It has a detailed notes of the principle of Microeconomics based on G.Mankiw's book on the same name. It is the first chapter of Microeconomics courses in most of the universities around the world.It has all case studies and examples.
Class notes Introduction to MacroEconomics (ECN101) Principles of Microeconomics
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Principles of Microeconomics
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Original source: BCcampus OpenEd
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,Contents
Preface ............................................................................................................................1
Additional Material for Instructors ........................................................................................3
Chapter 1 Economics: The Study of Choice .................................................................4
1.1 Start Up: Economics in the News .....................................................................................4
1.2 Defining Economics............................................................................................................5
LEARNING OBJECTIVES ....................................................................................................5
1.2.1 Scarcity, Choice, and Cost ......................................................................................5
1.2.1.1 Scarcity .........................................................................................................5
1.2.1.2 Scarcity and the Fundamental Economic Questions ..............................6
1.2.1.3 Opportunity Cost..........................................................................................7
KEY TAKEAWAYS ...............................................................................................8
TRY IT! ................................................................................................................8
Case in Point: The Rising Cost of Energy .......................................................8
ANSWERS TO TRY IT! PROBLEMS .................................................................10
1.3 The Field of Economics ....................................................................................................10
LEARNING OBJECTIVES ..................................................................................................10
1.3.1 The Economic Way of Thinking ...........................................................................11
1.3.1.1 Opportunity Costs Are Important ...........................................................11
1.3.1.2 Individuals Maximize in Pursuing Self-Interest .....................................12
1.3.1.3 Choices Are Made at the Margin .............................................................12
1.3.2 Microeconomics and Macroeconomics .............................................................13
1.3.3 Putting Economics to Work .................................................................................14
1.3.3.1 Careers in Economics ................................................................................14
1.3.3.2 Applying Economics to Other Fields ........................................................14
KEY TAKEAWAYS .............................................................................................19
TRY IT! ..............................................................................................................19
Case in Point: The Financial Payoff to Studying Economics .....................19
ANSWER TO TRY IT! PROBLEM .....................................................................20
1.4 The Economists’ Tool Kit ..................................................................................................21
LEARNING OBJECTIVES ..................................................................................................21
1.4.1 Models in Economics ............................................................................................22
1.4.2 Testing Hypotheses in Economics ......................................................................22
1.4.2.1 The All-Other-Things-Unchanged Problem ............................................23
1.4.2.2 The Fallacy of False Cause ........................................................................23
1.4.2.3 Normative and Positive Statements ........................................................24
KEY TAKEAWAYS .............................................................................................25
TRY IT! ..............................................................................................................25
Case in Point: Does Baldness Cause Heart Disease? ................................25
ANSWER TO TRY IT! PROBLEM .....................................................................26
1.5 Review and Practice .........................................................................................................26
Summary .........................................................................................................................26
PROBLEMS ......................................................................................................................27
, Chapter 2 Confronting Scarcity: Choices in Production ..........................................29
2.1 Start Up: Tightening Security at the World’s Airports .................................................29
2.2 Factors of Production.......................................................................................................30
LEARNING OBJECTIVES ..................................................................................................30
2.2.1 Labor ......................................................................................................................31
2.2.2 Capital ....................................................................................................................31
2.2.3 Natural Resources ................................................................................................32
2.2.4 Technology and the Entrepreneur ......................................................................33
KEY TAKEAWAYS .....................................................................................................33
TRY IT! ......................................................................................................................34
Case in Point: Technology Cuts Costs, Boosts Productivity and Profits ..........34
ANSWERS TO TRY IT! PROBLEMS .........................................................................35
2.3 The Production Possibilities Curve .................................................................................36
LEARNING OBJECTIVES ..................................................................................................36
2.3.1 Constructing a Production Possibilities Curve...................................................36
2.4 Comparative Advantage and the Production Possibilities Curve ...............................40
2.4.1 The Law of Increasing Opportunity Cost ............................................................42
2.4.2 Movements Along the Production Possibilities Curve ......................................44
2.4.3 Producing on Versus Producing Inside the Production Possibilities Curve ..46
2.4.3.1 Idle Factors of Production .........................................................................46
2.4.3.2 Inefficient Production ................................................................................47
2.4.3.3 Specialization ..............................................................................................50
KEY TAKEAWAYS .............................................................................................50
TRY IT! ..............................................................................................................51
Case in Point: The Cost of the Great Depression .......................................52
ANSWER TO TRY IT! PROBLEM .....................................................................52
2.5 Applications of the Production Possibilities Model ......................................................53
LEARNING OBJECTIVES ..................................................................................................53
2.5.1 Comparative Advantage and International Trade.............................................53
2.5.2 Economic Growth ..................................................................................................55
2.5.2.1 The Sources of Economic Growth ............................................................56
2.5.2.2 Waiting for Growth ....................................................................................60
2.5.3 Arenas for Choice: A Comparison of Economic Systems ................................60
2.5.3.1 Classifying Economic Systems ..................................................................61
2.5.4 Government in a Market Economy .....................................................................63
KEY TAKEAWAYS .....................................................................................................64
TRY IT! ......................................................................................................................64
Case in Point: The European Union and the Production Possibilities Curve .64
ANSWER TO TRY IT! PROBLEM .............................................................................66
2.6 Review and Practice .........................................................................................................67
Summary .........................................................................................................................67
CONCEPT PROBLEMS ....................................................................................................68
NUMERICAL PROBLEMS ................................................................................................70
Chapter 3 Demand and Supply ...................................................................................74
3.1 Start Up: Crazy for Coffee ...............................................................................................74
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