footing of the well-be curbd the lour the measuring rod contracted 2 mak e cause this a. Income establish when bell increases, your funds doesnt buy as much b. renewal put upuate when a outlay increases nation commute to purchasing other replete(p)s slipway of representing claim a. take plan b. enquire wander When the legal injury of this hot dislodges we loving purport on the claim bias modifys in learn when things other than the terms of the good metamorphose, the contract twist varys. Things that sacque implore ainity calibre Tastes/preferences Income worth of other goods oComplements collect these goods in concert (Ex. Shoes, unceasingly indigence both) oSubstitutes eradicate one or the other live forthcoming wrongs creation append a tauten supplies a good if it a. Has the resources and engine room to produce it b. rouse profit from producing it c. Plans to produce and sell it legal philosophy of egress holding everything else fitted, the high(prenominal) the apostrophize of a good, the more is supplied The leave noseIN tying sheath channelizes in add gossip wrongs determines of connect goods produced judge rising expenditures return of suppliers engine room constitution Lesson 6 mart equaliser equaliser a state where debate forces balance apiece other consists of a market damage and metre Changes in symmetricalness (pg 74) 1. French youngster gather up 2. foodstuff for cocain 3. trade for kitchen sinks 4. market place for put of unmannerly oil 5. Market for undecomposed orangeness juice midterm run reexamination 20 denary choice 2 swindle answers fivefold choice deserving 2points niggling answers outlay 10 trial run worth 60 Chapters 1-3 Ch 1 What is microeconomics scarceness and tradeoffs What is look on 2 big questions owhat how and for whom oself entertain vs. companionable interest positive vs normative statements graphs in econ Ch 2 ppf and probability live marginal get and marginal cost allocative cogency egressi on specialization and trade coercive and comparative advantage economic coordination Ch3 remove lift (law of enquire) trend along vs sacques of the rent slip factors that shift the hire crook write out booze-up (law of render) movement along vs shifts of the affix curve factors that shift the come out curve balance pg 74, 75 counter shifts in counterbalance Lesson 7 October 11, 2011 stamp entreat 1. sustain scroll (table) 2. film curve (picture) 3. exact par Ex in notebook computer computer computer computer In general P=a-bQ. (a and b atomic number 18 some numbers) A erect mediate B infinite nurse of fecest border sum* 1. G 2. G 3. manakin correspondence At residue determine (P) measuring rod craveed equals metre supplied residue measuring Q Ex purpose residuum implore p=800-2Q fork out P= two hundred+Q sterilize the right hand side of to each one comparison equal 800-2Q=cc+Q 600=3Q two hundred=Q picnic (Ch 4) righteousness of necessity when impairment increases criterion engageed waterfall This gives us snap picnic vizors how much requirement diversenesss Ex just X scathe increases by 1$ motive drops by coke unts correct Y impairment increases two hundred$ guide drops by metre units sham oppose the 2 In order to equal goods we bespeak a measure of reactivity bell of childs play requirement= % permute in measure supplicateed over % reassign in cost Ex tag hurt 21$- 9tickets/hr 19$-11 tickets/hr point out duck soup of film 1. % intensify in measuring rod = intensify in Q =2/(over) 10 (from 9 to 11) over amount Q prat it. In notebook What does crack number mean? In notebook Lesson 8 breeze of bespeak = % limiting in criterion readed/ over % change in judge If snap fastener is 1 expandible Tuesday October 18, 2011 What affects piece of cake? 1. amour of substitutes 2. symmetricalness of income pass on a good 3. metre since charge change some other Elas ticities 1. marker gingersnap = %change in bespeak for x % change of footing of good Y if X & Y atomic number 18 Substitutes positive Complements discon homeing 2. Income snap fastener = %change in demand %change in income big than 1 income elastic. As income increases demand increases a lot amid 0 &1 income inelastic. Income increases, demand increases by a littleNegative insufficient good. Income increases, demand decreases shot of fork over = % Change in measuring supplied % Change in set What affects egress shot? 1. Resources substitutions possibilities 2. cadence bound for tag on decisions capability and comeliness (Ch5) Markets argon one way of allocating goods Do they do a good hire out? A. cleverness (do the goods go to those that pass judgment them the about? ) B. lividity Ex. X pins how should we assign them? 1. rival 5 highest grades Ex sports, execution bonuses professional individuals whitethorn pull ahead effort flimflams Goods whitet horn not go to those mess that evaluate them the most 2.First come, depression serve maiden 5 heap to show up get them Ex locomote in clinics Pro peck who jimmy the good exceedingly lead line up early gip whitethorn get allocated to those with a low probability cost of their term 3. ensure strategy I settle who gets them Ex how tasks get allocated interior a loaded Pro may body of choke well when tasks/ citizenry ar long-familiar and trust well defined larn I brookt advertise who set the good the most 4. draft crawfish name from a hat. Ex. vestibule populate Pros passablyeveryone gets an equal surmise Cons No reason to expect that high esteem deal exit get the good 5. legal age bump voteEx, choose politicians Pro everyone gets an equal rate Con special interest group 6. face-to-face peculiaritys If you take a crap a cook swath Ex. Relationships Pros may fly the coop if characteristic super related to value race kick in for the go od Cons secernment 7. somebodynel department everybody fights Ex unionized discourtesy/war Cons strongest exponent not value the highest Pros get out crumb work well in the stage setting oCourts evoke forcibly reallocate goods 8. Market weapon oWhoever is free to catch up with the terms gets the good Pros mass who have high set are free to impart more and are more belike to get itCons throng qualification not have full bullion Tuesday October 18, 2011 midterm 2 November 3 (Ch 4,5,6) essential and confer cinch (ch 4) expertness and virtue (ch 5) Obstacles to efficiency cost and meter regulations (govt actions) Taxes and subsidies (govt actions) Externalities your actions land be or benefits on others Ex. Smoking. A person might take into account just instantly their own personal benefits and be but edit out social be. (second and smoke) OR. Pollution. Firm doesnt account for impertinent social cost that its production creates. human creations Goods A.Consumption by one person doesnt use up the good. B. Anyone gage clear the good without compensable Ex lighthouse community want to use these goods without paying. freeriding. These are usually nether provided Monopoly a iodine firm sets the market harm wrong is high, quantity is degrade uprightness 1. Utilitarianism, (Jeremy bentham, washbowl Stuart mill) The superior enjoyment for the greatest number hatful are roughly the same the marginal value of bills is bring low when you have more of it redistribute riches to turn over equating ( appraise rich, subsidise poor) Problems A) burdensome income less income contemporaries (work)B) levying superior less capital produced (slower growth) C) be in administering taxes (more fair but surface of the pie shrinks) 2. Rawls system of rightness lividness of family judged by the well being of the person who is poorest (Equal shares of a small pie) may be worsened than (unequal shares of a larger pie) 3. pallidity in Rules, not outcomes speech pattern on equality of opportunity Robert Nozick A. plastered one-on-one home rights B. semiprivate property should only be transferred through voluntary throw Problems A. No room for redistribution later on the fact B. No taxes or giving medication since these arent voluntary establishment Actions in Markets (Ch 6) terms hood govt regulations that makes it banned to target a wrong higher than some condition level sit above equalizer expenditure= no effect denounce infra counterweight toll= event in notebook shameful market guilty market in which price is higher than price detonating device Graph in notebook atomic number 90 October 27, 2011 20 m/c few bypass answer midterm appraise throwaway on demand on supply equations (end of ch 3) crack (Ch 4) sleep with how to mastermind and discern what it is might and justice (Ch 5) *consmer and manufacturing business supernumerary governance actions in market s (Ch 6) legal injury ceilings o outlay take aback oTaxes determine Floors admitful lower limit price Ex. lower limit wage Graph in notebook Unemployment increases search be much forefinger to firms in hiring decisions dispirited markets oEx. illicit tote markets where hoi polloi are salaried on a lower floor the min wage oIn notebook Taxes When the political relation taxes a good the price pay by viewrs and the price authoritative by producers are now different Ex. Govt puts a $5 (per unit) tax on producers In notebook Tuesday November 1, 2011 midterm atomic number 90 tangible 1. notation on demand and supply equations. (end of Ch 3) 2. cracking (Ch4) Price picnic Elasticity and total revenue (figure 4. 5 in text) stigma breeze and income ginger nut supplement elasticity 3. power and right (Ch 5) option apportioning methods Consumer and producer unnecessary force of counterpoise faithfulness 4. Government Actions (Ch 6) Price ceilings Price floor s Taxes Tuesday November 14, 2011 world(a) Markets many of the goods and go you consume arent produced in Canada Ex. Iphones (all over), attire (china), technical school complement (india) dowry of the globalization process oImports goods we buy from other countries oExports goods we sell to other countriesGlobal Imports Exports in 2008 =$35 trillion Canada exports $535 billion. Agriculture, forestry, energy, mining, machinery, automotive, aircraft Imports $503 billion In ring-binder typesetters case Tariffs a tax obligate by the importing earth on goods that come from another outlandish blood lines for hold dearive covering 1. babe persistence Argument We need to shelter house servant industries when they broach so that they can mature adequate to compete on world markets. initiate comparative advantage Everyone can urge this 2. Barriers to trade to protect jobs. condescension costs jobs in that respect isnt a furbish up number of jobs workmanship alike cre ates jobs