the music was composed by james horner do you recognize it? microeconomics welcome to ab 224
TRANSCRIPT
The music was composed by James Horner
Do you recognize it?
Microeconomics Welcome to AB 224
Guten Tag meine Damen und Herren. Willkommen bei Mikroökonomie.
Es tut mir leid. Sie verstehen kein Deutsch
Slide 2
Guten Tag meine Damen und Herren. Willkommen bei Mikroökonomie.
Es tut mir leid. Sie verstehen kein Deutsch
Slide 3
Guten Tag meine Damen und Herren. Willkommen bei Mikroökonomie.
Es tut mir leid. Sie verstehen kein Deutsch
Chào thưa các quý ông. Đến kinh tế vi mô.
Tôi xin lỗi. Bạn không hiểu tiếng việt.
Slide 4
Guten Tag meine Damen und Herren. Willkommen bei Mikroökonomie.
Es tut mir leid. Sie verstehen kein Deutsch
Chào thưa các quý ông. Đến kinh tế vi mô.
Tôi xin lỗi. Bạn không hiểu tiếng việt.
Slide 5
Guten Tag meine Damen und Herren. Willkommen bei Mikroökonomie.
Es tut mir leid. Sie verstehen kein Deutsch
Chào thưa các quý ông. Đến kinh tế vi mô.
Tôi xin lỗi. Bạn không hiểu tiếng việt.
Slide 6
Good day, or greetings, ladies and gentlemen. Welcome to Microeconomics.
I’m sorry. You do not speak German
or Vietnamese.
Guten Tag meine Damen und Herren. Willkommen bei Mikroökonomie.
Es tut mir leid. Sie verstehen kein Deutsch
Chào thưa các quý ông. Đến kinh tế vi mô.
Tôi xin lỗi. Bạn không hiểu tiếng việt.
Slide 7
Good day, or greetings, ladies and gentlemen. Welcome to Microeconomics.
I’m sorry. You do not speak German
or Vietnamese.
It is much easier to communicate when you know the language
Guten Tag meine Damen und Herren. Willkommen bei Mikroökonomie.
Es tut mir leid. Sie verstehen kein Deutsch
Chào thưa các quý ông. Đến kinh tế vi mô.
Tôi xin lỗi. Bạn không hiểu tiếng việt.
Marginal Opportunity Costs, Production Possibility Frontier, Diminishing
returns to capital, time and place utility, marginal price elasticity,
perfect substitute, invisible hand, consumer surplus, supplier surplus
Slide 8
Guten Tag meine Damen und Herren. Willkommen bei Mikroökonomie.
Es tut mir leid. Sie verstehen kein Deutsch
Chào thưa các quý ông. Đến kinh tế vi mô.
Tôi xin lỗi. Bạn không hiểu tiếng việt.
Marginal Opportunity Costs, Production Possibility Frontier, Diminishing
returns to capital, time and place utility, marginal price elasticity,
perfect substitute, invisible hand, consumer surplus, supplier surplus
Slide 9
Guten Tag meine Damen und Herren. Willkommen bei Mikroökonomie.
Es tut mir leid. Sie verstehen kein Deutsch
Chào thưa các quý ông. Đến kinh tế vi mô.
Tôi xin lỗi. Bạn không hiểu tiếng việt.
Marginal Opportunity Costs, Production Possibility Frontier, Diminishing
returns to capital, time and place utility, marginal price elasticity,
perfect substitute, invisible hand, consumer surplus, supplier surplus
The key to learning economics is learning its language
Slide 10
Welcome to AB224 -Micro Economics – Unit 1
Your Instructor:Enrico L. “Sam” DiGiammarino, Jr.
Please call me Sam
My wife, Brenda and me with our “off road vehicle”
Slide 1
Miss Abbey,
1 of my 3 “little girls”
Everyone needs a toy in which to drive to the airport.
Slide 11
SyllabusYour Reading Material
Slide 35Slide 12
Microeconomics Second EditionAuthors: Paul Krugman and Robin Wells
In paragraph citation: (Krugman, P., & Wells, R., 2009, pp. x-y)
Reference:
Krugman, P., & Wells, R. (2009). Macroeconomics, Second Edition.
New York: Worth Publishers.
Your
eBook
In
Doc Sharing
Slide 13
SyllabusYour Reading Material
Course Outline
Slide 35Slide 14
AB224 - Microeconomics• Unit 1 = First Principles• Unit 2 = Economic Models: Tradeoffs and Trade• Unit 3 = Supply and Demand & Consumer and Producer Surplus• Unit 4 = The Market Strikes Back & Elasticity• Unit 5 = The Rational Consumer • Unit 6 = Behind the Supply Curve: Inputs and Costs• Unit 7 = Perfect Competition and the Supply Curve & Monopoly • Unit 8 = Oligopoly & Monopolistic Competition and Product Differentiation• Unit 9 = Externalities• Unit 10 = Reflection Slide 21Slide 15
SyllabusYour Reading Material
Course Outline
School of Business Policies
GRADING RUBRIC – Discussion Board
Slide 35Slide 16
The Discussion Board Requirement:
Students are to post a minimum of three posts per discussion thread. One initial response and two replies to their classmates
Posting on a minimum of three different days, for example: Wednesday, Friday and MondayThe first post must be made by Saturday.
Slide 17
Quality (40%) of your post will be measured on the following criteria:All assigned discussion questions were answered completelyPosts were on topic and unique in contentAll posts demonstrated analysis of the topic
Participation Guidelines (30%) will be measured on the following criteria:Initial post no later than Saturday, midnight ESTPosts made to each discussion question on at least 3 different daysThe original post to be no less than 100 words
Clarity and Organization of Writing (20%) of your post will be measured on the following criteria:Posts were organized and logical No spelling or grammatical errorsReferences were used and cited properly
Professional & Netiquette (10%) in your post will be measured on the following criteria:Respect and consideration toward peers/instructorsAppropriate language Professional use of abbreviations and acronyms Slide 18
SyllabusYour Reading Material
Course Outline
School of Business Policies
GRADING RUBRIC – Discussion Board
Online Communications Guidelines
Different Kinds of Assignments
Slide 35Slide 19
Points Activity
245 (35 each) - Weekly Discussion Threads (Units 1 - 9)
240 (30 each) - Weekly Assignments (Units 1 - 9)
------------------1,000 Total Points
Slide 20
Points Activity
245 (35 each) - Weekly Discussion Threads (Units 1 - 9)
240 (30 each) - Weekly Assignments (Units 1 - 9)
10 - Research Paper Topic selection (due Unit 1)
50 - Research Paper Outline (due Unit 4)
50 - Research Paper Draft (due Unit 6)
------------------1,000 Total Points
Slide 21
Points Activity
245 (35 each) - Weekly Discussion Threads (Units 1 - 9)
240 (30 each) - Weekly Assignments (Units 1 - 9)
10 - Research Paper Topic selection (due Unit 1)
50 - Research Paper Outline (due Unit 4)
50 - Research Paper Draft (due Unit 6) 200 - Research Paper (due Unit 8)
------------------1,000 Total Points
Slide 22
Points Activity
245 (35 each) - Weekly Discussion Threads (Units 1 - 9)
240 (30 each) - Weekly Assignments (Units 1 - 9)
10 - Research Paper Topic selection (due Unit 1)
50 - Research Paper Outline (due Unit 4)
50 - Research Paper Draft (due Unit 6) 200 - Research Paper (due Unit 8)
180 - F I N A L E X A M (60 questions due Unit 10)
------------------1,000 Total Points
Slide 23
Points Activity
245 (35 each) - Weekly Discussion Threads (Units 1 - 9)
240 (30 each) - Weekly Assignments (Units 1 - 9)
10 - Research Paper Topic selection (due Unit 1)
50 - Research Paper Outline (due Unit 4)
50 - Research Paper Draft (due Unit 6) 200 - Research Paper (due Unit 8)
180 - F I N A L E X A M (60 questions due Unit 10)
45 - Unit 10 Writing Assignment------------------1,000 Total Points
Slide 24
Without Extenuating Circumstances: Up to one week (1-7 calendar days) late 20% deduction in points
After one week (8-14 calendar days) late 30% deduction in points
No work will be accepted more than two (2) weeks after the due date.
LATE POLICY
Slide 25
SyllabusYour Reading Material
Course Outline
School of Business Policies
GRADING RUBRIC – Discussion Board
Online Communications Guidelines
Different Kinds of Assignments
Paper Submissions
University Policies
Plagiarism
Tutoring
Slide 26
SyllabusYour Reading Material
Course Outline
School of Business Policies
GRADING RUBRIC – Discussion Board
Online Communications Guidelines
Different Kinds of Assignments
Paper Submissions
University Policies
PlagiarismTutoring
Slide 27
SyllabusYour Reading Material
Course Outline
School of Business Policies
GRADING RUBRIC – Discussion Board
Online Communications Guidelines
Different Kinds of Assignments
Paper Submissions
University Policies
PlagiarismTutoring
Slide 28
SyllabusYour Reading Material
Course Outline
School of Business Policies
GRADING RUBRIC – Discussion Board
Online Communications Guidelines
Different Kinds of Assignments
Paper Submissions
University Policies
Plagiarism
Tutoring Slide 29
Slide 30
Scarcity
Slide 31
Opportunity Costs
?
Slide 32$ ? $
Trade-offseither, or
Slide 33Costs vs Benefits
MARGINAL COST ANALYSIS
How much for a little bit more? Is it worth the cost?
Slide 34
Slide 35
What is the last thing that you bought?
Why did you buy that particular brand?
Why did you buy it from that particular store?
Slide 36
What is the last thing that you bought?
Why did you buy that particular brand?
Why did you buy it from that particular store?
Does it matter to you that the owner of the other store desperately needed that sale to make “ends meet” ?
Slide 37
What is the last thing that you bought?
Why did you buy that particular brand?
Why did you buy it from that particular store?
Does it matter to you that the owner of the other store desperately needed that sale to make “ends meet” ?
We each do what we feel is in our BEST INTEREST!
Slide 38
What is the last thing that you bought?
Why did you buy that particular brand?
Why did you buy it from that particular store?
Does it matter to you that the owner of the other store desperately needed that sale to make “ends meet” ?
We each do what we feel is in our BEST INTEREST!
So does everyone else (consumers AND businesses)!
Slide 39
What is the last thing that you bought?
Why did you buy that particular brand?
Why did you buy it from that particular store?
Does it matter to you that the owner of the other store desperately needed that sale to make “ends meet” ?
We each do what we feel is in our BEST INTEREST!
So does everyone else (consumers AND businesses)!
Adam Smith’s “invisible hand” at work
Slide 40
Slide 41
People usually exploit opportunities to make themselves better off.
Incentives ?
Slide 42
Slide 43
Thought experiment # 1:Tomorrow, some catastrophe strikes and civilization, as we know it, ends.
You, and your family are the ONLY survivors.
What must you do to continue living?
Water?Food ?Shelter?Clothing?
What technologies can you use?
What resources do you have?
Slide 44
Thought experiment # 1:Tomorrow, some catastrophe strikes and civilization, as we know it, ends.
You, and your family are the ONLY survivors.
What must you do to continue living?
Water?Food ?Shelter?Clothing?
What technologies can you use?
What resources do you have?
Must do
every-thing
for yourself
Slide 45
Thought experiment # 2:Tomorrow, some catastrophe strikes and civilization, as we know it, ends.
You, and your family survive.
What must you do to continue living?
Water?Food ?Shelter?Clothing?
What technologies can you use?
What resources do you have?
Also, many of your neighbors survive.
How do things change?
There are gains from trade
Slide 46
Slide 47
Slide 48
Markets seek equilibrium
No individual would be better off
doing something different
Should lead to best efficiency ???
Slide 49
Things that it may be helpful to rememberwhen you get to the end of the course
Slide 50
Things that it may be helpful to rememberwhen you get to the end of the course
Microeconomics deals with:
individual units in the economy.
Slide 51
Things that it may be helpful to rememberwhen you get to the end of the course
The study of a single firm and how it determines prices would fall under:
microeconomics.
Slide 52
Things that it may be helpful to rememberwhen you get to the end of the course
A key theme fundamental to all of economics is:
people have unlimited wants facing limited
means to satisfy them.
Slide 53
Things that it may be helpful to rememberwhen you get to the end of the course
Opportunity cost is:
the value of the best alternative forgone in making any choice.
Slide 54
Things that it may be helpful to rememberwhen you get to the end of the course
The economic way of thinking has to do with:
making choices at the margin.
Slide 55
Things that it may be helpful to rememberwhen you get to the end of the course
A choice made ________ is a choice whether to do a little more or a little less of
something.
at the margin
Slide 56
Things that it may be helpful to rememberwhen you get to the end of the course
A resource is anything that:
can be used in production.
Slide 57
Things that it may be helpful to rememberwhen you get to the end of the course
Manny is attending college and majoring in economics. Manny is improving his scarce
resource of:
human capital.
Slide 58
Things that it may be helpful to rememberwhen you get to the end of the course
Which is not an example of a resource?
Production
(Land, Labor, human capital, and capital ARE resources)
Slide 59
Things that it may be helpful to rememberwhen you get to the end of the course
Margo spends $10,000 on one year's college tuition. The opportunity cost of spending
one year in college for Margo is:
whatever she would have purchased with the $10,000 and whatever she would have
earned had she not been in college.
Slide 60
Things that it may be helpful to rememberwhen you get to the end of the course
The best measure of the opportunity cost of any choice is:
whatever you have given up to make that choice, even if no monetary costs are
involved.
Slide 61
Things that it may be helpful to rememberwhen you get to the end of the course
For which of the following decisions would marginal analysis be most relevant?
Should I eat another donut?
Slide 62
Things that it may be helpful to rememberwhen you get to the end of the course
If an economy has used up all opportunities to make someone better off (without
making someone else worse off) then it has achieved ________.
efficiency .
Slide 63
Things that it may be helpful to rememberwhen you get to the end of the course
Who wrote The Wealth of Nations, a book that many credit with establishing
economics as a discipline?
Adam Smith
Slide 64
Things that it may be helpful to rememberwhen you get to the end of the course
Gains from trade arise because of:
specialization in production.
Slide 65
Things that it may be helpful to rememberwhen you get to the end of the course
If equilibrium exists:
there will be no remaining opportunities for individuals to make themselves better off.
Slide 66
Things that it may be helpful to rememberwhen you get to the end of the course
Economists say an economy is efficient when:
all opportunities to make some people better off without making other people
worse off have been taken.
Slide 67
Things that it may be helpful to rememberwhen you get to the end of the course
When markets fail:
government intervention may help.
Slide 68
Things that it may be helpful to rememberwhen you get to the end of the course
When markets don't achieve efficiency, then:
government may intervene to improve society's welfare.
Slide 69
Things that it may be helpful to rememberwhen you get to the end of the course
When a market is in equilibrium,
people have exploited all opportunities to make themselves better off
Slide 70
Slide 71
What to do this week!
• Read my announcements• Read chapter 1 (and the Intro) • Read over the Syllabus• Introduce yourself• Post to the discussion (before Saturday night)• Pick your Research topic & submit to dropbox• Do your Business Etiquette assignment
• Come to me when you have a question.
Slide 72
you can contact me through my email: [email protected], through AOL Instant Messaging my AOL IM name is SamDiGiammarinoJ, (put me on your buddy list) my AOL IM “Office hours” are: Wednesdays 6:30-8:30 pm Eastern Time or through the Instructor’s “Virtual Office” link under the Course Home page
Slide 73
T H A N K Y O U
F O R
A T T E N D I N G
SEE YOU IN THE DISCUSSION THREAD QUESTIONS
AND IN NEXT WEEK’S SEMINAR
Slide 74