Parkes' Introduction to Economics Assignments Page, Section 3, Fall 2016
Paper #1: Pick an Entrepreneur
NOTE that the BCC, FCB 114, is available for help with papers, even on SKYPE but you must book an appointment in person.
Review Sheet for the Microeconomics portion of Economics 280 - for the Midterm Exam on Oct. 19, 2016
Neal's *SI* hours: Mondays 9-10am in the Navajo Rm, Tuesdays 7-8pm Navajo Rm, Wed. 7-8pm in the Yavapai Rm, and Thursdays 4-5pm Navajo Rm with all rooms being in the DuBois Center.
Second Written Assignment is here, Due November 30, 2016 The article to read is here: Article on Infrastructure Spending
Tentative Schedule and Course Assignments:
- Chapter 20: Monetary Policy
- How Are Interest Rates Determined?
- The Demand For Money
- 1. Transactions Demand
- 2. Precautionary Demand
- 3. Speculative Demand
- The Demand for Money Curve
- The Supply of Money
- The Equilibrium Interest Rate
- Excess Supply of or Demand for Money
- Monetary Policy's effect on the Interest Rate
- Transmission Mechanism to Investment (and Consumption)
- Affect on AD/AS in the Short-run
- The Equation of Exchange
- Velocity is constant?!
- Comparison of Classical, Keynesian, and Monetarist views
Tucker Chapter 20 PPT
AND
Review
REVIEW SHEET
Answers for Quiz #12 - 1c and 3 were not asked in our class.
Week 16
December 14, 2016 AT 3 pm! Final Exam over Macroeconomics
Tucker Chapter 19 PPT
Week 13
November 23, 2016 Chapter 18: Money and the Federal Reserve System
- Chapter 18: Money and the Federal Reserve System
- What is Money? The 3 Functions of Money
- 1. Medium of Exchange
- 2. Unit of Account
- 3. Store of Value
- Credit Cards? NOPE!
- Commodity versus fiat money - "intrinsic value"
- Money Definitions - M1, M2 - "anything generally accepted in payment for goods and services"
- Money supply is M1: currency, checking accounts, travelers checks
- The Federal Reserve System
- The FOMC
- 12 Banks - EACH President is on the FOMC, but only 4 vote rotating every few years
- 7 Governors
- Know at least 5 things they do
- The DIDMCA of 1980 - a revolution
Tucker Chapter 18 PPT
Week 12
November 16, 2016 Chapter 14: Aggregate Demand and Aggregate Supply
- Chapter 14: Aggregate Demand and Aggregate Supply
- Aggregate Demand Curve
- 1. Real Balance Effect
- 2. Interest Rate Effect
- 3. Net Export Effect
- These three are the reasons a price level change negatively effects real GDP - the Causation chain on p. 297, PPT slide 11
- NonPrice-Level Determinants of Aggregate Demand
- C, I, G, NX (note that Consmption includes taxes)
- The Aggregate Supply Curve
- Keynesian View
- Classical View
- Three Ranges of The AS
- Changes in the AD-AS Macroeconomic Equilibrium
- See Page 306, PPT 34 & 35
- Non-Price Determinants of AS
- Wages (and resource prices), Taxes, Technological change, Regulation
- Cost-push and Demand Pull inflation
Tucker Chapter 14 PPT
Chapter 15: Fiscal Policy
- Discretionary Fiscal Policy
- Increasing Government Spending to Combat a Recession
- Spending Multiplier Arithmetic
- Cutting Taxes to Combat a Recession
- Using Fiscal Policy to Comat a Recession
- Automatic Stabilizers
Tucker Chapter 15 PPT
Week 11
November 9, 2016 Chapter 13: Inflation
- Chapter 13: Inflation
- The Meaning and Measurement of Inflation
- The CPI: Consumer Price Index
- How it is computed
- Base Year (=100 or 1.0)
- Disinflation
- Criticisms of the CPI
- 1. Typical Market Basket - What is typical? Average?
- 2. Qualiy: Is a record disk the same as a CD? an MP3? What is a 286 computer?
- 3. Substitution bias: When the price of a Big Mac increases, what do you do? Any good?
- Inflation and Income
- Inflation and Wealth
- Inflation and Real Interest Rate
- Demand-Pull and Cost-Push Inflation
Tucker Chapter 13 PPT
Chapter 14: Aggregate Demand and Aggregate Supply
- Aggregate Demand Curve
- 1. Real Balance Effect
- 2. Interest Rate Effect
- 3. Net Export Effect
- These three are the reasons a price level change negatively effects real GDP - the Causation chain on p. 297, PPT slide 11
- NonPrice-Level Determinants of Aggregate Demand
- C, I, G, NX (note that Consmption includes taxes)
- The Aggregate Supply Curve
- Keynesian View
- Classical View
- Three Ranges of The AS
- Changes in the AD-AS Macroeconomic Equilibrium
- See Page 306, PPT 34 & 35
- Non-Price Determinants of AS
- Wages (and resource prices), Taxes, Technological change, Regulation
- Cost-push and Demand Pull inflation
Tucker Chapter 14 PPT
Week 10
November 2, 2016 Chapter 12: Business Cycles and Unemployment
- Chapter 12: The Roller Coaster and Unemployment
- The Four phases of the Business Cycle
- Economic Growth
- Other Countries and Indicators
- Unemployment
- Calculations
- Other Countries
- Discouraged Workers
- Types of Unemployment
- Frictional
- Structural
- Cyclical
- The Goal of Full Employment
- The GDP Gap
- Tucker Chapter 12 PPT
Week 9
October 26, 2016 Chapter 11: Gross Domestic Product - A 2 QUIZ Day
- Review the Midterm Exam - Quiz!
- Chapter 11: Gross Domestic Product
- Only New Domestic Production
- Final Goods and Services
- How we measure GDP
- The Circular Flow Diagram
- The Expenditure Approach: C + I + G + NX
- The Income Approach: wages, rent, interest, and profit
- National Income
- Personal Income
- Disposable Personal Income
- Calculating REAL GDP - QUIZ
- Tucker Chapter 11 PPT
Week 8
October 19, 2016: Midterm Exam, Microeconomics, Chapters 1-3, and 5-8 and Monopolistic Competition Characteristics
Week 7
October 12, 2016 Chapter 8: Monopoly and Chapter 9: Monopolistic Competition
- Read Chapter 8: Monopoly
- Monopoly Market Structure
- Single Seller
- Unique Product
- Impossible Entry
- 1. Ownership of a Vital Resource (Bauxite)
- 2. Legal Barriers
- 3. Economies of Scale
- Price and Output Decisions
- Price Maker
- Marginal Revenue and Total Revenue
- Focus on MR=MC
- Graphs for Profit and SR Loss - KNOW HOW TO GRAPH THESE TWO!
- Monopoly in the Long run
- Price Discrimination
- Arbitrage
- Is Price discrimination fair?
- Monopoly as a Misallocator
PC means more output and a lower price
Comparison Graph, p. 174
Tucker Chapter 8 PPT
Monopolistic Competition - know the characteristics, it is not necessary to understand the graph, etc.
Week 6
October 5, 2016 Chapter 7: Perfect Competition
- Read Chapter 7: Perfect Competition
- Market Structure, what is it?
- Four types of Markets, Economically Speaking:
- Perfect Competition
- Monopolistic Competition
- Oligopoly
- Monopoly
- Perfect Competition: Four key concepts;
- 1. Large number of Small Firms (and large number of buyers)
- 2. Homogeneous Product
- 3. Very Easy Entry and Exit
- 4. Perfect Information
- Perfect Competition as a Price Taker
- Short-Run Profit: two methods
- Total Revenue minus Total Cost
- Marginal Revenue equals Marginal Cost
- Short Run loss, Shut down, and Short-run equilibrium, Short-run Supply Curve (MC curve)
- Be familiar with how to graph each of these!
- Long-run Supply Curves under Perfect Competition
- Tucker Chapter 7 PPT
Week 5
September 28, 2016 Chapter 6: Production Costs, continued
- Read Chapter 6: Production Costs
- Cost and Profit
- Explicit and Implicit Costs
- Economic and Accounting Profit
- "Normal Profit"
- Short-Run Production Costs
- Short Run versus Long Run
- The Production Function
- Marginal Product and Average Product
- The Law of Diminishing Returns
Short-Run Cost formulas
Total Cost Curves versus Average Cost Curves
Tucker Chapter 6 PPT
Paper #1: Pick an Entrepreneur
NOTE that the BCC, FCB 114, is available for help with papers, even on SKYPE
Week 4
September 21, 2016 Chapter 5: Price Elasticity of Demand, continued
- Read Chapter 5
- Price Elasticity of Demand
- The Midpoint Formula
- Total Revenue Test
- Elastic Demand
- Inelastic Demand
- Unitary, Perfectly Elastic, and Perfectly Inelastic Demand
- Variations of Price Elasticity along the Demand Curve
- Determinants of Price Elasticity of Demand
- Availability of Substitutes
- Share of the Budget
- Adjustment over Time
Tucker Chapter 5 PPT
Week 3
September 14, 2016 Chapter 3: Market Demand and Supply, continued
- Read Chapter 3
- Law of Demand, Change in Demand versus Change in Quantity Demanded
- Review the Determinants of Demand
- P-P-P-PINTs - The Demand Side
- P-P-PESTs - The Supply Side
- The Law of Supply, again a Change in Supply (shift) versus a Change in Quantity Supplied
- Price of Other Goods, Price of Inputs, Expectations, Suppliers, and Technology
Surplus, Shortage, Equilibrium - there are only 3 possible conditions in the market
Tucker Chapter 3 PPT
Chapter 5: Price Elasticities
Week 2
September 7, 2016 Chapter 2: Production Possibilities, Opportunity Cost, and Economic Growth
- Read Chapter 2
- You need to know these: What are the three Goals of any Macroeconomy?
- Grow the economy - Economic Growth
- Price Stability - not inflation OR deflation
- Full Employment - Everyone has a job
- What, How, and For Whom is production?
- Opportunity cost (the NEXT BEST alternative)and marginal analysis
- Setting up the Production Possibilities Curve (Frontier or PPC)
- Efficiency
- Unattainable, given today's resources and technology
- Law of Increasing Opportunity Cost
- Economic Growth: Changes in Resources, Technological Change
- Present Investment versus Future Production
What we learn from the PPF
Tucker Chapter 2 PPT
Read Chapter 3
Law of Demand, Change in Demand versus Change in Quantity Demanded
P-P-P-PINTs - The Demand Side
Tucker Chapter 3 PPT
Week 1
August 31, 2016 Chapter 1: Introducing the Economic Way of Thinking
- An Introduction to the Principles of Macroeconomics
- What are the 4 Resources in the Macroeconomy? pp. 5-6
- With each resource is a payment to that resource.
- Some definitions: ECONOMICS, scarcity, good, service, market, rational self interest,
- The simple Circular Flow Model , p. 6
- Positive vs. Normative Economics
- Ceteris paribus and the fallacy of causation, what are secondary effects?
- Day 1 PPT An Introduction
- Tucker Chapter 1 PPT
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email: andrew at andrewparkes.com
Last Update: December 6, 2016
By Andrew L. H. Parkes, Ph. D.