Parkes' Economics for Business I Assignments, Fall 2013


[Andrew's SILC Home Page, Shanghai, China] - [Drew's Home Page, United States]  





       Tentative Schedule and Course Assignments:



                               Week 10

            Nov. 5, 2013       Chapter 30: Money, Banking, and the Federal Reserve System and Chapter 31: Monetary Policy

            • Balanced Budget Increase and AD/SRAS/LRAS Quiz given on Thursday, Oct. 31


            • Chapter 30: Money, Banking, and the Fed
              • The Meaning of Money
                • What is Money?
                • The Role of Money
                • Types of Money
                • Measuring the Money Supply
              • Monetary Role of Banks
                • What Banks Do
                • The Problem of Bank Run
                • The Required Reserve Ratio
              • Bank Regulation
                • Deposit Insurance
            • Krugman's Chapter 30 PPT, 2nd Edition


            • Chapter 31: Monetary Theory
              • Opportunity Cost of Money - the "price" (interest rate)
              • Two Theories of Money Demand
                • Liquidity Preference Theory (Money Demand depends upon the interest rate)
                  • Nominal versus Real Demand for Money
                  • Shifts in the Demand for Money Curve: Price Level changes, Technology and Income Changes
                • Velocity Approach to Money Demand
                  • Quantity Equation
                  • Percentage Change Identity: %M + %V = %P + %Y
            • Krugman's Chapter 31 PPT - Second Edition


            Nov. 7, 2013       Chapter 31: Monetary Policy

            • Money Market and AD/SRAS/LRAS Quiz given on Tuesday, Nov. 5

            • Chapter 31: Monetary Theory - continued
              • Two Models of Interest Rates? See the Box on page 758!
              • Monetary Policy and the interest rate
                • Contractionary Monetary Policy
                • Expansionary Monetary Policy
              • The Effects upon Aggregate Demand
                • Fighting a Recessionary Gap
                • Cooling an Inflationary Gap
              • Short Run versus Long Run Effects
                • Price level effect in the long run on Money Demand, interest rates return and higher costs decrease business firms' supply
              • Review
              • Review Terms, Definitions, and Other Things



                Final Exam, Chapters 12 & 13, 22 - 24 and 27 - 31 on Tuesday, November 12, 2013
                      From 8:15 am to 10:15 am:
                       Classrooms 1131 and 1133
                       





        PAST ASSIGNMENTS:

                                     Week 9

                  Oct. 29, 2013       Chapter 28: Aggregate Supply and Aggregate Demand

                  • Chapter 27: Income and Expenditure
                    • Paradox of Thrift
                  • Chapter 28: Aggregate Supply and Aggregate Demand
                    • Aggregate Supply Curve
                      • In the Short-Run slopes upward
                      • Wage contracts make wages "Sticky" causing the upward slope
                      • Shifts in AS
                        • Changes in Commodity Prices
                        • Changes in Nominal Wages
                        • Changes in Productivity
                    • In the Long Run Aggregate Supply is vertical - Called Potential Output
                    • From the short-run to the long-run
                      • wages change affecting business costs which affect suppliers and shift short-run AS
                    • The Aggregate Demand Curve
                      • Why the Aggregate Demand Slopes Downward
                        • Wealth Effect
                        • Interest Rate Effect
                      • Why the Aggregate Demand Curve Shifts
                        • Changes in Expectations
                        • Changes in Wealth
                        • Changes in the Stock of Physical Capital
                        • Changes in Government Policies - Monetary and Fiscal Policy
                  • Krugman's Chapter 28 PPT - 2nd Edition


                  Oct. 31, 2013       Chapter 29: Fiscal Policy

                  • Chapter 29: Fiscal Policy
                    • 1. The Basics
                      • Taxes, Purchases, and Transfers
                      • The Government Budget and Total Spending
                      • Expansionary and Contractionary Policies
                      • Lags in Fiscal Policy!
                    • 2. Fiscal Policy and the Multiplier
                      • Government Spending versus Taxes and their Multiplier Effects
                      • How Much Bank for the Buck?
                      • Automatic Stabilizers
                    • 3. The Budget Balance
                      • Saving (Borrowing) by the Government
                      • Cyclically Adjusted Budget Balance
                      • Should the Budget be Balanced?
                    • Federal Government's Budget Constraint PPT
                    • 4. Long-Run Implications of Fiscal Policy
                      • Deficits, Surpluses, and Debt
                      • Problems With the Rising Government Debt
                      • Deficits and Debt in Practice?
                  • Government Spending and Taxation in 2010 in the U.S.A.
                  • Krugman's Chapter 29 PPT, 2nd Edition
                  •                  Week 8

                  Oct. 22, 2013       Chapter 23: Tracking the Economy and Chapter 24: Unemployment and Inflation
                  Oct. 24, 2013       Chapter 27: Income and Expenditure Oct. 15, 2013       Chapter 13: Perfect Competition and the Supply Curve
                  Oct. 17, 2013       Chapter 22: The Big Picture Oct. 8, 2013       Chapter 11: Consumer Preferences and Consumer Choice

                  • Chapter 11: Consumer Preferences and Consumer Choice

                    • Mapping the Utility Function
                      • The Consumption Bundle
                      • The Utility Function and Marginal Utility
                      • The Principle of Diminishing Marginal Utility

                    • Budgets and Optimal Consumption
                      • Budget Constraints and Budget Lines
                      • Optimal Consumption Choice

                    • Spending the Marginal Dollar
                      • Marginal Utility per dollar
                      • Optimal Consumption Rule

                    • Quiz #8 Answers
                    • Krugman's Chapter 11 PPT - Second Edition


                  Oct. 10, 2013       Finish Chapter 11 & Review

                  • From Utility to the Demand Curve
                    • The Substitution Effect
                    • The Income Effect

                  • Review for the Midterm Exam

                    • Chapters 1 - 7 and 9 - 11

                  • Quiz #9 Answers


                  Oct. 11, 2013       Midterm Exam!

                  • Chapters 1 - 7 & 9 - 11, Friday 1:40 pm - 3:10 pm, Rooms 2111 & 2112



                  Oct. 12, 2013       Chapter 12: Inputs and Costs

                  • Chapter 12: Inputs and Costs

                    • The Production Function
                      • Fixed versus Variable Inputs
                      • Short run versus Long Run
                      • Total Product and Marginal Product Curves

                    • Production to Cost Curves
                      • Short Run Total, Average and Marginal Cost curves
                      • Long Run AC and MC curves

                    • Returns to Scale
                      • Constant Returns to Scale
                      • Increasing and Decreasing Returns to Scale

                    • Krugman's Chapter 12 PPT - Second Edition

                                     Week 5

                  Oct. 1, 2013       National Day Holiday!

                  • Enjoy the Holidays!


                  •                  Week 4

                  Sept 24, 2013       Chapter 6: Elasticity continued and Chapter 7: Taxes

                  • Chapter 6: Elasticity

                    • Defining and Measuring Elasticity
                      • Calculating the Price Elasticity of Demand
                      • Midpoint Method

                    • Interpreting the Price Elasticity of Demand, pp. 148-155.
                      • How Elastic is Elastic?
                      • Perfectly and Unit Elasticity
                      • Total Revenue (Expenditures)
                      • Price Effect and Quantity Effect
                      • Price Elasticity Along the Demand Curve
                      • What Factors Determine the Price Elasticity of Demand?

                    • Other Demand Elasticities
                      • Cross-Price Elasticity of Demand
                      • Income Elasticity of Demand
                      • Price Elasticity of Supply

                  • Problem Set #2 and the Answer Key is NOW here.

                  • Quiz #6

                  • Quiz #7 Question and Answer
                  • Krugman's Chapter 6 PPT - Second Edition


                  • Chapter 7: Taxes

                    • A Preliminary View
                      • The Effect of an Excise Tax on Quantities and Prices
                      • Price Elasticities and Tax Incidence
                      • Consumers or Producers incidence is higher?

                    • The Benefits and Costs of Taxation
                      • The Revenue from an Excise Tax
                      • Tax Rates and Revenue
                      • Laffer Curve

                    • The Costs of Taxation
                      • The Deadweight Loss (DWL) of a Tax
                      • Elasticities and DWL

                  • Krugman's Chapter 7 PPT - Second Edition


                  Sept 26, 2013       Chapter 9: Making Decisions and Chapter 10: The Rational Consumer

                  • Chapter 9: Making Decisions

                    • Opportunity Cost and Decisions
                      • Implicit and Explicit Cost
                      • Accounting and Economic Profit
                      • Marginal Decisions
                        • Marginal Cost
                        • Marginal Benefit
                        • Optimal Quantity and the Principal of Marginal Analysis

                      • Sunk Costs

                  • Krugman's Chapter 9 PPT - Second Edition


                  • Chapter 10: The Rational Consumer

                    • Utility: Getting Satisfaction
                      • The Consumption Bundle
                      • The Utility Function and Marginal Utility
                      • The Principle of Diminishing Marginal Utility

                    • Budgets and Optimal Consumption
                      • Budget Constraints and Budget Lines
                      • Optimal Consumption Choice

                    • Spending the Marginal Dollar
                      • Marginal Utility per dollar
                      • Optimal Consumption Rule

                    • From Utility to the Demand Curve
                      • The Substitution Effect
                      • The Income Effect

                  • Krugman's Chapter 10 PPT - Second Edition



                                   Week 3

                Sept 17, 2013       Chapter 5: Price ceilings and floors

                Sept 19, 2013       Mid Autumn Festival Holiday

                • Relax and enjoy the holiday


                •                  Week 2

                Sept 10, 2013       Chapter 3: Supply and Demand

                • Chapter 2a: Appendix on Math and Graphing - take notice you need to remember these concepts

                • Chapter 3: Supply and Demand: A Competitive Market

                  • The Demand Curve
                    • The Law of Demand (Quantity Demanded versus Demand)
                    • Prices of Related Goods Substitutes and Complements)
                    • Income changes (Normal versus Inferior Goods)
                    • Tastes and Preferences
                    • Expectations
                    • Number in the Marketing Area

                  • The Supply Curve
                    • Quantity Supplied versus Supply Changes
                    • Input Prices
                    • Prices of related goods
                    • Technology
                    • Expectations
                    • Number of Suppliers

                  • Equilibrium
                    • Surpluses and Shortages
                    • Shifts in the Curves

                • Quiz #3: Supply and Demand Shifts simultaneously

                • Krugman's Chapter 3 PPT - Second Edition



                Sept 12, 2013       Chapter 4: Consumer and Producer Surplus

                • Chapter 4: Consumer and Producer Surplus

                  • Consumer Surplus and the Demand Curve
                    • Willingness to Pay
                    • Area under the demand curve and above the price
                    • Change in Price, Change in Consumer Surplus

                  • Producer Surplus and the Supply Curve
                    • Cost and Producer Surplus
                    • Area above the supply curve and below the price
                    • Change in Price, Change in Producer Surplus

                  • Gains from Trade and CS/PS
                    • The Efficiency of Markets
                    • Equity and Efficiency
                    • Property Rights
                    • Economic Signals
                    • Inefficiencies
                    • Market Failures

                • Quiz #4: Review CS and PS for Price Ceilings and Price Floors


                • Krugman's Chapter 4 PPT - Second Edition

                •                  Week 1

                Sept 3, 2013       Chapter 1: Economy

                • Chapter 1: First Principles

                  • Choices
                    • Resources
                    • Scarcity
                    • Trade-offs
                    • Marginal Analysis
                    • Incentives

                  • How Economies Work
                    • Interaction
                    • Trade
                    • Gains from Trade
                    • Specialization
                    • Equilibrium
                    • Efficiency vs. Equity

                  • Krugman's Chapter 1 PPT - Second Edition


                • Chapter 2: Economic Models: Trade-offs and Trade

                  • Other Things Held Equal Assumption

                  • A Model: Trade-Offs
                    • Production Possibilities Frontier
                    • Efficiency
                    • Opportunity Cost
                    • Economic Growth
                    • Factors of Production
                    • Technology

                Sept 5, 2013       Chapter 2: Economic Models: Trade-offs and Trade

                • Chapter 2: Economic Models: Trade-offs and Trade

                  • Other Things Held Equal Assumption

                  • A Model: Trade-Offs
                    • Production Possibilities Frontier
                    • Efficiency
                    • Opportunity Cost
                    • Economic Growth
                    • Factors of Production
                    • Technology

                  • Comparative Advantage and Gains from Trade
                    • Comparative Advantage
                    • Absolute Advantage
                    • Comparative Advantage and International Trade

                  • Quiz #2: Problem #2 on page #42 (Click here for the Answers)

                  • Transactions and the Circular Flow
                    • Barter
                    • Circular-Flow Diagram
                    • Households and firms
                    • Markets for Goods and Services
                    • Factor Markets
                    • Income Distribution

                  • Positive versus Normative Economics


                  • Krugman's Chapter 2 PPT - Second Edition





        

    [Andrew's SILC Home Page, Shanghai, China] - [Drew's Home Page, United States]

    email: andrew at andrewparkes.com
    Last Update: November 10, 2013
    By Andrew L. H. Parkes, Ph. D.