welcome to eco 284 principles of microeconomics
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Welcome to ECO 284 Principles of Microeconomics. Please pick up a copy of the syllabus. How to Contact Me. Mr. John D. Eastwood Office CBA Room 247 Phone: 523-7353 Fax: 523-7331 E-mail: [email protected] - PowerPoint PPT PresentationTRANSCRIPT
Welcome to ECO 284Principles of Microeconomics
Please pick up a copy of the syllabus
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How to Contact Me
Mr. John D. Eastwood Office CBA Room 247 Phone: 523-7353 Fax: 523-7331 E-mail: [email protected] Office Hours:
Monday, Wednesday and Friday, 10:15 AM – 11:15 AM;Tuesday and Thursday, 1:15 –2:15 PM;also by appointment
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Prerequisite Eligible to take MAT 110 or a higher course If you lack the prerequisite, contact me as
soon as possible! You are requested to drop the class if you
lack the prerequisite or an approved waiver.
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Course Objectives Topics:
Overview of a market economy; supply and demand; graphical techniques; consumer behavior; production and costs; prices in both product and resource markets; and international economics.
Successful students will learn to analyze economic issues in an objective manner.
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The Required Text Package
William A. McEachern, Microeconomics: A Contemporary Introduction, Sixth Edition, Thompson -- Southwestern, 2003.
New copies of this text are packaged with
a CD-ROM containing a software package, “McEachern Xtra!” and
a four-month subscription to the Wall Street Journal. To subscribe, fill in the card and submit it directly to the Wall Street Journal.
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Announcements & Calendar
Start at the college web site
http://www.cba.nau.edu/
Follow the links to my name, and then my web page
http://www.cba.nau.edu/facstaff/eastwood-j/
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Graded Work:
Exams are 60% of your grade Term paper is 16%, Problem sets are 12%, Quizzes and in-class work are 12% of your
grade Your grade is computed as a weighted
average of your scores – see example
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Grading Scale
90% or better earns an “A” 80% to 89% earns a “B” 70% to 79% earns a “C” 60% to 69% earns a “D” 59% or less earns an “F” If the average on an exam falls below a C, I
may curve that exam.
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Academic Dishonesty
1. Plagiarism: any attempt to pass off other’s work as your own
2. Cheating: any attempt to gain an unfair, hidden advantage over one’s fellow students
3. Fabrication: any attempt to present information that is not true
4. Fraud: any attempt to deceive an instructor or administrative officer of the university
5. Any attempt to facilitate academic dishonesty
Excerpt from the NAU Student Handbook, Appendix G
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Questions?
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Why Study Economics?
The purpose of studying economics is not to acquire a set of ready-made answers to economic questions, but to learn how to avoid being deceived by economists.
– Joan Robinson, 1903-1983
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Why Not?
Within business colleges, Economics is sometimes referred to as the “Mother Discipline.”
Accounting, Finance, Marketing, and Management are disciplines that apply economic principles.
Many political issues concern Economics.
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B.S.B.A. in Economics Degree requirements
Economics courses 24 hours Other major requirements 18 hours Business Core 42 hours Liberal Studies 35 hours General Electives 1 hours Total 120 hours
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B.S. in Economics Degree requirements
Major 42 hours Minor 18-24 hours Liberal Studies 35 hours General Electives 25-19 hours Total 120 hours
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Minor in Economics Requires 18 credit hours
ECO 284, and ECO 285 + Four upper-division economics courses
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Certificate Business Economics
Requires 15 credit hours ECO 284, and ECO 285 + Three upper-division economics courses
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Other Business Majors Accounting Computer Information Systems Finance Management Marketing B.A. in Liberal Studies
Enterprise in Society Emphasis
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The Basics of Economics What is Economics? A large subject — How do we approach it? Heilbroner’s analogy: think of the economy as
an unexplored continent.
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Enter the continent on foot...
and study at close range the persons and firms whose activities (when combined) form the economy.
Microeconomics is the study of how consumers, firms, and resource owners interact in individual markets.
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Fly over the continent...
and note the characteristics of the economy as a whole.
Macroeconomics is the study of the entire economy.
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A third approach...
It focuses first on how the "economic continent" came to be there in the first place, and on what forces have shaped and continue to shape its landscape.
This approach is known as economic history.
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Primarily Microeconomics
Economic history adds perspective on contemporary problems such as ... De-regulation, Environmental degradation, International trade, Monopoly power, and Welfare reform.
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History of Economic Thought
The study of how economic ideas and philosophies have evolved
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What is Economics? Woody Allen:“ Economics is about money and why it is
good," Heilbroner: “Economics is the process of providing for the
material well-being of society.” (too narrow) “It’s what economists do.” (too broad) However, because many goods are scarce, society must
make choices. Thus Economics is often defined as the study of how
scarce resources are best allocated among competing ends. Economics is the science of choice — it explores the
choices that we make as we cope with scarcity.
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Resources
Inputs (factors of production) used to produce goods and services
Thus, goods and services are scarce because resources are scarce
Four general categories (CELL) Capital Entrepreneurship Labor Land
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Labor
Broad category of human effort – physical and mental
Effort requires time Labor is scarce because time is limited
. . . and cannot be stored.
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Capital
Human creations used in production Physical capital: structures, tools, equipment,
infrastructure Human capital: knowledge and skills
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Land & Entrepreneurial Ability
Land All natural resources “Gifts of nature”
Fields, forests, lakes & rivers Mineral deposits, oil & natural gas fields, etc.
Entrepreneurial Ability Managerial & organization skills Risk taking Imagination
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Payments for Resources
Wages labor Interest capital Rent land Profit entrepreneur
Entrepreneur claims what is left over Profit = Revenue minus cost
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Goods and Services
Resources can be combined to produce … Goods --tangible Services --intangible
Scarce Resources scarce goods & services Scarce the quantity desired exceeds the amount
available at a zero price Scarcity Choice Free goods are those available at a zero price