Lecture Notes for Jan 23, 2009
Economics 1102 with Pieters at University of Minnesota - Twin Cities
About this deck
By: Ashton McGinnis
Textbook:
Macroeconomics (McGraw-Hill Economics)
Principles of Macroeconomics
Created: 2009-01-25
Size: 16 flashcards
Views: 6
Textbook:
Macroeconomics (McGraw-Hill Economics) Principles of MacroeconomicsCreated: 2009-01-25
Size: 16 flashcards
Views: 6
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Answers 5 questions:
(5 answers)
(5 answers)
- 1. What goods and services will be produced?
- 2. how will goods and servoces be produced?
- 3. who will get the goods and services?
- 4. how will the system accomodate change? Ex: preferences, technology, resources
- 4. how will the system accomodate progress?
Two large simplifications:
(2 answers)
(2 answers)
- 1. We study the "average person" in the economy
- 2. other-things-unchanged; look at the event as a single event. Dont include outside assumptions
Market system- (capitolism) Resources are privately owned, goods are privately produced accordign to the profit motive. The allocation and quantity of goods produced is determined through prices-(the system through which buyers and sellers communicate) and Markets- (the place where buyers and sellers come together to exchange goods.
(1 answer)
(1 answer)
- Characteristics:
Lecture 2- 1/23/09
(3 answers)
(3 answers)
- economics- studies how humans interact under conditions of scarcity- a social science that examines our consumers, institutions and society and the decisions they make, or should make, under conditions of scarcity.
- microeconomics- the study of economic behaviors of individual consumers, households, firms, and institutions.
- macroeconomics- the study of the economic behaviors in the economy, "the study of aggregates"
Examples of Macro questions:
(2 answers)
(2 answers)
- Why do developed countries have lower fertility that developing countries?
- What economic policies should the government follow to get a country out of a recession?
economics- studies how humans interact under conditions of scarcity- a social science that examines our consumers, institutions and society and the decisions they make, or should make, under conditions of scarcity. scarcity- the economic observation that humans have unlimited wants, but limited resources.microeconomics- the study of economic behaviors of individual consumers, households, firms, and institutions. macroeconomics- the study of the economic behaviors in the economy, "the study of aggregates" aggregates- the collection of individual entities, treated as if they were 1 unit.
(2 answers)
(2 answers)
- Examples of micro questions:
- Examples of Macro questions:
Characteristics:
(6 answers)
(6 answers)
- 1. extensive private property rights
- 2. freedom of enterprise and choice
- 3. self interest as the primary motivating force
- 4. competition
- 5. existance of proces and markets
- 6. active but limited government
command system- (communism, socialism) IN this systenm the governement owns most of the resources. The central planning board (CPB) makes a decision about the uses of the resources. Government also owns all the firms, which produce according to government directives. The CPB also decides the division between consumption and capitol goods.
(1 answer)
(1 answer)
- Negatives:
macroeconomics- the study of the economic behaviors in the economy, "the study of aggregates"
(1 answer)
(1 answer)
- aggregates- the collection of individual entities, treated as if they were 1 unit.
Examples of micro questions:
(2 answers)
(2 answers)
- If the price of cream cheese changes, how does my demand change?
- If my wages rise, will i work more or less hours
Tools of economics:
(6 answers)
(6 answers)
- Scientific Method
- 1. Observe some aspect of the universe (data)
- 2. create a hypothesis that is constant with the data
- 3. use the hypothesis to make predictions about other data you dont have yet
- 4. Test hypothesis by compairing data in 1 and 3
- 5. if it fails, you create a new hypothesis- if it succeeds, it becomes a theory
Tools of economics: Scientific Method1. Observe some aspect of the universe (data)2. create a hypothesis that is constant with the data3. use the hypothesis to make predictions about other data you dont have yet4. Test hypothesis by compairing data in 1 and 35. if it fails, you create a new hypothesis- if it succeeds, it becomes a theory
(3 answers)
(3 answers)
- Marginal analysis- the compairisons of the costs and benefits of the marginal unit
- Two large simplifications:
- Types of economies:
economics- studies how humans interact under conditions of scarcity- a social science that examines our consumers, institutions and society and the decisions they make, or should make, under conditions of scarcity.
(1 answer)
(1 answer)
- scarcity- the economic observation that humans have unlimited wants, but limited resources.
Negatives:
(2 answers)
(2 answers)
- Incentive problem . Output:CPB determines mix of goods. Innovation- happens slowly, stagnation
- Coordination problem. Output:CPB determines the correct mix for millions of people
Types of economies:
(4 answers)
(4 answers)
- Economic system- a set of institutional arrangements to determine how to distribute scarce resources to satisfy peoples wants
- Answers 5 questions:
- command system- (communism, socialism) IN this systenm the governement owns most of the resources. The central planning board (CPB) makes a decision about the uses of the resources. Government also owns all the firms, which produce according to government directives. The CPB also decides the division between consumption and capitol goods.
- Market system- (capitolism) Resources are privately owned, goods are privately produced accordign to the profit motive. The allocation and quantity of goods produced is determined through prices-(the system through which buyers and sellers communicate) and Markets- (the place where buyers and sellers come together to exchange goods.
Examples of micro questions: If the price of cream cheese changes, how does my demand change?If my wages rise, will i work more or less hoursExamples of Macro questions: Why do developed countries have lower fertility that developing countries?What economic policies should the government follow to get a country out of a recession?
(1 answer)
(1 answer)
- Tools of economics:
About this deck
By: Ashton McGinnis
Textbook: Macroeconomics (McGraw-Hill Economics)
Principles of Macroeconomics
Created: 2009-01-25
Size: 16 flashcards
Views: 6
Textbook:
Macroeconomics (McGraw-Hill Economics) Principles of MacroeconomicsCreated: 2009-01-25
Size: 16 flashcards
Views: 6
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“Simply amazing. The flash cards are smooth, there are many different types of studying tools, and there is a great search engine. I praise you on the awesomeness.”
Dennis
Dennis