MGEB02H3 Study Guide - Summer 2018, Comprehensive Midterm Notes - Wide Area Network, Rationality, Price Elasticity Of Demand
12 Oct 2018
School
Department
Course
Professor
MGEB02H3
MIDTERM EXAM
STUDY GUIDE
Fall 2018
MGEB02H3F – Lecture 1: Intro & Preliminaries – Supply & Demand
Economics – study of decision-making given constraints (lim.resources) where individuals face trade-offs
when choosing b/w diff. alternatives
e.g Limited budgets + time for consumers,
Limited ability to produce for producers
- Econ helps gain insights into operation of individual markets for goods & services, financial
markets, and global econ system
- Develop logical way of problem-solving
- Learn important quantitative + analytical skills
- Leads to wide range of careers, includes (not lim.to) business, law, econ research + consulting
o Role of universities in local invention
o Influences on direction of innovation
o Impact of student debt on entrepreneurship
o Effects of min. wage laws
o Impacts of discrimination on innovation
o Eviction causing poverty
o Causes of gender wage gap
MICROECONOMICS AS A SOCIAL SCIENCE
Microeconomics – study individual decisions of econ.agents; models provide insight by providing basic
structure
- Behaviour of consumers (CH 3-5): DEMAND
- Production decisions of firms (CH 6-8): SUPPLY
- Interaction b/w agents in market environments (CH 9-11) relevant for public policy, antitrust
authorities, etc..)
- Methodology:
o Theories – used to understand diff forces in economy, make predictions, improve on
outcomes via changing institutions
Economic models – decription of an econ.situation via words + math
expressions which are often depicted in diagrams.
Consists of the following:
Agents: resources, objectives, preferences, ehaiour, teholog…et
Economic evmt (markets, technology, contractual arrangements, other
relevant institutions)
Data & rigorous statistical methods to validate a model
Theories tested + improves
Theories = invariably imperfect but give insight into observed
phenomens
o Concepts:
find more resources at oneclass.com
find more resources at oneclass.com
Positive Analysis statements describing relationship of cause-and-effect.
Focus is on explanation + prediction
E.g. when it is hot + dry, forest fires are more likely
Normative Analysis analysis examining questions of what ought to be.
Typically supplemented by value judgments
E.g. everyone should vote
SUPPLEMENTAL – Textbook: Chapter 1- A golden age of microecon, The future of economics is not
dismal
DEMAND & SUPPLY
- SUPPLY – the relationship b/w quantity and price of goods that producers are willing to sell
o Measures quantity on x-axis, price on y-axis
Qs = Qs(P)
o Other Variables:
Technology – improvements in production tech
Costs of Production – Labour, Capital, Raw materials (lower costs allows more
production @ every price)
o CHANGES:
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Mgeb02h3f lecture 1: intro & preliminaries supply & demand. Economics study of decision-making given constraints (lim. resources) where individuals face trade-offs when choosing b/w diff. alternatives e. g limited budgets + time for consumers, Econ helps gain insights into operation of individual markets for goods & services, financial markets, and global econ system. Leads to wide range of careers, includes (not lim. to) business, law, econ research + consulting: role of universities in local invention. Impact of student debt on entrepreneurship: effects of min. wage laws. Impacts of discrimination on innovation: eviction causing poverty, causes of gender wage gap. Microeconomics study individual decisions of econ. agents; models provide insight by providing basic structure. Interaction b/w agents in market environments (ch 9-11) relevant for public policy, antitrust authorities, etc) Methodology: theories used to understand diff forces in economy, make predictions, improve on outcomes via changing institutions. Economic models decription of an econ. situation via words + math expressions which are often depicted in diagrams.
