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    Lecture 1: An Introduction To Economics: What Will Be Considered in This Unit?

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    jtzamora05
    This document provides an overview and introduction to the economics unit. It discusses what economics is as a social science, the different types of economists and their roles. It outlines the purpose of the unit to introduce basic economic frameworks and ways of thinking. It describes some key economic principles such as opportunity costs, incentives, and trade-offs. It also discusses how economists use models, data and analysis to study individual, business and government decision-making.

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    Lecture 1: An Introduction To Economics: What Will Be Considered in This Unit?

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    jtzamora05
    22 views39 pages
    This document provides an overview and introduction to the economics unit. It discusses what economics is as a social science, the different types of economists and their roles. It outlines the purpose of the unit to introduce basic economic frameworks and ways of thinking. It describes some key economic principles such as opportunity costs, incentives, and trade-offs. It also discusses how economists use models, data and analysis to study individual, business and government decision-making.

    Original Title

    Lecture Week 1 Introduction

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    This document provides an overview and introduction to the economics unit. It discusses what economics is as a social science, the different types of economists and their roles. It outlines the purpose of the unit to introduce basic economic frameworks and ways of thinking. It describes some key economic principles such as opportunity costs, incentives, and trade-offs. It also discusses how economists use models, data and analysis to study individual, business and government decision-making.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    22 views39 pages

    Lecture 1: An Introduction To Economics: What Will Be Considered in This Unit?

    Uploaded by

    jtzamora05
    This document provides an overview and introduction to the economics unit. It discusses what economics is as a social science, the different types of economists and their roles. It outlines the purpose of the unit to introduce basic economic frameworks and ways of thinking. It describes some key economic principles such as opportunity costs, incentives, and trade-offs. It also discusses how economists use models, data and analysis to study individual, business and government decision-making.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 39

    Lecture 1: An Introduction to

    Economics
    What will be considered in this unit?
    What is economics?
    • A set of frameworks for analysing the
    interaction of individuals, groups,
    governments and countries in relation to the
    exchange of goods, services, money and
    information.
    • Economics is another perspective on
    individual and social behaviour
    • It is a social science that sometimes uses
    techniques derived from the sciences
    Economics & the knowledge tree
    Philosophy

    Politics Natural sciences

    Economics Psychology
    Biology
    Maths
    Physics
    Economists in Action
    • Macro-economists: Studying national economies
    – advising governments
    – private financial market advice
    • Micro-economists: Studying particular markets
    – labour economists
    – natural resource economists
    – social economists (eg the economics of crime)
    Purpose of the unit
    • To introduce the basic frameworks
    • To introduce you to the ‘economic way of
    thinking’
    – ‘How would an economist analyse this issue?’
    • To familiarise you with the language
    • To develop the capacity to interpret basic
    economic data
    If you understand economics you have
    the potential to:
    • Better understand the factors that most affect
    businesses
    • Better understand human behaviour
    • Anticipate economic trends, such as interest rate
    and the share market
    • Make better choices in your private and work
    lives
    • Make better use of knowledge gained in
    other disciplines
    The Level of This Unit
    • A lot of assumptions and simplifications are
    used in order to get to basic concepts
    • Concepts reflect tendencies in the ‘real
    world’ but do not explain every detail
    • Focuses on mainstream economics
    – There is considerable debate on many ideas
    • Later units explain and qualify more of the
    assumptions
    Some of the Ten Principles
    1. Decisions mean trade-offs
    • Individuals
    – Time, money & life choices
    • Business
    – Expenditure, product, investment
    • Governments
    – Equity vs efficiency
    – Taxations vs welfare
    – Freedom vs regulation
    2. Opportunity Cost
    • The true cost of a decision is what you ‘give
    up’
    • True cost = explicit cost (money outlayed)
    + implicit cost (things you forego)
    3. Rational people think at the
    margin
    • Modern microeconomics is based on the
    idea of considering the next step
    – The satisfaction gained from consuming one
    more item (marginal utility)
    – The cost of producing one more item (marginal
    cost)
    – Don’t focus on average costs or returns or sunk
    costs
    • The economics of the ‘next step’
    4. People Respond to Incentives
    • Examples
    – Lower income tax & higher consumption
    – Higher sales tax on cigarettes & lower
    consumption
    • But, beware the unintended consequence
    – Eg increased garbage dump prices & littering
    5. The ‘universal’ benefits of trade
    • Specialisation in production and trade leads
    to a net increase in available goods
    • The basis of industrial modernisation
    6. Markets are a good way to
    organise economic activity
    • Freedom of consumption & production
    • Relatively efficient exchange system
    • Consumer demand is the key market signal
    7. Governments can sometimes
    improve markets
    • Market failure
    – Externalities (eg pollution)
    • Public goods (eg defence)
    • Social decisions
    • Monopoly or unfair power relationships
    Thinking Like an Economist
    Economist as Scientist
    • The Use of Assumptions
    – eg Consumption behaviour
    – Stock market behaviour
    • Theories
    • The Use of Models
    • Observation & Data collection
    An Example of an Economic
    Model
    The Circular Flow
    • A mind map for thinking about the
    economy
    • Identifies the economists’ ‘building blocks’
    • Differentiates goods and factor markets
    • Shows the economy as an interconnected
    system
    Factor Markets
    Factors of Firms’
    Production Expenditures

    Households’ Factors of
    Income Production

    Households Firms

    Goods & Firms’


    Services Incomes

    Household Goods &


    expenditure Services
    Product Markets
    Economic Sectors
    • Firms
    • Households
    • Government
    • Overseas
    – replicates each of the other sectors
    • Known as the four sector model
    The Economist as Policymaker
    • National accounting
    • Studying economic trends
    – Warnings and implications
    • Analysing policy options
    • Estimating the ‘true’ cost of actions
    Statements
    Positive vs Normative
    • A description of ‘what • A comment on ‘what
    is’ ought to be’
    • ‘Taxes for the
    wealthiest 20% of the
    population have • ‘The rich should be
    increased in the last 5 taxed in order to
    years.’ provide money for the
    • * May be incorrect but poor.’
    still positive.
    Applied economics influences:
    • Interest rates
    • Exchange rates
    • Industry assistance
    • Taxation levels
    • Allowances and benefits (eg Austudy)
    • Trade rules
    Reading
    • Stonecash et al. (text) Chapters 1, 2 &
    Appendix in Chapter 2, for discussion of
    graphs in economics

    • Hakes & Parry (study guide) Chapters 1, 2


    Self-Test (Hakes & Parry): Chapter 1
    • Match all Terms & Definitions
    • Do both Practice Problems
    • Do Short Answer Questions
    – 2, 4, 5, 7, 8, 9, 10, 11 & 13
    • Do all True/False Questions
    • Do Multiple Choice Questions
    – 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 16, 17, 18, 19
    • Make notes to answer Advanced Critical Thinking
    – Questions 1 to 4
    • Check answers in guide and revise accordingly
    Self-Test (Hakes & Parry): Chapter 2
    • Match all Terms & Definitions
    • Do Practice Problems 1, 2, 3 & 4
    • Do Short Answer Questions
    – 3, 4, 5, 6, 7, 8, & 10
    • Do all True/False Questions
    • Do Multiple Choice Questions
    – 1, 2, 4, 5, 6, 7, 8, 10, 12, 13, 14, 15, 16, 18 & 19
    • Make notes to answer Advanced Critical Thinking
    – Questions 2, 3 & 4
    • Check answers in guide and revise accordingly
    Course information
    Lectures
    • Notes available in advance
    – USQconnect
    • Study desk
    • Overview of main themes
    • Explanation of notes
    • Assessment tips
    Economics Workshops
    • 2 hour session with 2 segments
    – 1. Peer assisted Learning
    – 2. Tutorial
    • Workshops start tomorrow (Friday)
    • Changes to workshop (tute) registration are to be
    made only through unit leader
    • Changes in tute enrolment only to those that are
    not full
    – Reviewed as places become available
    Workshop offerings
    • 10 workshops based on full enrolment
    • Some may eventually be phased out
    • Depending on attendance
    • All tutes are on from tomorrow until further
    notice
    Responsibilities
    • Lecturer deals with
    – All administrative arrangements
    – Complaints and concerns
    – marking moderation
    • Tutors:
    – elaborate on main concepts and techniques
    – mark assignments
    – address content-related questions
    Responsibilities (cont.)
    • PALS (Peer Assisted Learning) Leaders
    – Develop study skills
    – Prepare students for assessment
    – Conduct activities to facilitate learning
    – They do not deal with admin or assessment
    issues
    Class behaviour
    • Consideration for others in lectures &
    workshops
    • Civility & politeness
    • Completing assigned work
    • Switch off mobile phones in class
    Assessment
    • 2 Web Tests
    – based on any notes or discussion from lectures,
    tutorials or PALS & activities set in tutorials or
    PALS
    – 25 multiple choice questions
    – Tests open 5pm-8pm
    • Test 1 Wednesday April 16
    • Test 2 Wednesday May 28
    – You must complete test in one attempt
    • Once you start you must complete & submit
    • Assignment
    – Topic on Study Desk site or External study
    intro book
    – Due May 9
    Exam
    • 30 Multiple Choice
    • 5 Short Answer questions
    • 2 Extended response (small essay)
    • Largely based on the recommended
    exercises and questions from the study
    guide (Hakes and Parry)
    News and announcements
    • USQconnect
    – ECO 1000 study desk
    • Announcements
    • Assessment
    • Discussion
    • Unit leader monitors discussion
    Consultation
    • Geoff Cockfield
    – Monday: 1-4 (unavailable March 24)
    – Thursday 2-5
    – After lectures for admin issues and questions
    arising from the lecture
    – Other times available strictly by appointment
    only
    • Tutors
    – to be announced in Tutes

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