Part 1 of detailed summary of EC1002 - Introduction to Economics, based on the textbook 'Economics' by Begg, Fischer, Vernasca and Dornbusch (11th edition). Beginner level, for introductory economics course. Part 1 includes following topics:
- Unit 1: Economics and the economy
- Unit 2: Tools of ...
EC1002 Introduction to Economics - Part 3: Welfare Economics
EC1002 Introduction to Economics - Part 4: Macroeconomics
EC1002 Introduction to Economics - Part 2: Positive Microeconomics
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EC1002 - Introduction to Economics (EC1002)
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INTRODUCTION TO
ECONOMICS
- Part 1: Introduction -
Good luck studying!
short manual:
- includes a graph
- includes a schema/diagram
- includes an introduction
- includes additional information that
is not in the main textbook updated: 5/11/2017
, CONTENTS
CHAPTER 1: ECONOMICS AND THE ECONOMY
1.0. Introduction to Economics ………………………………………………………….. 1
1.1. How economists think about choices ………………………………………….. 3
1.2. Economic issues
1.2.1. Financial crisis of 2007 …………………………………………………….. 5
1.2.2. Income distribution …………………………………………………………. 6
1.2.3. The concept of behavioural economics ……………………………. 7
1.3. Scarcity and the competing use of resources ………………………………. 8
1.4. The role of the market ………………………………………………………………… 10
1.5. Positive and normative ……………………………………………………………….. 11
1.6. Micro and macro …………………………………………………………………………. 12
CHAPTER 2: TOOLS OF ECONOMIC ANALYSIS
2.0. Tools of economic analysis ………………………………………………………….. 13
2.1. Economic data …………………………………………………………………………….. 14
2.2. Index numbers …………………………………………………………………………….. 15
2.3. Nominal and real variables ………………………………………………………….. 17
2.4. Measuring changes in economic variables …………………………………… 18
2.5. Economic models ………………………………………………………………………… 18
2.6. Models and data …………………………………………………………………………. 19
2.7. Theories and evidence ………………………………………………………………… 20
2.8. Some popular criticisms on economics and economists ………………. 20
CHAPTER 3: DEMAND, SUPPLY AND THE MARKET
3.1. The market ………………………………………………………………………………….. 21
3.2. Demand and supply …………………………………………………………………….. 22
3.3. Market equilibrium ……………………………………………………………………… 23
3.4. Behind the demand curve ……………………………………………………………. 24
3.5. Behind the supply curve ……………………………………………………………… 25
3.6. Consumer and producer surplus …………………………………………………. 26
3.7. Free markets and price controls ………………………………………………….. 27
3.8. Markets determine production …………………………………………………… 28
, 1.0. Introduction to Economics
WHAT IS ECONOMICS?
study of how societies make choices under conditions of scarcity
MAIN CHARACTERISTICS OF ECONOMICS
1. IT IS A SOCIAL SCIENCE
o „science“ reflects the method of analysis, not subject matter
2. IT STUDIES HUMAN BEHAVIOUR
3. IT RETAINS THE ELEMENT OF ART
o it doesn’t ignore people as individuals
WHAT IS SCARCITY?
it means that we have limited resources to produce all the goods and services
RESOURCE IS SCARCE when demand at price zero > supply
GOODS SERVICES
physical commodities non-physical commodities
consumed after production consumed with production
examples: examples:
o apples o haircut
o computers o database maintenance
KEY ECONOMIC PROBLEM
virtually limitless desires scarcity of resources
for goods and services (labour, machinery, raw
HOW TO
materials...)
RESOLVE? :/
-1-
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