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AqP MICROECONOMICS UNIT I
FUNDAMENTALS |
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OUTLINE |
UNIT OBJECTIVES |
READINGS FROM McCONNELL/BRUE |
GRAPHS |
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1.
DEFINITION - Chapter 1 pg.3
2.
FUNDAMENTAL PRINCIPLES - Chapter
1 pp. 4 - 5
a.
SCARCITY
i.
LIMITED
and DESIRABLE
b.
CHOICE
i.
TINSTAAFL
ii.
OPPORTUNITY COST
c.
PROFIT
i.
COST-BENEFIT ANALYSIS
ii.
SUBJECTIVE/UTILITY
d.
RATIONAL
i.
INVESTMENTS
ii.
IMPERFECT INFORMATION
e.
MARGINAL ANALYSIS
i.
INCENTIVES MATTER
f.
TRADE CREATES WEALTH
i.
SPECIALIZATION
3.
THEORY - Chapter 1, pp. 5-10
a.
POSITIVE/NORMATIVE
b.
PITFALLS
i.
BIAS
ii.
POST HOC
iii.
COMPOSITION
4.
PPF
Chapter 1, pp. 11-21
a.
MAXIMUM EFFICIENCY
i.
FULL PRODUCTION
ii.
FULL EMPLOYMENT
b.
GROWTH
i.
TECHNOLOGY
ii.
RESOURCES
iii.
TRADE
5.
MODELS - Chapter 1 appendix, pp.
22 - 28
a.
X AND Y AXIS
b.
DIRECT AND INVERSE RELATIONSHIPS
c.
SLOPE |
1.
Describe
and analyze the "economic way of
thinking"
2.
Describe
the methodology used in
economics
3.
Graph
data and distinguish between
inverse and direct relationships
4.
Graph
and distinguish between constant
and variable relationships
5.
Identify
the fundamental economic problem
of scarcity
6.
Define
and Identify Opportunity Cost
7.
Construct a Production
Possibilities curve from sets of
data
8.
Apply
Opportunity Cost to a Production
Possibilities Curve
9.
Analyze
different locations on, above or
below a Production Possibilities
Curve
10.
Identify
the four economic questions
11.
Compare
the economic theories of
Adam Smith and Karl Marx
12.
Describe
and analyze the economic goals
of different economic systems
13.
Analyze
the advantages and disadvantages
of different economic systems |
SUPPLEMENTAL SOURCES
Economic Reasoning:
Three-Ten Combination Once to
the Side
A Nibble from the Free Lunch
- Frank Armstrong
MEDIA
M*A*S*H
EXERCISE
ECONOLAND |
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