1 / 7

Intro

Intro. Microeconomics. Definition/Origin. Economics: The study of how society manages its scarce resources. From Greek ‘ oikonomos ’ meaning household management Current form stems from ‘political economy’ to which more mathematical rigor was added.

renate
Télécharger la présentation

Intro

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Intro Microeconomics

  2. Definition/Origin • Economics: The study of how society manages its scarce resources. • From Greek ‘oikonomos’ meaning household management • Current form stems from ‘political economy’ to which more mathematical rigor was added.

  3. Micro vs Macro: study of agents, ind. Mktsvs unemployment, inflation, growth etc. • Normative vs *Positive*: what ought to be vs what is • Use of Models/Assumptions/*Ceteris Paribus* • All else being the same

  4. Scarcity: unlimited wants/limited resources • Trade Offs: more of one thing means less of another • *Opportunity Cost*: what you give up (your best next thing), not just dollar amount • example

  5. Think Like an Economist • Ignore Sunk cost (let bygones be bygones): example • Think at the Margin : Hiring Example • Diminishing/Increasing Margins : Example

  6. Constant Marginal Cost Increasing Marginal Cost

  7. Decreasing Marginal Happiness

More Related