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An Invitation to
The Principles of Macroeconomics
Fall 2014

Principles of Macroeconomics 1115 (01) 09:15 - 10:20 M,W,R 200 Richards
Principles of Macroeconomics 1115 (02) 10:30 - 11:35 M,W,R 200 Richards

What does Economics have to do with the number of close friends you have, congested freeways, concerts tickets, going to a private college rather than a public one, scalping tickets, 8:00 and 2:00 classes, wearing seat belts, getting to class on time—or coming at all, the price of tea in China, dairy farmers building airplanes, the national debt, taxes, and oil drilling in the ANWR? What does economics have to do with all these? You may be surprised! And of course, these issues are just the tip of the iceberg. There are many more other important issues such as poverty, a fair tax, a just war, social security, welfare, consumer protection, the distribution of income, the minimum wage, the tobacco industry, family farms, immigration, the environment, education, and, in fact, the capitalistic system itself. These issues, and others, indeed, the list is endless, have important economic causes and consequences. The concepts to be covered are considered to be the basic principles of economics: scarcity; opportunity cost, decision making; the market system and incentives in the market system; the role of government; and the nature and causes of unemployment and inflation.

Three Learning Objectives:
Economics is the study of decision-making—the study of how to make choices and how to reach decisions. This way of thinking involves the following three objectives!

To learn and remember the economics perspective:
--there is a substitute for everything.
--every choice has costs and benefits: there’s no such thing as a free lunch!
--value is a function of

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