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Gale Pooley
Gale Pooley

This document provides an overview of topics that will be covered in an introductory microeconomics course. It discusses how economics uses simplified models of reality and focuses on incentives, tradeoffs, and unintended consequences. Examples are given of how economic indicators like income per person have changed dramatically over time. The document emphasizes that economics aims to understand how incentives influence behavior.

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ECO 101 Microeconomics
Syllabus
Rational Incentives Margin
Science
Science Hard Soft
Most people Most of the time
Most people Most of the time Economics is a Soft Science
Optimize Tradeoffs
Tradeoffs Mileage Safety A 2001 National Academy of Sciences study estimated that the traffic death toll attributable to past downsizing was approximately 2,000 lives per year.
Economic Models
Economic Models Simplified Version of Reality
Economic Models Simplified Version of Reality Value in Prediction
Incentives Matter
Incentives Matter Change Incentives Change Behavior
Incentives are more important than goals
Consequences matter more than intentions
Unintended Consequences
Macro Micro
What is Wealth?
What is Wealth? What People Want
Get wealthy by making others happy
Global Device
Global Device
Global Device
ARM Holdings Wolfson Marvel Skyworks U.S. CSR Linear Technologies U.K. NXP National Semiconductor Germany Sharp Korea Samsung Toshiba Japan Infineon Broadcom Taiwan Numonyx Micron China Dialog Semiconductor Texas Instruments STMicroelectronics Silicon Storage RF Microdevices Cirrus Logic
Ideas occur in minds not places
Hockey Stick Trends
Angus Maddison
Angus Maddison 1 AD
Angus Maddison 1 2012 AD
$100 Angus Maddison 1 2012 AD
$100 Income Per Person Angus Maddison Per Day 1 2012 AD
$100 Income Per Person Angus Maddison Per Day $3 1 2012 AD
$100 Income Per Person Angus Maddison Per Day $3 1 2012 AD
$100 Income Per Person Angus Maddison Per Day $3 1 2012 AD
$100 Income Per Person Angus Maddison Per Day “The Millennium–Poor Until 1820” $3 1 1820 2012 AD
$100 Income Per Person Angus Maddison Per Day $30 “The Millennium–Poor Until 1820” World 10x $3 1 1820 2012 AD
$100 Northern Europe North America Income 33x Per Person Angus Maddison Per Day $30 “The Millennium–Poor Until 1820” World 10x $3 1 1820 2012 AD
Slope Percentage Change Relationships Cause and Effect Areas
Y X
Price Y X Quantity
$ Price Y X Quantity Q
$ Q
$ Q
$ Q
$ Q
$ Q
$ Q
The End

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101 lecture 2

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  22. In the previous lesson we were talking about the iPhone as a great innovation.\nBut what is “Innovation”?\n
  23. In is not true because places don’t design things, people design things. Ideas occur in minds not in places.\n\n
  24. Welcome to OneMinuteEcon. In this lesson we want to talk about ideas, inventions, and innovations.\n
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