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Dauphin Island Sediment Study

study of sediment off 800 meters off coast od Dauphin Island.

JamieBozeman
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Dauphin Island Sediment Study

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  1. Chapter 1 The Nature of Economics

  2. Definition of economics • the study of how individuals and societies use limited resources to satisfy unlimited wants.

  3. Microeconomics vs. macroeconomics • Macroeconomics is the study of economy-wide phenomena, including inflation, unemployment, economic growth, and monetary and fiscal policy. That is, this is the branch of economics that deals with decision making for the entire economy • Microeconomics is the study of how households and firms make decisions and how they interact in markets. Thus, this branch of economics deals with choices made by individual or small units of the economy.

  4. Fundamental Economic Questions • What to produce • How to produce • For whom to produce

  5. Types of Economic Systems • Economic systems provide answers to the fundamental economic questions. These systems include • Command or centralized control system • Market or price system • Mixed economic systems

  6. Command or centralized control • An economic system characterized by government ownership of some resources, centralized decision making and large-scale redistribution of income from the wealthy and middle class to working class and poor.

  7. Market or Price Systems • Private Ownership • Resources are primarily privately owned and controlled by individuals and firms, rather than having property being held by government on behalf of society. • Decentralized Decision Making • Buyers and sellers exchange goods in markets without government involvement. Prices serve as the mechanism to allocate resources and distribute goods and services.

  8. Mixed Economic Systems • Economic systems that answer the What, How, and For Whom questions through a mixture of command and market systems. • In nearly all mixed economies, the government play a relatively minor role in production, but may play a relatively strong role in distribution of goods and services.

  9. Economic Decision Making • All decisions are rational—maximum benefits are the goal of all decisions • Individuals respond to incentives, positive or negative • Individuals pursue self-interest, not necessarily monetary.

  10. Economic Methodology • Use Assumption • Isolate Variables – Ceteris paribus • Simplified Models of Behavior AND NOT Models of thought processes.

  11. Positive and Normative analysis • positive economics • attempt to describe how the economy functions normative economics • relies on value judgements to evaluate or recommend alternative policies.

  12. Algebra and graphical analysis • direct relationship

  13. Direct relationship

  14. Inverse relationship

  15. Linear relationships • A linear relationship possesses a constant slope, defined as:

  16. Linear relationships (continued) • If an equation can be written in the form: Y=mX+b, then: m = slope, and b = Y - intercept.

  17. Moving Along vs. Shifting a Curve • A change in one of the variable shown on the graph causes movement along curve. • A change in one of he variables that is not shown on the graph-one of the variables held fixed in drawing the curve—shifts the entire curve.

  18. Shifting vs. Movement Along cont’d Y Y B A B A X X

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