eco 2023 chapter 1
TRANSCRIPT
http://cell-phones.suite101.com/article.cfm/cell_phone_history
DEFINITION & REASONSTO STUDY ECONOMICS
http://cell-phones.suite101.com/article.cfm/cell_phone_history
THE ECONOMICS RESOURCES
http://cell-phones.suite101.com/article.cfm/cell_phone_history
DIFFERENCES: MICROECONOMICS & MACROECONOMICS
http://cell-phones.suite101.com/article.cfm/cell_phone_history
DIFFERENCES: MICROECONOMICS & MACROECONOMICS
Examples of microeconomic and macroeconomic concernsExamples of microeconomic and macroeconomic concerns
ProductionProduction PricesPrices IncomeIncome EmploymentEmployment
MicroeconomicsMicroeconomics Production/Output in Individual Industries and Businesses •How much steel•How many offices•How many cars
Price of Individual Goods and Services •Price of medical care•Price of gasoline•Food prices•Apartment rents
Distribution of Income and Wealth •Wages in the auto industry•Minimum wages•Executive salaries•Poverty
•Employment by Individual Businesses & Industries•Jobs in the steel industry•Number of employees in a firm
MacroeconomicsMacroeconomics National Production/Output •Total Industrial Output•Gross Domestic Product•Growth of Output
Aggregate Price Level •Consumer prices•Producer Prices•Rate of Inflation
National IncomeTotal wages and salaries
Total corporate profits
Employment and Unemployment in the Economy •Total number of jobs•Unemployment rate
http://cell-phones.suite101.com/article.cfm/cell_phone_history
RATIONAL SELF-INTEREST
http://cell-phones.suite101.com/article.cfm/cell_phone_history
DIFFERENCES
• A statement that represents an opinion, which cannot be proved/disproved.
• Normative economics, also called policy economics, analyzes outcomes of economic behavior, evaluates them as good or bad, and may prescribe courses of action
http://cell-phones.suite101.com/article.cfm/cell_phone_history
THE SCIENCE OF ECONOMICS ANALYSIS
Modify Approach
http://cell-phones.suite101.com/article.cfm/[email protected]
• Each point on the Cartesian Each point on the Cartesian plane is a combination of (X,Y) plane is a combination of (X,Y) values.values.
• The relationship between X and The relationship between X and Y is causal. For a given value of Y is causal. For a given value of X, there is a corresponding X, there is a corresponding value of Y, or X causes Y.value of Y, or X causes Y.
UNDERSTANDING GRAPHS
http://cell-phones.suite101.com/article.cfm/[email protected]
• A A lineline is a continuous string of points, is a continuous string of points, or sets of (X,Y) values on the Cartesian or sets of (X,Y) values on the Cartesian plane.plane.
• The relationship between X and Y on The relationship between X and Y on this graph is negative. An increase in this graph is negative. An increase in the value of X leads to a decreasethe value of X leads to a decrease in the in the value of Y, and vice versa.value of Y, and vice versa.
READING BETWEEN THE LINES
http://cell-phones.suite101.com/article.cfm/[email protected]
A A downward-slopingdownward-sloping line line describes a negative relationship describes a negative relationship between X and Y.between X and Y.
An An upward-slopingupward-sloping line line describes a positive relationship describes a positive relationship between X andbetween X and Y.Y.
POSITIVE AND NEGATIVE RELATIONSHIPS
http://cell-phones.suite101.com/article.cfm/[email protected]
DIFFERENT SLOPE VALUES
b 5
100 5. b
7
100 7.
b 0
100 b
10
0
SLOPE = Change in the vertical distance Increase in horizontal distance
