Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Colin F. Bullock
Microeconomics vs Macroeconomics?
Micro study of individual units, eg. households and firms Micro How much of a commodity is produced, how is it prices, how are the costs and benefits of production distributed Macro study of the economy as a whole Macro- aggregate output, general price level, aggregate resource utilization including empolyment/unemployment. Macro some aggregation from micro but relative prices given and recognize market imperfection
Logical hypothesis: If (assumption)..then (logic)...out turn. Natural sciences form and test hypotheses under controlled laboratory conditions. Social sciences form hypotheses by abstraction and test them by use of statistics. Abstraction: A simplified representation of an problem in a form that is more easily understood but without loss of essential information. It involves ignoring non-vital details in order to focus on the most important aspects of a problem. E.g. A road map of the route from Kingston to Montego Bay. The use of ceteris paribus (other things constant) in economics
Take Away
Economics about Scarcity and Choice Rationality; maximization from scarce resources=> Efficiency and Benefit-Cost Specialization; all benefit if each does what they do best relative to others Increasing opportunity cost; use resources with lowest opportunity cost first. Market in equilibrium leaves no unexploited opportunities Micro vs. macroeconomics; segment vs. whole The use of abstraction; other things constant
References
Baumol & Blinder Chs 1 & 3 Frank & Bernanke Ch 1 & 2 Case, Fair & Oster Chs 1 & 2
Course Outline
1. 2. 3. 4. Basic Economic Tools and Concepts (including Coordinate Geometry (Graphs) and Demand and Supply) Macroeconomics vs Microeconomics and the Central Macroeconomic Questions Economic Growth and the Measurement of Output (National Income Accounting) Nominal vs Real GDP and the Measurement of Price Changes (Inflation) Planned Aggregate Expenditure = Output and the Multiplier Inflationary Expectations, Short Run and Long Run Aggregate Supply Income Equilibrium, Full Employment, Inflationary and Deflationary Gaps The Role of Public Policy: Fiscal Multipliers and Policy and Money Multipliers and Policy. International Economics: International Trade and Balance of Payments.
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Books
Baumol, William and Blinder, Alan: Economics Principles and Policies (Thomson South Western) Case, Karl E., Fair, Ray C., and Oster, Sharon M: Principles of Economics Frank Robert H., and Bernanke, Ben S. : Principles of Economics (Mc Graw-Hill Irwin)