Transcript WELCOME TO ECON 1110 - College of Arts & Sciences

WELCOME TO ECON 1110
PRINCIPLES OF MACRO
Dr. Young Se Kim
6:30 – 9:20
SYLLABUS
 Instructor:
Young Se Kim
 Office: Etech 220 H
Ph.# 565-2220
 Office Hrs.:
1:00 – 3:00 TW and
by appointment
 email:
[email protected]
 web site: www.cas.unt.edu/~kim1
EXAM DATES
 Exam
1 - February 20th
 Exam 2 - April 3rd
 Exam 3 - May 1st
 COMPREHENSIVE FINAL EXAM SATURDAY, May 6th at 2:00pm
GRADING POLICY
3
hourly exams (150 pts. each)
 Final Exam (comprehensive)
 Homework Assignments
 Newspaper Assign. and Quizzes
 TOTAL possible
450 pts
300 pts
150 pts
100 pts
1000 pts
GRADING SCALE
A =
1000 - 900pts
 B = 899 - 800pts
 C = 799 - 700pts
 D = 699 - 600pts
 F = 599pts or below
Newspaper Assign. and Quizzes
 Short
writing assignments based on current
economic condition (30 pts)
 Detailed instructions will be distributed
8
“unannounced” quizzes (70 pts)
 Workbook and a number 2 pencil with you
 No make-up quizzes
TEXTBOOK AND
MATERIALS
 Roger A. Arnold
Macroeconomics UNT
7th edition
 Principles of Macroeconomics Workbook
2006 edition
 A Non-Programmable Calculator
 Number 2 Pencils
HOMEWORK
Homework assignments will be made on a weekly
basis.
 Assignments will come from the workbook and
should be turned in on scantrons
 I will supply the scantrons
 Your name should appear on all scantrons
Last name, First name
 An assignment sheet with all homework for the
semester is on the web

TUTORING CENTER
Tutoring Lab – Etech 266
 The lab is open from 8:30 – 6:30 Mon. &
Wed., 8:30 – 5:00 Tues&Thurs., and 8:30 –
1:00 on Friday
 Practice exams are available at
www.econ.unt.edu
 Principles
Principles of Macro
ECON 1110
Spring 2006
Chapter 1
What Economics Is About
IMPORTANCE OF
ECONOMICS
 Good
Citizenship in a Democratic Society
 Improved personal decision making
 Aids business decision making
MICRO vs. MACRO
 MICROECONOMICS
- the branch of
economics that deals with the behavior and
choices of an individual, firm, single
industry, or market.
 MACROECONOMICS - the branch of
economics that deals with the aggregate
behavior of the entire economy.
MICRO vs. MACRO (Example)
 Macroeconomics
does not try to answer the
question of
a) why do some countries experience rapid growth
b) what is the rate of return on education
c) why do some countries have high rates of
inflation
d) what causes recessions
MICRO vs. MACRO (cont.)
 Determinants
of inflation
 Relative market shares of GM and Ford
 Amount of imports and exports between
U.S. and Japan
 Growth of total production in U.S.
 Level of output a firm produces
Important Macro Concepts
 Economic
Growth
 Unemployment
 Inflation
 Economic fluctuations
 Productivity
 Government Spending and Taxation
 Monetary Policy
SCARCITY AND CHOICE
 Unlimited Wants
and Limited Resources
Leads to SCARCITY
 Scarcity Necessitates Choices
 ECONOMICS is the study of CHOICES
Definition of Economics
the study of how individuals and society
CHOOSE
 to employ SCARCE RESOURCES to
produce goods and services
 and to DISTRIBUTE them among the
members of society
4 CATEGORIES OF
RESOURCES
 LAND
- natural resources
 LABOR - physical and mental talents
people contribute to the production process
 CAPITAL - improvements to land such as
buildings, machinery and tools
 ENTREPRENEURSHIP - the talents that
some people for organizing land, labor, and
capital into new business opportunities.
THINKING LIKE AN
ECONOMIST
 Scarcity
and its effect
- Need for a rationing device: dollar price
- Competition
 Opportunity cost:
What one has to give up in foregone alternative when any
action is taking
Ex) What is the opportunity cost to you of attending college?
What was your opportunity cost of coming to class today?
Opportunity Cost (Example)
 Compact
Disc (CD): $10 each
 Cassette Tape (CT): $5 each
- Opportunity cost of one CD?
- Opportunity cost of five CDs?
- Opportunity cost of one CT?
- Opportunity cost of four CTs?
THINKING LIKE AN
ECONOMIST

Costs and benefits of decisions
Decisions require comparing costs and benefits of alternatives.
- Whether to go to college or to work?
- Whether to study or go out on a date?
- Whether to go to class or sleep in?

Decisions at the margin
- Marginal changes are small, incremental adjustments to an
existing plan of action
- Marginal Benefit (MB) vs. Marginal Cost (MC)
SCIENTIFIC THINKING
 The Association-Causation
Issue
(Fallacy of False Cause)
- Association: if two events are linked
or connected in some way
ex) wash your car at 10:00  starts to rain at
10:30
SCIENTIFIC THINKING
 Fallacy
of Composition:
The erroneous view that what is good or true for the
individual is necessarily good or true for the group
ex) tariffs
 Ceteris
Paribus Assumption:
All other things held constant or nothing else changes
ECONOMIC CATEGORIES
According to the type of questions
economists ask
 POSITIVE
ECONOMICS - the study of
“what is” in economic matters.
 NORMATIVE
ECONOMICS - the study of
“what should be” in economic matters.
IDENTIFY THE FOLLOWING
STATEMENTS AS POSITIVE OR
NORMATIVE
 The
Stadium should be packed for
Saturday’s UNT-UT Game.
 The unemployment rate in Dallas is 5.3%.
 A country as big as the United States should
have a job for anyone that is willing to
work.
IDENTIFY THE FOLLOWING
STATEMENTS AS POSITIVE OR
NORMATIVE (cont.)
 The
federal budget deficit has decreased
every year for the last 20 years.
 The unemployment rate is too high.
 The costs of medical care are increasing
faster than the income of American citizens.
 Lower income tax will generate greater
income tax revenue for the government.
Assignment
 Get
your Text and Workbook
 Read Chapters 1 - 3
 Assignment 1: pp. 11-12 & 17-18
ANY QUESTIONS?