BUAD 5500, Topic 1 Notes

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Notes for Topic 1, BUAD 5500, Spring 2013

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BUAD 5500, Topic 1 Notes

  1. 1. Fundamentals of Economics Spring 2013 Topic 1
  2. 2. Course BasicsSyllabus Schedule is tentative Grading policy
  3. 3. Course BasicsSyllabusReadings Book Wall Street Journal
  4. 4. Course BasicsSyllabusReadingsBlackboard
  5. 5. What is economics?Scarcity Limited resources, unlimited wants
  6. 6. What is economics?ScarcityEconomics is the study of the choices madedue to scarcity
  7. 7. What is economics?Microeconomics Individual choices Individual markets
  8. 8. What is economics?MicroeconomicsMacroeconomics How individual choices combine to determine the macroeconomic BIG THREE
  9. 9. What are the big three? Inflation Nov. 2012 1.8%
  10. 10. What are the big three? Inflation Unemployment Dec. 2012 7.8%
  11. 11. What are the big three? Inflation Unemployment Output and growth 3rd quarter, 2012 estimate $15.811 trillion 3.1%
  12. 12. How economists workThe scientific method Observational versus experimental
  13. 13. How economists workThe scientific methodEconomic models The role of assumptions
  14. 14. How economists workThe scientific methodEconomic modelsPositive vs. normative economics
  15. 15. A first model: PPFProduction Possibilities Frontier Models what the economy is capable of producing
  16. 16. A first model: PPFProduction Possibilities FrontierFactors of production Physical capital Labor Natural resources Technological knowledge
  17. 17. A second model: the Circular FlowModels the interconnections in the economyModels how much of the productive potentialthe economy will use

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