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Preliminaries
Prepared by:
Fernando & Yvonn Quijano
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Microeconomics Pindyck/Rubinfeld, 7e.
CHAPTER 1 OUTLINE
Chapter 1: Preliminaries
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Microeconomics Pindyck/Rubinfeld, 7e.
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Preliminaries
Chapter 1: Preliminaries
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Microeconomics Pindyck/Rubinfeld, 7e.
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1.1
Trade-Offs
Consumers
Chapter 1: Preliminaries
Workers
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1.1
Chapter 1: Preliminaries
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1.1
Chapter 1: Preliminaries
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1.2
WHAT IS A MARKET?
Chapter 1: Preliminaries
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Microeconomics Pindyck/Rubinfeld, 7e.
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1.2
WHAT IS A MARKET?
Chapter 1: Preliminaries
market price
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1.2
WHAT IS A MARKET?
Chapter 1: Preliminaries
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Microeconomics Pindyck/Rubinfeld, 7e.
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1.2
WHAT IS A MARKET?
Chapter 1: Preliminaries
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Microeconomics Pindyck/Rubinfeld, 7e.
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1.2
WHAT IS A MARKET?
Chapter 1: Preliminaries
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1.3
nominal price
inflation.
Chapter 1: Preliminaries
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Microeconomics Pindyck/Rubinfeld, 7e.
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1.3
1980
1990
2000
2007
38.8
82.4
130.7
172.2
205.8
$0.61
$0.84
$1.01
$0.91
$1.64
College Education
$2,530
$4,912
$12,018
$20,186
$27,560
$0.61
$0.40
$0.30
$0.21
$0.31
College Education
$2,530
$2,313
$3,568
$4,548
$5,196
Chapter 1: Preliminaries
CPI1970
38.8
nominal price in 1980
$0.84 $0.40
CPI1980
82.4
38.8
CPI1970
$1.01 $0.30
nominal price in 1990
130.7
CPI1990
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Microeconomics Pindyck/Rubinfeld, 7e.
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1.3
1980
1990
2000
2007
38.8
82.4
130.7
172.2
205.8
$0.61
$0.84
$1.01
$0.91
$1.64
College Education
$2,530
$4,912
$12,018
$20,186
$27,560
$2.05
$1.33
$1.01
$0.69
$1.04
College Education
$2,530
$2,313
$3,568
$4,548
$5,196
Chapter 1: Preliminaries
CPI1990
130.7
nominal price in 1970
$0.61 $2.05
CPI1970
38.8
CPI1990
130.7
nominal price in 2007
$1.64 $1.04
CPI 2007
205.8
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1.3
1980
1990
2000
2007
38.8
82.4
130.7
172.2
205.8
$0.61
$0.84
$1.01
$0.91
$1.64
College Education
$2,530
$4,912
$12,018
$20,186
$27,560
$2.05
$1.33
$1.01
$0.69
$1.04
College Education
$2,530
$2,313
$3,568
$4,548
$5,196
Chapter 1: Preliminaries
0.49
real price in 1970
2.05
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall Microeconomics Pindyck/Rubinfeld, 7e.
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1.3
Figure 1.1
Chapter 1: Preliminaries
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1.4
Chapter 1: Preliminaries
First, Ford had to think carefully about how the public would
react to the design and performance of its new products.
Next, Ford had to be concerned with the cost of
manufacturing these cars.
Finally, Ford had to think about its relationship to the
government and the effects of regulatory policies.
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1.4
Chapter 1: Preliminaries
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