...UB18416BBU26251 INTRODUCTION TO MICROECONOMICS A Final Thesis Presented to AIU The Academic Department Of the School of Business and Economics In Partial Fulfillment of the Requirements For the Bachelors Degree in Business Administration Atlantic International University (AIU) @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ @@ INTRODUCTION TO MICROECONOMICS @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ @ Emmanuel Kasozi Atlantic International University (AIU) – School of Business and Economics August 15, 2012 School work, Micro economics @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ Atlantic International University (AIU) CONTENTS 1 1.0. Microeconomics and Business Markets an overview 2.0. Economics is defined 3.0. Opportunity cost 4.0. 3 Production curve 2 5.0. Microeconomics is defined 6.0. Business Markets 7.0. Market 8.0. 8 Assumptions of markets 3 Demand, Supply and market Equilibrium 9.0. 10 Demand 10.0. Factors influencing Demand 11.0. Demand curve 12.0. Ceteris Paribus 4 13.0. Supply 14 14.0. The law of supply 15.0. Supply schedule 16.0. Supply curve 17.0. Factors influencing supply Atlantic International University (AIU) 18.0. Equilibrium 19.0. Reference 21 MICROECONOMICS AND BUSINESS MARKETS ...
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...Concepts of Microeconomics ECON220-1203D-01 Microeconomics Concepts of Microeconomics Introduction In this paper I will explore the concepts of microeconomics. As well as define the opportunity cost for both Michelle’s and James’ in relation to producing potatoes and chickens. And I will explore based upon opportunity cost the absolute advantage in producing potatoes and chickens. Opportunity cost of producing potatoes Michelle 200 Potatoes= 50 Chickens~ 1 Potato= 1/200*50=0.25 Chickens Michelle’s opportunity cost of producing potatoes is 0.25(1/4) chickens. James 80 Potatoes= 40 Chickens~1 Potato=1/80*40=0.5 Chickens James’ opportunity cost of producing potatoes is 0.5 (1/2) chickens. Opportunity cost of producing chickens Michelle 50 Chickens=200 Potatoes~1 Chicken= 1/50*200= 4 Potatoes Michelle’s opportunity cost of producing Chickens is 4 Potatoes. James 40 Chickens= 80 Potatoes~1 Chicken=1/40*80= 2 Potatoes James’ opportunity cost of producing Chickens is 2 Potatoes. Absolute Advantage In this scenario, Michelle has the absolute advantage due to the fact that Michelle can produce more potatoes and chickens than James can produce. Comparative Advantage for Potatoes Michelle, 200 Potatoes =50 Chickens~200/200P=50/200C~1P=0.25C (1/4C) James, 80 Potatoes=40 Chickens~80/80P=40/80C~1P=0.5C (1/2C) In the instance of Potatoes, since Michelle has a lower opportunity cost to produce potatoes...
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... G. OKEOWO INTRODUCTION It is not easy to say in a sentence what the subject, ‘micro economic’ means without explaining the meaning of economic. Economic can be looked at from various angles and hence each scholars can give their own definition of the subject. It is a social science, and social science is the studies of the behaviors of human being unlike other social science such as philosophy, sociology, political science, anthropology etc. There are many definition of economics, the earliest definition were usually in term of wealth such as the one by Adam Smith who defined economic as: an inquiry into the nature and causes of wealth of the nation. Later on J.S Mill defined economics as the practical science of production and distribution of wealth. Davenport defined economics as the practical science that treats phenomena from the stand point of price. Prof. pigou in his own definition describes the subject as having a lot to do with welfare while Alfred marshal defined economics as a study of mankind in the ordinary business life. Lord Lionel C. Robbins defined economics as ‘the science which studies human behaviors as a relationship between ends and scarce means which have alternative uses’. It can therefore be safely said that economic is the study of production, distribution, exchange and consumption of goods. And is the study of how society decides what, how and for whom to produce. Economic is divided into two main branches: microeconomic and macroeconomic....
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...COURSE: ECO1203 ECONOMICS 1 (4 cr) ECO1207 MICROECONOMICS (4cr) PREREQUISITE(S): None COURSE DESCRIPTION: This course is designed to enhance the students’ understanding of basic microeconomic concepts and theories in order to equip them with the basic conceptual abilities and skills in economic problem solving. The theories will include the basic economic problem, supply and demand analysis, consumer behaviour, market structure, production and cost and market failure. LEARNING OBJECTIVES: The aims of this course are to enable students to: Apply basic theoretical microeconomic models as a framework for understanding the real world problems. Establish the ability to communicate ideas pertaining to the basic microeconomic concepts, theories and events effectively, both verbally and in writing. LEARNING OUTCOMES: Successful students will be able to: Explain the core economic problems such as the scarcities and choices. Explain how economic problems can be reduced by improving the use of available resources and by using the concept of opportunity cost. Explain how equilibrium prices and goods are determined by using demand and supply curves analysis. Explain the behavior of individual firms towards maximizing profits (minimizing costs) in a perfectly competitive or monopoly market in determining the optimal production of goods and services and optimal price level. Calculate the necessary production costs to determine the profit maximizing output for different...
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...BINDURA UNIVERSITY OF SCIENCE EDUCATION FACULTY OF COMMERCE DEPARTMENT OF ECONOMICS COURSE OUTLINE FOR ECONOMIC PRINCIPLES1 – EC101 Lecturers : A.Chingarande (0776326638), F. Tafirei (0772757491) & M. Mzumara (0712737723) Emails : achingarande@buse.ac.zw, ftafirei@buse.ac.zw & mmzumara@buse.ac.zw Consulting Times: Tuesdays and Thursdays 0900 Hrs – 1100Hrs or by appointment Venue : Office No H8 (Clinic Office) Main Campus Course Aims: Provide a basis of factual knowledge of economics; Encourage the student to develop: a facility for self-expression, not only in writing but also in using additional aids, such as statistics and diagrams, where appropriate; the habit of using works of reference as sources of data specific to economics; the habit of reading critically to gain information about the changing economy we live in; and an appreciation of the methods of study used by the economist, and of the most effective ways economic data may be analysed, correlated, discussed and presented. Course Objectives: Demonstrate knowledge and understanding of the specified content; Interpret economic information presented in verbal, numerical or graphical form; Explain and analyse economic issues and arguments, using relevant economic concepts, theories and information; Evaluate economic information, arguments, proposals and policies, taking into consideration relevant information and theory, and distinguishing facts from hypothetical statements and value...
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...Introduction to key ideas - Chapter 1 Economics is a social science; it analyzes human interactions in a scientific manner. Economics is the study of human behaviour. Since it uses scientific methods it is called a social science. Economics, at its best, is a set of ideas and methods for the improvement of society. Much of today’s developed world faces severe challenges as a result of the financial crisis that began in 2008. Macroeconomics studies the economy as system in which feedbacks among sectors determine national output, employment and prices Individual behaviours are motivated by self- interest, others are socially motivated. Microeconomics is the study of individual behaviour in the context of scarcity A critical element in making choices is that there exists a scarcity of time, or income or productive resources. Microeconomics also concerns business choices. The individual business operator or firm has to decide what to produce, how to produce it, how to sell it and in many cases, how to price it. A business fails if it cannot cover its costs. The interactions and feed backs in the economic system create a ‘paradox of thrift.’ In a mixed economy goods and services are supplied both by private suppliers and government. Markets offer the choice of a wide range of goods and services at various prices and individuals use their incomes to decide the pattern that the market price cover costs and yield a profit depending on their shopping patterns. Much...
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...Analyzing Supply and Demand The production possibilities curve displays the different combinations of two goods or services that can be produced in a full production economy with full employment, with the availability of fixed resources and fixed technology. It is a production frontier due to its display of the limit of attainable outputs (Rittenberg & Tregarthen, 2008, p. 52). The law of increasing opportunity costs states that as production of goods increase, the opportunity cost of producing another item also increases. Because many resources are not adaptable to other uses, one resource may be helpful in producing butter, but not be useable in the production of guns. According to the law of demand, with an increase in price comes a decrease in the quantity demanded as long as there are no other changes (Rittenberg & Tregarthen, 2008, p. 59). In analyzing supply and demand, it is also important to analyze how the changes will impact equilibrium price and equilibrium quantity in a competitive market. Analyzing whether supply and demand increases, decreases or remains constant can help determine whether market equilibrium price and quantity will increase, decrease or be indeterminate (Gwartney, Stroup, & Studenmund, 2015). Problem A Type of Production Production Alternative A Production Alternative B Production Alternative C Production Alternative D Production Alternative E Butter 0 1 2 3 4 Guns 15 14 12 9 0 The specific assumptions that underlie the...
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...Twitter:@ohyouguy COURSE OBJECTIVES May I, on behalf on Economics Department, take this opportunity to most cordially welcome you to ECON 100. ECON 100 is a course that is specifically tailored for students not taking Economics as a subject. The course will run for 15 weeks, with Continuous Assessment Tests (CATs) being sat for on the sixth and tenth weeks of the course duration. The CATs shall comprise 30% of the final marks-20 through Class quizzes and 10 through reading assignments. The method of delivery shall mainly be through the Lecture method. Reading assignments questions shall be given on a fortnightly basis. At the end of the course, the student is expected to: i. Define and appreciate the rationale of opportunity cost as used in economics. ii. Appreciate the rationale of economics in his/her chosen field of study. iii. Understand the importance of price as a tool of resource allocation in a free market system. COURSE OUTLINE Week 1 Lesson 1-3 Topic Introduction Sub-topics Remarks Definition, branches of economics, economic methodology, Central Economic Problem, Production Possibility Frontiers, Elements of Economic Activities Definitions of a market Definition of price The principles of demand and supply Elasticity of demand Factors affecting elasticity of demand Elasticity of supply Price determination 2 3 4 5 6 4-18 Price Theory 7 8 19-22 CAT 1 Theory of the Firm Cost and Profit Costs in the short-run and long-run Total average and marginal product. Stages of Production...
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...ONLINE SUBMISSION ASSIGNMENT COVER PAGE | Name: Anthony Radici Student number: S00110027 Tutorial time room: Monday 5pm. Room C3-07 Date: Friday the 2nd of May 2014 Course: Bachelor of Commerce Subject: Principles of Economics Instructor: Dr Jason koh “ An analysis of the key macro and micro economics factors which impact on the current Australian housing market” Introduction This paper explores the current situation of the Australian housing market. This paper will place a major focus on how macro and microeconomics impact the housing market in Australia. The paper starts off with the Australian economy and the housing market at the moment. The next section is the major part of this essay as it focuses on the macroeconomics factors, which have formed the housing market. The following section briefly explores the microeconomics factors, which have formed the housing market. And finally the last section of this paper ended by a conclusion. Australia and the housing market Throughout the years we have seen a massive change in prices when buying a house in Australia, this is due to many different factors, which have had a big impact on the economy itself. One of the main reasons why prices have been going up is because of the population growth. As we know as the demand increases, price also increases. Recently we have seen a change in people willing to buy a house, they are mostly aged between 22 to 42 years old and in most cases, they can...
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...Introduction: Economics has become an increasingly significant part of contemporary life. Regardless of the daily expenditure of our life or the allocation of the social wealth, all this affairs related can be explained by the economics and the functions of economics are playing the essential role. The essay is aimed to define the economics and discuss how we can use economics in our future career or daily life. What is economics Professor Israel Kirzner in The Economic Point of View points out that even among professional economists, there are ‘a series of formulations of the economic point of view that are astounding in their variety’. Many people feel that they are generally familiar with economics. However, if what the economics is asked, people will find that it is difficult to define the subject. After all, economics is more than money. As Mankiw mentioned in his book, economics is a study of mankind in the ordinary business of life, it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being. More generally, economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses, and scarcity refers to the limited nature of society’s resources. That is to say, economists not only study the consumption determination and investment portfolio, but also pay attention to the results that led by the consumption...
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...EcoNomIcs mIcroEcoNomIcs macroEcoNomIcs Course Description Effective Fall 2012 AP Course Descriptions are updated regularly. Please visit AP Central® (apcentral.collegeboard.org) to determine whether a more recent Course Description PDF is available. The College Board The College Board is a mission-driven not-for-profit organization that connects students to college success and opportunity. Founded in 1900, the College Board was created to expand access to higher education. Today, the membership association is made up of more than 5,900 of the world’s leading educational institutions and is dedicated to promoting excellence and equity in education. Each year, the College Board helps more than seven million students prepare for a successful transition to college through programs and services in college readiness and college success — including the SAT® and the Advanced Placement Program®. The organization also serves the education community through research and advocacy on behalf of students, educators, and schools. For further information, visit www.collegeboard.org. AP Equity and Access Policy The College Board strongly encourages educators to make equitable access a guiding principle for their AP programs by giving all willing and academically prepared students the opportunity to participate in AP. We encourage the elimination of barriers that restrict access to AP for students from ethnic, racial, and socioeconomic groups that have been traditionally underserved. Schools...
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...AFRICA NAZARENE UNIVERSITY NAME: IAN GATHAIYA MUHORO ID NO: 08JBT021 UNIT: MICROECONOMICS UNIT CODE: BCM 104 LECTURER: PETER MUHIA TOPIC: ANALYSIS OF THE FACTORS OF PRODUCTION DUE DATE: 14TH JUNE 2012 PRODUCTION INTRODUCTION According to David N Hyman, (1989), production is the process of using economic resources or inputs in order to produce output. The transformation of raw materials into finished goods or services has been a major factor in any economy as this is the major attributes that has help build today’s economy since the beginning of most economies worldwide. Production on its own is insignificant as there are several factors to consider when producing the end product. This is what is known as the factors of production. FACTORS OF PRODUCTION There are several factors of production to consider. They are; a) Capital b) Scarcity c) Technology d) Cost of production e) Opportunity cost f) Fixed cost and variable costs g) Production possibilities h) Resources i) Price The above factors each affect production in their own way. A deeper look into them will reveal each of these factors’ contribution to the production process. A. Capital Capital, according to Ronald M and Robert A, (2003), this is anything that is produced in order to increase productivity in the future. Along with human capital, there is physical capital, which includes buildings, machinery and other equipment. Capital can also be monetary which is required to boost production...
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...(Micro Economics-I) SECTION – I Module 1 : Introduction Meaning, nature, scope, significance and limitations of micro economics. Ceteris Paribus – use and significance. Concept and types of equilibrium : stable, unstable, static and dynamic equilibrium – partial equilibrium and general equilibrium, positive economics and normative economics, managerial economics. Basic concepts – wealth, welfare and scarcity. Basic tools of economics analysis (equations and functions, graphs and diagrams, slope and intercepts) Module 2 : Consumers Behaviour and Demand Marishallian Approach : Equi-marginal utility, Law of demand – Determinants of demand. Elasticity of demand and its measurement. Price – Income – Cross and Promotional elasticity of demand. Consumer’s Surplus. Hicksian Approach : Indifference curves – properties of Indifference Curve, Consumer’s Equilibrium, Price effect, Income effect and substitution effect – Derivation of demand from Price Consumption Curve (PCC) – Giffen’s paradox. Samuelson Approach : Revealed Preference Theory. Module 3 : Production and Cost Analysis Concept of production function : short run and long run – Cobb – Douglass production function. isoquants – iso-cost line – producer’s equilibrium. Law of variable proportion and Law of returns to scale – Economies of scale – Economies of scope. Concepts of costs : Money and real cost, Opportunity cost, Social cost, Private cost – Derivation of short run and long run cost curves– Learning curve. SECTION –II Module...
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...UNIVERSITY OF TECHNOLOGY, JAMAICA SCHOOL OF BUSINESS ADMINSTRATION ECO 1001: INTRODUCTION TO MICROECONOMICS TUTORIAL #1 1. Which of the following is the best definition of economics? a) The study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided. b) The study of how consumers spend their income. c) The study of how business firms decide what inputs to hire and what outputs to produce. d) The study of how the Jamaican government allocates tax dollars. 2. Competitive behaviour a) occurs as a reaction to scarcity. b) occurs only in a market system. c) occurs only when the government allocates goods and services. d) always generates waste. 3. Which of the following can be classified as microeconomics or macroeconomics? Why? a) Research into why the growth rate of total production (in Barbados) increased during the1990s. b) A theory of how consumers decide what to buy. c) An analysis of IBM’s share of the personal computer market in Jamaica. d) Research on why interest rates were unusually high in the late 1970s and early 1980s. 4. Discuss whether each statement is an example of positive economics or normative economics or if it contains elements of both positive and normative economics: a) An increase in interest rates will lower the growth rate of the Jamaican economy. b) The 1990s was...
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...Regular Assignment 1 Module: The Business Environment Tutor: Steve Tidball Submission Date: 19th September 2013 Confidentiality: I have read, understand and adhere to the KOL Confidentiality Policy. Click here to access the KOL Confidentiality Policy. Academic Integrity Statement: I have read and understood the Academic Integrity guidelines for Kaplan Open Learning and the University Of Essex, and declare that this assignment conforms to all of the rules and regulations contained therein. Please note: the guidelines can be found in the Student Handbook (see section 6.4). Regular assignment one Introduction In this assignment, the explanation of the macroeconomic and microeconomic environment will be happen with the aid of examples. Once this has been completed, a critical analysis of how the economic environment in recent years has affected Hampshire fire and rescue service will be made. Main Body The Macroeconomic environment The Macroeconomic environment is an examination of the economy. The macroeconomic environment is an important one because the analysis compiled enables a business to investigate an economy and see what trends are occurring. For instance, if the economy has grown since the last analysis or shrunk. The difference between the increase and decrease of the economy is important because the retailer has no control over how the economy grows or shrinks. There are also certain influences which will affect the macroeconomics; these are...
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