ECON 1 Study Guide - Spring 2018, Comprehensive Midterm Notes - Labour Economics, Opportunity Cost, Interest Rate

266 views111 pages
Published on 12 Oct 2018
School
Berkeley
Department
Economics
Course
ECON 1
Professor
ECON 1
MIDTERM EXAM
STUDY GUIDE
Fall 2018
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 111 pages and 3 million more documents.

Already have an account? Log in
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 111 pages and 3 million more documents.

Already have an account? Log in
#1 Tuesday 1/16 (Ch.2)
Course information
Read syllabus, check out class website for additional information
Letter of introduction due in section this week
Grading
Section (25%)
Attendance (3%)
Presentation (8%): 2 group presentations.
Participation (7%)
Essay (7%): due at the end of the semesters
Problem sets (7%)
Weekly, graded for completeness, PS1 due in section week of 1/22
Optional practice PS available closer to exams
Midterm (20%): on 2/27
Lecture, textbook, problem sets, readings, up to 2/26
Final (45%): Cumulative
iClicker (3%)
Allowed to miss up to 3 lectures and still get full credit, starts 1/23
1-2 questions per lecture
Class schedule
1/16: chapter 2 and skip circulation-flow diagram
1/18: finish ch2 and ch3
1/23: chapter 4
1/30: chapter 5
No class on 2/22 and 3/13 but regular section
What is economics?
Microeconomics is the study of how consumers and firms make decisions when there are trade offs
Macroeconomics is the study of economy-wide phenomena, including inflation, unemployment, and
economic growth
Why economics matter
Understand how the economy works
Understand modern society: broad view of society and policy making issues using rigorous tools
Make better choices as a citizen
Make better choices in your personal finances
Strong career opportunities
What economists do
Scientists: try to explain the world
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 111 pages and 3 million more documents.

Already have an account? Log in
Positive statements: attempts to describe the world as it is.
Policy advisors: try to improve it
Normative statements: attempts to prescribe what to do. (What should be done)
Example
Lower taxes result in more economic growth in the long run — positive
A tax cut needed to stimulate the economy — normative
In this class we will focus on positive analysis, but in section you will have a chance to engage in
normative analysis
Why economists disagree
Economists sometimes give conflicting policy advice
Insufficient empirical evidence
Different political values
Yet on most issues economists tend to agree
Our first model
The production possibilities frontier (PPF)
A graph that shows the combinations of two goods the economy can possibly produce given the
available resources and the available technology
Example
Two goods: computers and wheat
One resource: Labor
Producing one computer requires 100 workers
Producing one ton of wheat requires 10 workers
PPF tell us the mix of computers and wheat that a country can produce
The PPF and opportunity cost
Society always faces trade offs: getting more of one good requires sacrificing some of the other.
The opportunity cost of an item is what must be given up to obtain that item.
Moving along a PPF involves shifting Labor fro one good to the other .
The slope of the PPF tells you the opportunity cost.
The opportunity cost of 1 computer is 10 tons of wheat
Economics growth and the PPF
Sources of growth:
More Labor
Better technology
Economics growth shifts the PPF outward.
find more resources at oneclass.com
find more resources at oneclass.com
Unlock document

This preview shows pages 1-3 of the document.
Unlock all 111 pages and 3 million more documents.

Already have an account? Log in

Document Summary

Read syllabus, check out class website for additional information. Letter of introduction due in section this week. Essay (7%): due at the end of the semesters. Weekly, graded for completeness, ps1 due in section week of 1/22. Optional practice ps available closer to exams. Lecture, textbook, problem sets, readings, up to 2/26. Allowed to miss up to 3 lectures and still get full credit, starts 1/23. 1/16: chapter 2 and skip circulation-flow diagram. No class on 2/22 and 3/13 but regular section. Microeconomics is the study of how consumers and firms make decisions when there are trade offs. Macroeconomics is the study of economy-wide phenomena, including inflation, unemployment, and economic growth. Understand modern society: broad view of society and policy making issues using rigorous tools. Make better choices in your personal finances. Positive statements: attempts to describe the world as it is. Normative statements: attempts to prescribe what to do. (what should be done)

Get OneClass Grade+

Unlimited access to all notes and study guides.

YearlyMost Popular
75% OFF
$9.98/m
Monthly
$39.98/m
Single doc
$39.98

or

You will be charged $119.76 upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.