WELCOME TO ECON 1110 - College of Arts & Sciences
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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?