Chapter 1 Preliminaries
Chapter 1 Preliminaries
Topics to be Discussed The themes of microeconomics a hat is a market? ■Rea∨ ersus nomina| Prices a Why study Microeconomics Chapter 1: Preliminaries Slide 2
Chapter 1: Preliminaries Slide 2 Topics to be Discussed ◼ The Themes of Microeconomics ◼ What Is a Market? ◼ Real Versus Nominal Prices ◼ Why Study Microeconomics?
Preliminaries a Microeconomics deals with o Behavior of individual units ◆ When Consuming How we choose what to buy Chapter 1: Preliminaries Slide 3
Chapter 1: Preliminaries Slide 3 Preliminaries ◼ Microeconomics deals with: ⚫ Behavior of individual units ◆When Consuming • How we choose what to buy
Preliminaries a Microeconomics deals with o Behavior of individual units .When Producing How we choose what to produce Chapter 1: Preliminaries Slide 4
Chapter 1: Preliminaries Slide 4 Preliminaries ◼ Microeconomics deals with: ⚫ Behavior of individual units ◆When Producing • How we choose what to produce
Preliminaries a Microeconomics deals with o Markets: The interaction of consumers and producers Chapter 1: Preliminaries Slide 5
Chapter 1: Preliminaries Slide 5 Preliminaries ◼ Microeconomics deals with: ⚫ Markets: The interaction of consumers and producers
Preliminaries a Macroeconomics deals with o Analysis of aggregate issues ◆ Economic growth Inflation ◆ Unemployment Chapter 1: Preliminaries Slide 6
Chapter 1: Preliminaries Slide 6 Preliminaries ◼ Macroeconomics deals with: ⚫ Analysis of aggregate issues: ◆Economic growth ◆Inflation ◆Unemployment
Preliminaries a The Linkage Between Micro and Macro- economIcs o Microeconomics is the foundation of macroeconomic analysis Chapter 1: Preliminaries Slide 7
Chapter 1: Preliminaries Slide 7 Preliminaries ◼ The Linkage Between Micro and Macroeconomics ⚫ Microeconomics is the foundation of macroeconomic analysis
The Themes of microeconomics a According to Mick Jagger*& the Rolling Stones ●“ You can't always get what you want "Economics degree from London School of Economics Chapter 1: Preliminaries Slide 8
Chapter 1: Preliminaries Slide 8 The Themes of Microeconomics ◼ According to Mick Jagger* & the Rolling Stones ⚫ “You can’t always get what you want” *Economics degree from London School of Economics
The Themes of microeconomics ■ Why not? ● Limited resources Chapter 1: Preliminaries Slide 9
Chapter 1: Preliminaries Slide 9 The Themes of Microeconomics ◼ Why Not? ⚫ Limited Resources
The Themes of microeconomics ■ Microeconomics o Allocation of scarce resources and Trade-offs ◆ n a planned economy ◆ n a market economy Chapter 1: Preliminaries Slide 10
Chapter 1: Preliminaries Slide 10 The Themes of Microeconomics ◼ Microeconomics ⚫ Allocation of Scarce Resources and Trade-offs ◆ In a planned economy ◆ In a market economy