Professional Documents
Culture Documents
LECTURE ONE
About me
Office: AB 145
Module Details
All module materials are available in Moodle. Ten lectures plus one revision lecture. We have a two hour time slot for the content lectures but
Assessment:100% by examination.
You must pass the exam!
universities.
This presents us with both challenges and opportunities. For you the challenge is to try to manage the transition to
What to expect?
This is essentially a British style university. Faculty are not here to simply give you answers to your
questions.
You can consult with them but they will provoke you to
Independent Learning
Students assume responsibility and do not rely
Expectations of you
Seminars will be student-centred activities. They are not
mini lectures!
You will work in small groups and answer questions
Expectations of you
How to prepare for your seminars? Print out and review the seminar guides. Review the lecture slides. Read the relevant sections of your textbook. Check your understanding by attempting the review questions from the textbook. Work together in small study groups.
Get involved. It can be fun and youll learn more. Do not expect the tutor to just give you answers!
point is to raise questions in the seminar so that everyone can have equal access to learning.
Model answers will NOT be available beyond what is
Textbook
We are following a programme of study and we are NOT
textbook.
Lecture Topics
1.Introduction to Fundamental Concepts of Economics 2. Economic Method, Assumptions and Models
Lecture Topics
7. The Costs of Production 8. Types of firms and market structures
Seminar Topics
Seminar One: Introductory Concepts Seminar Two: Production Possibilities Frontiers and Positive
Production
Seminar Five: Market Structures and Exam Practice
Seminar Details
Seminar Details are in the Module Outline and the
Think about
Why cant we have everything we want? There are limited or scarce resources in a society. Scarcity refers to the limited nature of societys resources. Scarcity means we all have to make choices. Governments, businesses and people face a situation of
scarce resources and unlimited wants. How should we solve this fundamental economic question?
effectively.
We consider options and alternatives and make choices.
how the economy as a whole works (e.g. a society decides how to divide its resources between national defense, consumer goods, protecting the environment, and other needs)
another.
e.g. Playing computer games or chatting online
vs. less time for study. You cant do both at the same time
comparing the costs and benefits of alternative choices. The opportunity cost of any item is whatever must be given up to obtain it. It can guide your decision making.
e.g. the opportunity cost of time spent at KTV= the
Opportunity Cost
There is a well-known saying in economics that there is
no such thing as a free lunch! This means that, even if we are not asked to pay money for something, scarce resources are used up in the production of it and there is an opportunity cost involved. Opportunity cost measures the cost of any choice in terms of the next best alternative foregone. For example: Making use of scarce farming land: The opportunity cost of using farmland to grow wheat for bio-fuel means that there is less land for food production.
Rationality
weigh the marginal benefit one receives from an option with its marginal cost, including the opportunity cost. That is, rational people think at the margin. Marginal changes means small incremental changes/adjustments of an action. Rational people often make decisions by comparing the benefits and costs of marginal changes. Rational people systematically and purposefully do the best they can to achieve their objectives.
of apples increase.
e.g. In response to higher prices of petrol,
explain why people make apparently irrational decisions such as why people do things that do not appear to be in a persons self-interest. The mainstream economic view is that people are infinitely rational and emotionless beings who can do cost-benefit analyses at will. The reality is often very different. Most of us are not infinitely rational, but rather face bounded rationality, with people using intuition instead of calculating optimal solutions to every decision.
producing what we do best and exchange it for other goods. Countries can benefit from trade & specialization:
Sell the goods they produce at a better price
abroad. Buy other goods more cheaply from abroad than could be produced at home.
Water Scarcity
It is easy to take this basic building block of life for granted.
drying up.
The world population is projected to reach nine billion by 2050.
Not only will these people need water to drink and bathe with also a massive amount of water must be used to grow additional food.
Water Scarcity
The most rapid growth will be in developing nations,
stress is expected to rise to 3.9 billion, nearly half of the world population.
Water Scarcity
How Does Your Country Utilize Water?
modernizing their agriculture techniques, they can produce more food and have more water left over to meet other needs.
Water Scarcity
China uses about 60% of its water on agriculture, about
about 65 % of the water is used on industry and about 30 % of the water is used on domestic uses.
http://news.bbc.co.uk/2/hi/uk_news/8628887.stm
The amount of water used in making goods imported to
the UK is worsening water shortages in the developing world, according to a report from three engineering institutions.
They say the government has a duty to make water use
one litre of orange juice (850 litres) A meat and dairy-based diet consumes about 5,000 litres of virtual water a day while a vegetarian diet uses about 2,000 litres
pocket requires half a litre of water to charge. That may not seem like much, but with over 80 million active iPhones in the world, thats 40 million litres to charge those alone.
now took 1,514 litres of water to produce, and your jeans required an extra 6,813 litres. Bottled Water Footprint: The US, Mexico and China lead the world in bottled water consumption, with people in the US drinking an average of 200 bottles of water per person each year. Over 17 million barrels of oil are needed to manufacture those water bottles, 86% of which will never be recycled.
Summary
Economics is the study of how society manages its
Summary
The principles of economic interaction are:
Trade can make everyone better off. Markets are usually a good way to organize economic activity.
any of the material in the summary is not clear to you then find it in the main text. Turn to page 16 and review the Key Concepts relevant to the lecture. Attempt Questions for Review where you need to improve your understanding.