Module 1

oppositemincedΔιαχείριση

28 Οκτ 2013 (πριν από 4 χρόνια και 16 μέρες)

85 εμφανίσεις

*
Please take out paper and writing
implement for your reading quiz…

*
*
What 2 things are central to
economics?

*
What is the real cost of a decision,
a.k.a. the alternative given up?

*
What is the difference between
positive and normative statements?

*
List 1 of 2 main reasons economists
often disagree?

*
What makes macroeconomics
different from microeconomics?

*
*
Scarcity and Choice are central to economics
because, since resources are limited this is the
reason we have to make choices.

*
Since money is limited we make choices about
what we spend it on

*
Since time is limited we have to make choices
about what we do


*
*
The opportunity cost is important to decision
making because it is the real cost, what is
given up when one makes a choice.

*
The opportunity cost of college

*
(fees/potential income)

*
The opportunity cost of going to the park on
your Saturday afternoon

*
(spending Saturday at the beach or studying)

*
*
Microeconomics focuses on the choices of
individuals, households, and firms.

*
Macroeconomics focuses on the overall ups and
downs of the economy.


Ex Micro: What determines the number of
iphones

exported to France.

Ex Macro: What determines the overall trade in
goods, services, and financial assets between the
United States and the rest of the world.

*
*
Positive statements are those based upon fact.

*
Explain the way things are

*
Normative states are based on opinion.

*
Explain the way things
should

be


*
How much would that revenue increase if the toll were
raised from $1.00 to $1.50?

*
Should the toll be raised, bearing in mind the roll
increase would likely reduce traffic and pollution but
impose some financial hardship on frequent commuters?

*
*
Differences in values.

*
Differences in models of analysis or
assumptions

*

*