Welcome to Macroeconomics

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28 Οκτ 2013 (πριν από 3 χρόνια και 9 μήνες)

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Alomar_111

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Welcome to Macroeconomics


Dr. Mohammad Alomar


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Macroeconomics


What are our needs?



Goods and services.



How to get goods and services?



Production factors

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Production Factors:



1
-

Land



2
-

Labor



3
-

Capital

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The Economic Needs:


What are our needs?



How many goods and services?



Can we state them all?

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Scarcity:


Can we satisfy all our needs?



Limited resources.



Economic needs exceed our limited
resources.

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What is Economics?


A social science that is concerned with

the efficient use of scarce resources to

satisfy the maximum amount of our

(economic) needs.

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Scarcity and Choice:


Since resources are scarce, goods and
services produces cannot satisfy all of
our needs.


Therefore: must face a problem of
Choice:


Must decide what we produce and what
we must give up.

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The Opportunity Cost:


The other goods and services that we
gave up in order to produce good (X).



What is your opportunity cost?



Examples.

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The mechanism to solve the economic
problem: different economic systems



1
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Capital economy


2
-

Socialism


3
-

Mixed


4
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Islamic


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What is Macroeconomics?


Examines the economy as a whole or
the aggregates (a collection of
economic units): such as the
government sector, household sector,
and business sector.


Total outputs, total employment, total
income, aggregate expenditure, general
price level.

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What is Microeconomics?


Microeconomics:


Examines a specific economic units
such as consumers, producers, an
industry.