The music was composed by James Horner Do you recognize it? Microeconomics Welcome to AB 224

The music was composed by James Horner

Do you recognize it?

Microeconomics Welcome to AB 224

Guten Tag meine Damen und Herren. Willkommen bei Mikroökonomie.

Es tut mir leid. Sie verstehen kein Deutsch

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Chào thưa các quý ông. Đến kinh tế vi mô.

Tôi xin lỗi. Bạn không hiểu tiếng việt.

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Good day, or greetings, ladies and gentlemen. Welcome to Microeconomics.

I’m sorry. You do not speak German

or Vietnamese.





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Good day, or greetings, ladies and gentlemen. Welcome to Microeconomics.

I’m sorry. You do not speak German

or Vietnamese.

It is much easier to communicate when you know the language





Marginal Opportunity Costs, Production Possibility Frontier, Diminishing

returns to capital, time and place utility, marginal price elasticity,

perfect substitute, invisible hand, consumer surplus, supplier surplus

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The key to learning economics is learning its language

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Welcome to AB224 -Micro Economics – Unit 1

Your Instructor:Enrico L. “Sam” DiGiammarino, Jr.

Please call me Sam

My wife, Brenda and me with our “off road vehicle”

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Miss Abbey,

1 of my 3 “little girls”

Everyone needs a toy in which to drive to the airport.

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SyllabusYour Reading Material

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Microeconomics Second EditionAuthors: Paul Krugman and Robin Wells

In paragraph citation: (Krugman, P., & Wells, R., 2009, pp. x-y)

Reference:

Krugman, P., & Wells, R. (2009). Macroeconomics, Second Edition.

New York: Worth Publishers.

Your

eBook

In

Doc Sharing

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Course Outline

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AB224 - Microeconomics• Unit 1 = First Principles• Unit 2 = Economic Models: Tradeoffs and Trade• Unit 3 = Supply and Demand & Consumer and Producer Surplus• Unit 4 = The Market Strikes Back & Elasticity• Unit 5 = The Rational Consumer • Unit 6 = Behind the Supply Curve: Inputs and Costs• Unit 7 = Perfect Competition and the Supply Curve & Monopoly • Unit 8 = Oligopoly & Monopolistic Competition and Product Differentiation• Unit 9 = Externalities• Unit 10 = Reflection Slide 21Slide 15


Course Outline

School of Business Policies

GRADING RUBRIC – Discussion Board

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The Discussion Board Requirement:

Students are to post a minimum of three posts per discussion thread. One initial response and two replies to their classmates

Posting on a minimum of three different days, for example: Wednesday, Friday and MondayThe first post must be made by Saturday.

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Quality (40%) of your post will be measured on the following criteria:All assigned discussion questions were answered completelyPosts were on topic and unique in contentAll posts demonstrated analysis of the topic

Participation Guidelines (30%) will be measured on the following criteria:Initial post no later than Saturday, midnight ESTPosts made to each discussion question on at least 3 different daysThe original post to be no less than 100 words

Clarity and Organization of Writing (20%) of your post will be measured on the following criteria:Posts were organized and logical No spelling or grammatical errorsReferences were used and cited properly

Professional & Netiquette (10%) in your post will be measured on the following criteria:Respect and consideration toward peers/instructorsAppropriate language Professional use of abbreviations and acronyms Slide 18


Course Outline



Online Communications Guidelines

Different Kinds of Assignments

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Points Activity

245 (35 each) - Weekly Discussion Threads (Units 1 - 9)

240 (30 each) - Weekly Assignments (Units 1 - 9)

------------------1,000 Total Points

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Points Activity



10 - Research Paper Topic selection (due Unit 1)

50 - Research Paper Outline (due Unit 4)

50 - Research Paper Draft (due Unit 6)

------------------1,000 Total Points

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Points Activity





50 - Research Paper Draft (due Unit 6) 200 - Research Paper (due Unit 8)

------------------1,000 Total Points

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Points Activity






180 - F I N A L E X A M (60 questions due Unit 10)

------------------1,000 Total Points

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Points Activity






180 - F I N A L E X A M (60 questions due Unit 10)

45 - Unit 10 Writing Assignment------------------1,000 Total Points

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Without Extenuating Circumstances: Up to one week (1-7 calendar days) late 20% deduction in points

After one week (8-14 calendar days) late 30% deduction in points

No work will be accepted more than two (2) weeks after the due date.

LATE POLICY

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Course Outline





Paper Submissions

University Policies

Plagiarism

Tutoring

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Course Outline





Paper Submissions

University Policies

PlagiarismTutoring

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Course Outline





Paper Submissions

University Policies

PlagiarismTutoring

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Course Outline





Paper Submissions

University Policies

Plagiarism

Tutoring Slide 29

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Scarcity

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Opportunity Costs

?

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Trade-offseither, or

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MARGINAL COST ANALYSIS

How much for a little bit more? Is it worth the cost?

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What is the last thing that you bought?

Why did you buy that particular brand?

Why did you buy it from that particular store?

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Does it matter to you that the owner of the other store desperately needed that sale to make “ends meet” ?

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We each do what we feel is in our BEST INTEREST!

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So does everyone else (consumers AND businesses)!

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So does everyone else (consumers AND businesses)!

Adam Smith’s “invisible hand” at work

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People usually exploit opportunities to make themselves better off.

Incentives ?

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Thought experiment # 1:Tomorrow, some catastrophe strikes and civilization, as we know it, ends.

You, and your family are the ONLY survivors.

What must you do to continue living?

Water?Food ?Shelter?Clothing?

What technologies can you use?

What resources do you have?

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You, and your family are the ONLY survivors.





Must do

every-thing

for yourself

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You, and your family survive.





Also, many of your neighbors survive.

How do things change?

There are gains from trade

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Markets seek equilibrium

No individual would be better off

doing something different

Should lead to best efficiency ???

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Things that it may be helpful to rememberwhen you get to the end of the course

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Microeconomics deals with:

individual units in the economy.

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The study of a single firm and how it determines prices would fall under:

microeconomics.

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A key theme fundamental to all of economics is:

people have unlimited wants facing limited

means to satisfy them.

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Opportunity cost is:

the value of the best alternative forgone in making any choice.

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The economic way of thinking has to do with:

making choices at the margin.

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A choice made ________ is a choice whether to do a little more or a little less of

something.

at the margin

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A resource is anything that:

can be used in production.

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Manny is attending college and majoring in economics. Manny is improving his scarce

resource of:

human capital.

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Which is not an example of a resource?

Production

(Land, Labor, human capital, and capital ARE resources)

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Margo spends $10,000 on one year's college tuition. The opportunity cost of spending

one year in college for Margo is:

whatever she would have purchased with the $10,000 and whatever she would have

earned had she not been in college.

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The best measure of the opportunity cost of any choice is:

whatever you have given up to make that choice, even if no monetary costs are

involved.

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For which of the following decisions would marginal analysis be most relevant?

Should I eat another donut?

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If an economy has used up all opportunities to make someone better off (without

making someone else worse off) then it has achieved ________.

efficiency .

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Who wrote The Wealth of Nations, a book that many credit with establishing

economics as a discipline?

Adam Smith

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Gains from trade arise because of:

specialization in production.

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If equilibrium exists:

there will be no remaining opportunities for individuals to make themselves better off.

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Economists say an economy is efficient when:

all opportunities to make some people better off without making other people

worse off have been taken.

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When markets fail:

government intervention may help.

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When markets don't achieve efficiency, then:

government may intervene to improve society's welfare.

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When a market is in equilibrium,

people have exploited all opportunities to make themselves better off

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What to do this week!

• Read my announcements• Read chapter 1 (and the Intro) • Read over the Syllabus• Introduce yourself• Post to the discussion (before Saturday night)• Pick your Research topic & submit to dropbox• Do your Business Etiquette assignment

• Come to me when you have a question.

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you can contact me through my email: [email protected], through AOL Instant Messaging my AOL IM name is SamDiGiammarinoJ, (put me on your buddy list) my AOL IM “Office hours” are: Wednesdays 6:30-8:30 pm Eastern Time or through the Instructor’s “Virtual Office” link under the Course Home page

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mailto:[email protected]

T H A N K Y O U

F O R

A T T E N D I N G

SEE YOU IN THE DISCUSSION THREAD QUESTIONS

AND IN NEXT WEEK’S SEMINAR

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Documents

The music was composed by James Horner Do you recognize it? Microeconomics Welcome to AB 224