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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) 450 pts Final Exam (comprehensive) 300 pts Homework Assignments 150 pts Newspaper Assign. and Quizzes 100 pts
TOTAL possible 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
Principles 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 of Macro ECON 1110Spring 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?