# 01 Class Notes Micro 1 Essay

Submitted By Yao-Xiao
Words: 1400
Pages: 6

Welcome to
Microeconomics (ECON15269G)
Text:
Problems and Policies (10th edition)
Brian Lyons, Pearson Prentice Hall
Text includes a Study Guide with review questions and answers at the end of each chapter.

Instructor:
Office:
Phone:
E-mail:

Organization of the Course
What you need to know :

Learning

Outcomes

What you need to do:

A To Do list for each chapter, on SLATE

1. Recall
2. Understanding
3. Application

Page-referenced to:

Classes:

How you learn it:

Cover

main points and highlights

How you check your progress: How you are evaluated: In the text:

Textbook:

On SLATE:

Review Questions
Self-Check Questions
Critical Thinking Questions after each chapter after each chapter

See next slide.

EVALUATION SYSTEM
Quiz/Test

Coverage

Quiz #1

Chapters 1-3

10

Quiz #2

Chapters 4-5

10

Test #1

Chapters 1-6

30

Quiz #3

Chapters 7 and 9

10

Quiz #4

Chapters 10-11

10

Test #2

Chapters 7 and 9-12

30

Total

Marks

100

A typical “To Do” list for a chapter
To Do List for Chapter 1
Learning Activities:
2. Read the Learning Outcomes for Chapter 1.
3. Read Chapter 1 in the text.
4. Review the PowerPoint slideshow for Chapter 1.
Practice Exercises:
1. Do the self-check questions on SLATE.
2. Do the Review Questions in the text (pages 16-18); check your answers (page 345).
3. Do ‘Critical Thinking’ questions #1-5 in the text (pp.18-19); check your answers (p.345).

Done

QUESTIONS?

See the “Frequently Asked Questions” File in the Introduction and Orientation section

Chapter 1
Introduction

Today, we enjoy a high standard of living…

… whereas our greatgrandparents lived without the things we have toda
-- AND worked much longer hours!

What has made our standard of living so much highe

The Basic “Economic Problem” of Scarcity
Productive Inputs

Output

Economic
System

The “scarcity
 problem” 
Pages 4-6

Opportunity Cost
Deserted Island Scenario:
2 products, 8 workers.
Each worker produces
1 unit of food per day or
1 unit of fuel per day.

Want 25% more food:

Food:
4 workers
4 units/day

Food:

Fuel:
4 workers
4 units/day

Fuel:

Basic problem of scarcity:
We lack the resources to
Produce everything that we want.

What is the cost of the extra unit of food per day?

Page 6-10

Suppose that in an island mini-economy there were:
2 people catching a total of 6 fish per day and
2 people picking a total of 8 kilograms of fruit per day
If they decided that they wanted
3 more fish each day, what would be the opportunity cost of the additional 3 fish?

To produce 3 more fish/day

A Production-Possibilities Curve
Product A

40 of A; 0 of B

You can have more of B

40

IF

30
20

10
0

40 of B; 0 of A

10

20

30

40 Product B
Page 7-10

The opportunity cost of a \$9,000 automobile that you are considering buying is:
(a) \$9,000.
(b)

\$200 per month payment (principal and in on the loan that was needed to buy the car.

(c)

not a serious consideration in the decision whether to buy the car.

(d) the boat and fishing vacation that could have been bought instead of the car.
(e)
none of the above.

What is the opportunity cost of the government spending
\$2 billion more on health care?

What is the opportunity cost of your attending college?

Overcoming Scarcity
How could the islanders get 5 units of food without having to accept a reduction in fuel production from 4 units to 3 units?
The 4 food workers are producing
4 units of food/day
(1.00 units of food/worker/day)

The key is

Productivity and the Standard of Living
If the productivity of food workers increased by 25%
 5 units of food are available each day instead of 4

25% more

and if the productivity of fuel workers increased by 25%
 5 units of fuel are available each day instead of 4

25% more
If the productivity of workers in general increases,

is the key to a

 higher standard of living
Page 5