101 lecture 3
Upcoming SlideShare
Loading in...5
×
 

101 lecture 3

on

  • 3,200 views

 

Statistics

Views

Total Views
3,200
Views on SlideShare
253
Embed Views
2,947

Actions

Likes
0
Downloads
9
Comments
0

3 Embeds 2,947

http://afecon101.blogspot.com 2837
http://www.afecon101.blogspot.com 104
http://afecon101.blogspot.ae 6

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

101 lecture 3 101 lecture 3 Presentation Transcript

  • Microeconomics Lecture 3 Production Possibilities Frontier Exam 1 Review
  • Four Questions
  • What to make? How much to make? Who will make it? Who will consume it? Four Questions
  • How you slice the pie determines the size of the pie
  • Who decides? Government or Individuals
  • Planned Economy vs. Market Economy
  • Planned Economy vs. Market Economy Government Economy vs. Individual Economy
  • Adam Smith Market Economy Individual Economy Karl Marx Planned Economy Government Economy
  • Adam Smith TheWealth of Nations 1776
  • Invisible Hand
  • Invisible Hand individual self interest promotes wealth
  • Price System is a Knowledge System
  • Voluntary Exchange
  • buyer and seller both win Voluntary Exchange
  • Every Exchange
  • One Price Two values Every Exchange
  • What can government do?
  • Protect property rights What can government do?
  • Property Rights
  • the ability of an individual to own and control resources Property Rights
  • It’s cheaper to pay someone else than to do it myself
  • It’s cheaper to pay someone else than to do it myself Opportunity Cost is too high
  • Production Possibilities Frontier
  • iPhone Production Possibilities Frontier
  • iPad iPhone Production Possibilities Frontier
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 iPad iPhone Production Possibilities Frontier
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 iPad iPhone Production Possibilities Frontier
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 iPad iPhone Production Possibilities Frontier
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 iPad iPhone Production Possibilities Frontier
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier 520 200 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier 520 200 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier 520 200 400 400 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier 520 200 400 400 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier 520 200 400 400 250 500 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier Efficient Combinations 520 200 400 400 250 500 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier Efficient Combinations 520 200 400 400 250 500 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier Efficient Combinations Inefficient 520 200 400 400 250 500 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier Efficient Combinations Inefficient 520 200 400 400 250 500 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 600 0 iPad iPhone Production Possibilities Frontier Efficient Combinations Inefficient Impossible with current technology 520 200 400 400 250 500 0 600
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 iPad iPhone Production Possibilities Frontier Efficient Combinations Inefficient Impossible with current technology New innovation helps iPhone
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 iPad iPhone Production Possibilities Frontier Efficient Combinations Inefficient Impossible with current technology New innovation helps iPhone
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 iPad iPhone Production Possibilities Frontier Efficient Combinations Inefficient Impossible with current technology New innovation helps iPhone
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 iPad iPhone Production Possibilities Frontier Efficient Combinations Inefficient Impossible with current technology New innovation helps iPhone New innovation helps both
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 iPad iPhone Production Possibilities Frontier Efficient Combinations Inefficient Impossible with current technology New innovation helps iPhone New innovation helps both
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 iPad iPhone Production Possibilities Frontier Efficient Combinations Inefficient Impossible with current technology New innovation helps iPhone New innovation helps both
  • 0 200 400 600 800 1000 0 200 400 600 800 1000 iPad iPhone Production Possibilities Frontier Efficient Combinations Inefficient Impossible with current technology New innovation helps iPhone New innovation helps both Now possible
  • Exam 1 review • Terms and Concepts • Formulas • Blog • Book • 25 multiple choice questions • No cell phones - bring calculator
  • Terms and Concepts • Scarcity • Choices • Tradeoffs • Rational • Incentives • Behavior • Utility • Margin • Markets • Circular-Flow Diagram • Production Possibilities Frontier • Macro vs. Micro • Positive vs. Normative • Absolute Advantage • Comparative Advantage
  • Formulas
  • Formulas Percentage Change % ∆ New - Old Old