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Questions and Answers
This course is a first glance in the economic way of ______ and working.
This course is a first glance in the economic way of ______ and working.
thinking
One of the main objectives of the course is to develop an economic way of ______.
One of the main objectives of the course is to develop an economic way of ______.
thinking
The concepts of demand and ______ are introduced in this course.
The concepts of demand and ______ are introduced in this course.
supply
Students are expected to apply graphical ______ on economic issues.
Students are expected to apply graphical ______ on economic issues.
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After the course, students should identify how equilibrium price is determined through the interaction of supply and ______.
After the course, students should identify how equilibrium price is determined through the interaction of supply and ______.
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Scarcity refers to our inability to satisfy all our ______.
Scarcity refers to our inability to satisfy all our ______.
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The lecture notes and required textbook can help ______ the learning process.
The lecture notes and required textbook can help ______ the learning process.
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The quality of labour depends on human capital, which is the knowledge and skills obtained from ______, on-the-job training, and work experience.
The quality of labour depends on human capital, which is the knowledge and skills obtained from ______, on-the-job training, and work experience.
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The human resource that organizes land, labour, and capital is ______.
The human resource that organizes land, labour, and capital is ______.
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A ______ is a significant decline in economic activity spread across the economy.
A ______ is a significant decline in economic activity spread across the economy.
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A business cycle describes the fluctuations in an economy over a ______.
A business cycle describes the fluctuations in an economy over a ______.
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Ford Motor Company produces cars in several countries and sells them in many more ______.
Ford Motor Company produces cars in several countries and sells them in many more ______.
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Who gets the goods and services depends on the ______ that people earn.
Who gets the goods and services depends on the ______ that people earn.
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The economic way of thinking places scarcity and its implication, choice, at ______ stage.
The economic way of thinking places scarcity and its implication, choice, at ______ stage.
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Trade-offs arise when people choose how to spend their ______.
Trade-offs arise when people choose how to spend their ______.
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The questions what, how, and for whom become sharper when we think in terms of ______.
The questions what, how, and for whom become sharper when we think in terms of ______.
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Economists observe and measure economic activity, keeping track of quantities of ______.
Economists observe and measure economic activity, keeping track of quantities of ______.
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An economic model is a description of some aspect of the economic world that includes only those features of the world that are needed for the ______ at hand.
An economic model is a description of some aspect of the economic world that includes only those features of the world that are needed for the ______ at hand.
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We test models to reject those that don’t fit the ______ and identify the ones that do fit the facts.
We test models to reject those that don’t fit the ______ and identify the ones that do fit the facts.
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The fallacy of composition claims that what is true for the parts is true for the ______.
The fallacy of composition claims that what is true for the parts is true for the ______.
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Economists use the logical device called ______ to isolate the effect of interest.
Economists use the logical device called ______ to isolate the effect of interest.
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The post hoc fallacy means 'after this, therefore because of ______'.
The post hoc fallacy means 'after this, therefore because of ______'.
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Economists try to isolate cause-and-effect relationships by changing only one ______ at a time.
Economists try to isolate cause-and-effect relationships by changing only one ______ at a time.
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An economic ______ is a generalization that summarizes what we think we understand about economic choices.
An economic ______ is a generalization that summarizes what we think we understand about economic choices.
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Two common fallacies that economists try to avoid are the fallacy of composition and the ______ fallacy.
Two common fallacies that economists try to avoid are the fallacy of composition and the ______ fallacy.
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Economists cannot easily do ______, which makes studying economic behavior challenging.
Economists cannot easily do ______, which makes studying economic behavior challenging.
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The x-coordinate of a point tells us how far from the origin the point is on the ______ axis.
The x-coordinate of a point tells us how far from the origin the point is on the ______ axis.
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The y-coordinate of a point indicates how far from the origin it is on the ______ axis.
The y-coordinate of a point indicates how far from the origin it is on the ______ axis.
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In ordered pair notation, points are represented in the form of (x, ______).
In ordered pair notation, points are represented in the form of (x, ______).
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A time-series graph measures time along the x-axis and the variable of interest along the ______ axis.
A time-series graph measures time along the x-axis and the variable of interest along the ______ axis.
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When a point lies on an axis, one of its coordinates must be ______.
When a point lies on an axis, one of its coordinates must be ______.
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Scarcity is a situation in which _______.
Scarcity is a situation in which _______.
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People who sell the services of the factor of production _____ earn an income called ______.
People who sell the services of the factor of production _____ earn an income called ______.
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The choices that you make are _______.
The choices that you make are _______.
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When the government increases taxes and spends the extra revenue on airport security, its choice involves______.
When the government increases taxes and spends the extra revenue on airport security, its choice involves______.
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Last month, you played tennis once. This month, you play twice. So, this month, your ____.
Last month, you played tennis once. This month, you play twice. So, this month, your ____.
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Scarcity leads to _______ in resource allocation.
Scarcity leads to _______ in resource allocation.
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In economics, _______ refers to the next best alternative that is given up when making a choice.
In economics, _______ refers to the next best alternative that is given up when making a choice.
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The factor of production that earns _____ is capital.
The factor of production that earns _____ is capital.
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Economic decisions can often be analyzed through the lens of _______ costs and benefits.
Economic decisions can often be analyzed through the lens of _______ costs and benefits.
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A choice made in the _______ interest may not always serve individual needs.
A choice made in the _______ interest may not always serve individual needs.
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Study Notes
Course Information
- Course Title: Principles of Microeconomics
- Course Code: ECN-261
- Lecturer: Dr Afroditi Kero
- Email: [email protected]
- Office Hours: At the end of the lecture and by appointment
Course Description
- The course provides a foundational understanding of economic principles and how the economic system functions.
- Students will learn key economic concepts and theories.
- Qualitative and quantitative skills will be developed.
Course Objectives
- Develop an economic way of thinking.
- Introduce graphical analysis.
- Introduce the concepts of demand and supply.
- Introduce decision-making processes related to optimal output levels.
- Identify and differentiate various market structures.
Learning Outcomes
- Apply graphical analysis to economic issues.
- Identify how equilibrium price is determined in a free market.
- Demonstrate the concepts of demand and supply analysis relevant to the business environment.
- Analyze market examples and applications to simulate realistic business experiences.
- Discuss income distribution and resource allocation dynamics.
Course Content
- Introduction to Economics
- Scarcity, Choice, and Opportunity Cost
- Demand and Supply
- Elasticity
- Demand and Supply Applications
- Consumer Choice
- Output and Costs
- Perfect Competition
- Monopoly
- Monopolistic Competition and Oligopoly
Assessment Methods
- Final Examination (40 multiple-choice questions): 50%
- Midterm Examination (30 multiple-choice questions): 40%
- Participation: 10%
- Attendance is mandatory.
Chapter 1: What is Economics?
- Definition of Economics: The social science studying choices made by individuals, businesses, and governments as they deal with scarcity.
- Scarcity: The inability to satisfy all wants, due to limited resources.
- Economic Questions/Concerns: Understanding (1) what, how, and for whom goods and services are produced, and (2) when self-interest aligns with social interest.
Chapter 1: Economic Questions (What, How, When, Where, For Whom?)
- What: What goods and services are produced? Technological advancements and societal desires influence production.
- How: How are goods and services produced? This involves utilizing productive resources (factors of production): Land (natural resources), Labour (human effort), Capital (tools, machinery), Entrepreneurship (organizing the other three).
- When: When are goods and services produced and when are they consumed? The timing of production can impact the economy; economic downturns like recessions represent significant declines and fluctuations in economic activity over time.
- Where: Where are the goods and services produced? Global production patterns have changed location preferences.
- For Whom: Who gets the goods and services? People earn income from the sale of the services of the factors of production.
Economic Questions: Further Details
- Factors of Production: Land, Labor, Capital, Entrepreneurship
- The analysis can cover discussions about production and recessionary periods.
Chapter 1: The Economic Way of Thinking
- Choices and Trade-offs: Every choice involves a trade-off—giving up one thing to get something else.
- Opportunity Cost: The highest-valued alternative sacrificed when making a choice.
- Rational Behavior: Making decisions by evaluating costs and benefits at the margin (small changes in resource use).
- Human Nature, Incentives, and Institutions: Economists assume rational self-interest motivation, but institutions can guide choices towards the social interest (e.g., property rights).
Chapter 1: Positive vs. Normative Statements
- Positive Statements: Describe the world as it is, testable.
- Normative Statements: Prescribe how the world should be, based on values, not testable.
Chapter 1: Appendix (Understanding Graphs):
- Graphs are visual representations of relationships between variables.
- The x-axis (horizontal) represents one variable while the y-axis (vertical) represents the other.
- The point where the axes intersect is the origin (0,0).
- The graph’s slope measures the rate at which one variable changes in response to the other. Positive slope indicates that an increase in one variable leads to an increase in the other. A negative slope indicates that an increase in one variable leads to a decrease in the other.
- The y-axis intercept is the value of the Y-variable when the X-variable is zero.
Additional Information
- Textbook: Parkin, M., et. al. (2021). Economics. Pearson
- Additional book sources are accessible online through the university library.
- Lecture notes are also available
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Description
This quiz assesses your understanding of the fundamental concepts in economics, including demand, supply, scarcity, and the business cycle. You will apply graphical analysis to economic issues and explore the determinants of equilibrium price. Perfect for students looking to solidify their knowledge in introductory economics.
