MICROECONOMICS
Unit 1: Introduction to Economics
I
specialisation Division
of labor
concentrate product task broken down separate tasks
1.
on a or into many
efficient in production > learn by doing
-
helps productivity
eg .
highschool teachers eg .
factory -
people specialize @ different tasks
South Africa gold diamonds
Asia textile spices
,
FACTORS of PRODUCTION
land ,
labor , enterprise capital
,
RESOURCE ENDOWMENTS
how resources are located around the world
↳ Middle East : import everything afford from oil
"
specialize @ smth the
country has
eg Venezuela
} poor but oil rich > not only endowment
.
iraq ? iran which affects
GLOBAL INEQUALITY
Northern : rich ( USA , Australia)
Hemisphere
Southern Hemisphere :
poorer ( South Africa) most
unequal economy ( economic gap)
>
OPPORTUNITY COST
Lost from choosing smth choice you make comes @ a cost
every
SUPPLY } DEMAND
RATIONAL BEHAVIOR
Traditional : calculative rational
, , objective
Behavioral : emotional , biased , unpredictable
, 1.3 Constant & Opportunity Cost
Increasing opportunity constant opportunity
✗
cost ~
cost
A
A
ROBOTS
•
•B Wheat
•
[
- - - - - - - - -
{
,
. - - - -
i - - - - -
• B
I ! q
- -
-
! ☐ ,
f
' - - •
-
i
ii. ÷ i ÷
- - -
-
÷
- - - -
- -
i
. -
- -
,
,
!
.
"
opp cost
! ! ! ! !
more
i i i •
o '
o
PIZZA corn
Robots / Pizza vastly different Wheat / Corn similar proportional
different agriculture
•
resource
•
lost=moreor1ess_ than gain lost=gain_
Curved because
you give up linear because resources are the
MORE to produce SAME so don't need to use
give significantly
•
up more more
gain gain
•
to a
proportionate whatever
you give up you
amount of another 0 uses same resource
Boils down to the variables 3 what is used to produce one
PPC changes for 3 reasons
7) Change in quality and
quantity of resources ( Q2 )
2) Technology ( prod . easier , etc)
3) Trade ( inter trade = inc
possibility of production ,
etc .
)
A ✗ A
•
2 2 2
faster computers / tech : Destruction of powerplant : High employment :
shiftout_ Shifting
less resource / resource gone
produce more goods
more
efficiently
Unit 1: Introduction to Economics
I
specialisation Division
of labor
concentrate product task broken down separate tasks
1.
on a or into many
efficient in production > learn by doing
-
helps productivity
eg .
highschool teachers eg .
factory -
people specialize @ different tasks
South Africa gold diamonds
Asia textile spices
,
FACTORS of PRODUCTION
land ,
labor , enterprise capital
,
RESOURCE ENDOWMENTS
how resources are located around the world
↳ Middle East : import everything afford from oil
"
specialize @ smth the
country has
eg Venezuela
} poor but oil rich > not only endowment
.
iraq ? iran which affects
GLOBAL INEQUALITY
Northern : rich ( USA , Australia)
Hemisphere
Southern Hemisphere :
poorer ( South Africa) most
unequal economy ( economic gap)
>
OPPORTUNITY COST
Lost from choosing smth choice you make comes @ a cost
every
SUPPLY } DEMAND
RATIONAL BEHAVIOR
Traditional : calculative rational
, , objective
Behavioral : emotional , biased , unpredictable
, 1.3 Constant & Opportunity Cost
Increasing opportunity constant opportunity
✗
cost ~
cost
A
A
ROBOTS
•
•B Wheat
•
[
- - - - - - - - -
{
,
. - - - -
i - - - - -
• B
I ! q
- -
-
! ☐ ,
f
' - - •
-
i
ii. ÷ i ÷
- - -
-
÷
- - - -
- -
i
. -
- -
,
,
!
.
"
opp cost
! ! ! ! !
more
i i i •
o '
o
PIZZA corn
Robots / Pizza vastly different Wheat / Corn similar proportional
different agriculture
•
resource
•
lost=moreor1ess_ than gain lost=gain_
Curved because
you give up linear because resources are the
MORE to produce SAME so don't need to use
give significantly
•
up more more
gain gain
•
to a
proportionate whatever
you give up you
amount of another 0 uses same resource
Boils down to the variables 3 what is used to produce one
PPC changes for 3 reasons
7) Change in quality and
quantity of resources ( Q2 )
2) Technology ( prod . easier , etc)
3) Trade ( inter trade = inc
possibility of production ,
etc .
)
A ✗ A
•
2 2 2
faster computers / tech : Destruction of powerplant : High employment :
shiftout_ Shifting
less resource / resource gone
produce more goods
more
efficiently
