470 WORKSHOP PLAN
JANUARY 2006
DR. SHINGLETON
DESIGNED IN NEW TIMES ROMAN,
16 FONT, PORTRAIT, WITH 1.0 INCH SIDE MARGINS
ONLINE SAVED IN HTML
WORKSHOP 1. JAN17
ASSIGNMENTS
ü
REVIEW QUESTION
2-7
ü
PROBLEMS AND
EXERCISES 2-3
ü
PROBLEMS AND
EXERCISES 3-2; 3-3; 3-11
ü
EACH INDIVIDUAL
SHOULD BE PREPARED TO EXPLAIN THE ANSWER TO EACH ASSIGNMENT. THIS WILL BE PART
OF YOUR CLASSROOM PARTICIPATION GRADE.
ONLY ONE WRITTEN SET OF ANSWERS IS REQUIRED FROM EACH GROUP.
ü
THE QUIZ WILL BE
AN APPLICATION OF THE TOOLS OF SUPPLY AND DEMAND.
INTRODUCTION AND ORGANIZATION
SYLLABUS
EXAM FORMAT
OPEN NOTE/OPEN BOOK
PROBLEMS, NOT QUESTIONS
AGENDA AVAILABLE VIA E-MAIL
CHECK THE WEBSITE
QUESTIONS ANY TIME
HEARING
ORIGINS OF ECONOMIC THOUGHT
THOMAS ACQUINAS
15TH CENTURY THEOLOGIAN
JUST PRICE
FAMINES
LONG RUN VS SHORT RUN POLICIES
LESSON: SOMETIMES THERE ARE NO GOOD ALTERNATIVES
ADAM
SMITH
1776 PROTESTANT MINISTER
INVISIBLE HAND
PROFIT DRIVEN BEHAVIOR
GREATEST GOOD FOR THE GREATEST NUMBER
ALFRED MARSHALL
SUPPLY AND DEMAND
PARTIAL EQUILIBRIUM:
STUDY EACH MARKET IN ISOLATION
EQUILIBRIUM/DISEQUILIBRIUM
ADJUSTMENT PROCESS IS MOST IMPORTANT
ECONOMICS HAS ITS OWN
LANGUAGE
COST VS PRICE
MARGINAL
MARGINAL CONSUMER
RELATION BETWEEN AVERAGE AND MARGINAL
G.P.A.
SALES PER WORKER
MARGINALISM:
WATCH FOR THE CHANGES
MICROECONOMICS: STUDY OF INDIVIDUAL CHOICES
RATIONAL
CHOICES
CASE STUDY: BECKER'S
ANALYSIS OF CRIMINAL BEHAVIOR
MODELS
USE OF GRAPHS
INDEPENDENT VARIABLE
DEPENDENT VARIABLE
ASSUMPTIONS
CONCLUSIONS
HYPOTHESIS
HYPOTHESIS TESTING
CORRELATION
VS CAUSATION
CASE STUDY: SUNSPOT THEORY
CASE STUDY: SUPERBOWL THEORY
28-3, THEN 2-6
PRODUCTION POSSIBILITIES
MODEL
FACTOR OF PRODUCTION
EFFICIENCY
ATTAINABLE
UNATTAINABLE
CASE STUDY: SALT I
SOVIET TELEVISIONS
GROWTH
EFFECTS
OF INVESTMENT IN CAPITAL GOODS
LAST MORE THAN ONE TIME PERIOD
REPRODUCIBLE
MOVE
THE FRONTIER
INCREASE FUTURE CHOICES
SAVING
CASE
STUDY: LUTHERAN WORLD RELIEF
TRADE
PRODUCTION CHOICES
CONSUMPTION CHOICES
REALLOCATION OF RESOUCES
LONG RUN THEORY AND SHORT RUN FACTS
P52:
PROBLEMS AND EXERCISES 2-3
SUPPLY AND DEMAND I 3
(THIS IS THE IMPORTANT STUFF!)
MARKET ALLOCATION / PRICE
RATIONING/ VOLUNTARY EXCHANGE
CASE STUDY: OREO COOKIES
ALTERNATIVES
P52: REVIEW QUESTION 2-7
CASE STUDY: POLISH APPLIANCES
ROLE OF PROFIT
NORMAL PROFIT
ECONOMIC PROFIT
CASE STUDY: WHO GETS THE PROFITS?
CASE STUDY: IS IT WORTH $3.00 PER PILL?
COMPETITIVE MARKETS
MANY BUYERS
MANY SELLERS
EACH REACTS TO THE PRICE
DEMAND
IDENTIFIES QUANTITY DEMANDED AT EACH PRICE
DEMAND VS QUANTITY DEMANDED
QUANTITY DEMANDED
MUST BE A NUMBER
MUST FIRST KNOW THE PRICE
LAW OF DEMAND
WHY IS IT IMPORTANT TO A FIRM?
SUPPLY
IDENTIFIES QUANTITY SUPPLIED AT EACH PRICE
SUPPLY VS QUANTITY SUPPLIED
QUANTITY SUPPLIED
MUST BE A
NUMBER
MUST FIRST KNOW THE PRICE
LAW OF SUPPLY
SHIFTS CAUSED BY CHANGES IN
NUMBER OF FIRMS
COST
LAW OF MARKETS
DEMAND CURVE
SUPPLY CURVE
AT ANY MOMENT IN TIME
3 KINDS OF PRICES
DISEQUILIBRIUM PRICES
INVENTORY CHANGES AS SIGNALS
NO INTENTIONAL MISTAKES
EQUILIBRIUM PRICE
EXAMPLE 8 P80
MARKET ADJUSTMENTS
CHANGE IN DEMAND
CHANGE IN SUPPLY
CHANGE IN BOTH
PG90 PROBLEMS AND EXERCISES 3-2; 3-3
PRICE LIMITS/PRICE CONTROLS
CEILING/MAXIMUM PRICES
EXAMPLE: RENT CONTROL IN
COMPARE Q TO FREE MARKET
IDENTIFY WINNERS AND LOSERS
HOMELESS PROBLEM
DISCRIMINATION
PG91 PROBLEMS AND EXERCISES 3-11
FLOOR/MINIMUM PRICES
EXAMPLE: MINIMUM WAGES
COMPARE Q TO FREE MARKET
IDENTIFY WINNERS AND LOSERS
UNEMPLOYMENT PROBLEM
DISCRIMINATION
DOES SOCIETY GAIN?
BENEFITS
EXAMPLES/AS TIME ALLOWS
ELASTICITY
DEFINITION
ELASTIC VS INELASTIC
PERCENTAGE
CHANGE CALCULATION/SPREADSHEET METHOD
CHANGE DIVIDED BY OLD
ELASTICITY
CALCULATION
PCT CHANGE OF EFFECT
DIVIED BY
PERCENTAGE CHANGE IN CAUSE
EXAMPLE:
CAUSES QUANTITY TO FALL FROM 300 TO 270 TONS
PCT CHANGE IN Q = [(30/300)*100]-100 = 10PCT
PCT CHANGE IN P =[(.60/2.00)*100]-100=
30PCT
ELASTICITY OF DEMAND = 10/30 = .33
FIRST QUIZ
GIVE COMPLETE ANSWERS
MAXIMUM 2 PAGES