principles of microeconmics 1.1

reading notes converted to questions

On a daily basis we consume an **abundance of various products** from **various places.** what are some examples of this extreme consumption?

* food items {different ingredients are made packages and produced in different places then put together and sold to you}
* cars {parts come from one place, are assembled in another and then shipped to another}
* gas { oil fracked in one place, refined in another, sold to another}
* tech {same idea with parts manufacturing and distribution}

define __**economics**__

__**economics**__ is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided

what type of *science* is economics

*social science*

list 3 reasons why you should learn about econ

* help you look at every day purchases differently
* be an informed citizen
* understand society

use the “*movie theater*” as a prompt to explain opportunity cost

when an individual looks at going to the movies not thinking about opportunity cost one would assume going to the movies *only costs the set price of the ticket*. when an individual looks at going to the movie theater from the perspective of taking into account opportunity cost they would take into consideration the *money they lost from taking off work* and the *gas money it took* to drive to the theater.

define __**opportunity cost**__

__**opportunity cost**__ is defined as the best alternative that we forgo or give up when we make a choice or decision.

what is the ***opportunity cost*** of attending college?

the ***opportunity cost*** in this case is the amount of money you could’ve made working a full time job the hours you were at school learning or doing school work.

define __**scarce**__

__**scarce**__ is defined as limited

explain ***marginalism*** using the prompt: you are going on a work trip to the same area you wanted to visit your family

I want to visit my family in NZ but my job i sending me on a work trip there. this makes the cost of seeing my family ***marginal***.

explain ***marginalism*** using the prompt: an airplane is departing half way full

a half full plane is going to depart from the airport no mater what, so selling discounted tickets for that flight is a ***marginal*** cost.

define __**marginalism**__

__**marginalism**__ is defined as the process of analyzing the additional or incremental costs or benefits arising from a choice or decision

what are 3 key reasons to study econ?

1) to learn a way of thinking

2) to understand society

3) to be an informed citizen

give an ie from your life in which understanding opportunity costs or the principle of efficient markets could make a difference in your decision

when i determine the price of window shopping at the garden state mall i would usually say 0$ but now understanding opportunity costs I would also take into consideration gas money to get there and the inevitable latte I will purchase.

how common are profit opportunities? how do you get them?

rare. be first.

define __**efficient market**__

__**efficient market**__ is defined as: a market in which profit opportunities are eliminated almost instantaneously

going to college increases your earnings by what percent?

70%

what can graduating in a recession cause?

a negative impact on your earnings

why does a recent graduates first job impact their career?

this job will effect their next few job opportunities.

economic change impacting society is most evident during what period?

the industrial revolution

what did an increase in transportation cause during the IND RVL

migration to big cities

during the 18th century there was a major change in peoples occupations. describe.

less people started working in agriculture

what did less people working in agriculture bring about?

the sudy of the economy, economists, more questions and alot of literature.

whose an example of one of the first economists?

karl marx

what did the creation of the internet change?

communication, relationships and the organization of government agebncies