Podcast
Questions and Answers
What does the concept of trade-offs imply about decision-making?
What does the concept of trade-offs imply about decision-making?
- Choosing one option means giving up another. (correct)
- Trade-offs only apply in economic contexts.
- Trade-offs are unique to each individual.
- People can have everything they want without sacrifices.
How are market outcomes typically organized?
How are market outcomes typically organized?
- Markets generally ensure efficient economic activity. (correct)
- Through communal decision-making.
- By private companies only.
- Through government intervention.
What is a common effect of excessive government money printing?
What is a common effect of excessive government money printing?
- Lower interest rates.
- Increased economic stability.
- Enhanced governmental authority.
- Rising prices leading to inflation. (correct)
What can a country’s standard of living depend on?
What can a country’s standard of living depend on?
How should rational individuals analyze their decisions?
How should rational individuals analyze their decisions?
What is the relationship between inflation and unemployment in the short run?
What is the relationship between inflation and unemployment in the short run?
What do incentives generally motivate people to do?
What do incentives generally motivate people to do?
What does the statement 'You can only do one thing at a time' imply about decision-making?
What does the statement 'You can only do one thing at a time' imply about decision-making?
What does comparing cost and benefit allow individuals to do?
What does comparing cost and benefit allow individuals to do?
Why might someone perceive government as a negative force?
Why might someone perceive government as a negative force?
What is the main consideration of the statement 'Everyone in society should be guaranteed the best healthcare possible' from an equity perspective?
What is the main consideration of the statement 'Everyone in society should be guaranteed the best healthcare possible' from an equity perspective?
How does the statement 'When workers are laid off, they should be able to collect unemployment benefits until they find a new job' relate to efficiency?
How does the statement 'When workers are laid off, they should be able to collect unemployment benefits until they find a new job' relate to efficiency?
What could be a possible opportunity cost of studying at IISPP?
What could be a possible opportunity cost of studying at IISPP?
Which of the following best describes a trade-off for a family deciding whether to buy a new car?
Which of the following best describes a trade-off for a family deciding whether to buy a new car?
What might be a benefit of studying one more semester at IISPP?
What might be a benefit of studying one more semester at IISPP?
Which of the following is an example of an incentive to study more?
Which of the following is an example of an incentive to study more?
What economic principle does the phrase 'A picture is worth a thousand words' suggest in relation to learning economics?
What economic principle does the phrase 'A picture is worth a thousand words' suggest in relation to learning economics?
Which statement reflects a misconception about equity in resource distribution?
Which statement reflects a misconception about equity in resource distribution?
Why might someone decide to go to graduate school despite the opportunity costs involved?
Why might someone decide to go to graduate school despite the opportunity costs involved?
When discussing equity and efficiency, what is a common challenge that arises?
When discussing equity and efficiency, what is a common challenge that arises?
What does the phrase 'There is No Such Thing as a Free Lunch' imply?
What does the phrase 'There is No Such Thing as a Free Lunch' imply?
Which principle best describes the idea that choosing one option requires giving up another?
Which principle best describes the idea that choosing one option requires giving up another?
Which term refers to the value of the next best alternative when a choice is made?
Which term refers to the value of the next best alternative when a choice is made?
What does efficiency in economics primarily relate to?
What does efficiency in economics primarily relate to?
Which of the following represents a market economy characteristic?
Which of the following represents a market economy characteristic?
Which principle explains the concept of adjusting decisions based on incremental changes?
Which principle explains the concept of adjusting decisions based on incremental changes?
What does productivity in economics refer to?
What does productivity in economics refer to?
Which of these concepts is associated with the distribution of wealth and resources?
Which of these concepts is associated with the distribution of wealth and resources?
What can cause a market failure?
What can cause a market failure?
What role does money play in an economy?
What role does money play in an economy?
What is a trade-off in economic decision-making?
What is a trade-off in economic decision-making?
How can trade among people be described?
How can trade among people be described?
What is an example of opportunity cost?
What is an example of opportunity cost?
Why is productivity important for the economy?
Why is productivity important for the economy?
What should governments do in case of market failure?
What should governments do in case of market failure?
What trade-off is involved in deciding to study rather than sleep?
What trade-off is involved in deciding to study rather than sleep?
How can one compare psychological benefits and monetary costs of a vacation?
How can one compare psychological benefits and monetary costs of a vacation?
Which of the following best describes an incentive?
Which of the following best describes an incentive?
What is a potential consequence of reserving parking for disabled people?
What is a potential consequence of reserving parking for disabled people?
What is the role of maintaining a balanced approach to inflation and unemployment?
What is the role of maintaining a balanced approach to inflation and unemployment?
Flashcards
Economics
Economics
The study of how people make choices in the face of scarcity.
Trade-off
Trade-off
The idea that having more of one thing means having less of something else.
Opportunity Cost
Opportunity Cost
The value of the next best alternative that is given up when making a choice.
Rationality
Rationality
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Marginal Change
Marginal Change
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Incentive
Incentive
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Resources
Resources
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Market Economy
Market Economy
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Efficiency
Efficiency
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Equality
Equality
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Thinking at the margin
Thinking at the margin
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A country's standard of living
A country's standard of living
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Inflation
Inflation
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Government's role in the economy
Government's role in the economy
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Phillips Curve
Phillips Curve
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Responding to incentives
Responding to incentives
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Marginal benefit
Marginal benefit
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Marginal cost
Marginal cost
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Incentive response
Incentive response
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Specialization and trade
Specialization and trade
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Government intervention
Government intervention
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Economic efficiency
Economic efficiency
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Economic equality
Economic equality
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Economic output
Economic output
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Monetary policy
Monetary policy
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Universal Healthcare
Universal Healthcare
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Unemployment Benefits
Unemployment Benefits
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Standard of Living
Standard of Living
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Equity vs. Efficiency
Equity vs. Efficiency
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Study Notes
Course Information
- Subject: ECO202, Principles of Microeconomics
- Instructor: Vrak Thanit
- Textbook: Principles of Microeconomics by N. Gregory Mankiw (10th Edition)
- Teaching Material: Provided as a teaching manual
Chapter 1: Ten Principles of Economics
Table of Contents
- Discussion
- Review
- Class Activities
- Homework & Exercises
Discussion: Reflections
- Reflection question 1: Consider the phrase "There is no such thing as a free lunch" and your personal agreement or disagreement.
- Reflection question 2: Explain why you chose to study at IISPP.
- Reflection question 3: Describe your group assignment task division strategies.
Review: Key Concepts
- Economics:
- Scarce Resources
- Individual Interaction
- Whole Economy
- Trade-Off:
- Opportunity Cost
- Trade
- Efficiency
- Equality
- Rational & Marginal Change
- Market Economy
- Productivity
- Money
- Unemployment
- Inflation
- Incentive
- Market Failure
- Externality
- Market Power
Review: Learning Outcomes
-
How People Make Decisions:
- People face trade-offs
- The cost of something is what you give up to get it
- Rational people think at the margin
- People respond to incentives
-
How People Interact:
- Trade can make everyone better off
- Markets are usually a good way to organize economic activity
- Governments can sometimes improve market outcomes
-
How the Economy as a Whole Works:
- A country's standard of living depends on its ability to produce goods and services
- Prices rise when the government prints too much money
- Society faces a short-run trade-off between inflation and unemployment
-
Alternative activities considered:
- People can only do one thing at a time.
- Exchange what you don't have
- Government is a bad guy/Government is not a bad guy
- People compare cost and benefit.
- People care only what is best for them
Class Activities: Trade-offs
- Activity: Calculate how much time is spent on each of your daily activities(sleeping, eating, classroom study, traveling, self-studying). Focus on finding ways to manage your time efficiently to perform your daily activities.
Class Activities: Opportunity Cost
- Activity 1: The RGC spent $10,000 to help flood victims. What could have been done with this money?
- Activity 2: The RGC spent over $150 million to build the Morodok Techo National Stadium. What could have been done with this amount of money alternatively?
Class Activities: Cost and Benefit
- Activity 3: Analyze the costs and benefits of taking a vacation. Consider how to balance psychological benefits against financial and opportunity costs.
Class Activities: Incentive
- Activity 4: Think about incentives that can motivate you to study. Consider the provided article on "Cash Incentive".
Class Activities: Efficiency vs Equity
- Activity 5: Should parking spaces be reserved for disabled people in crowded places? Analyze the consequences for each decision.
- Activity 6: Discuss the statements from the standpoint of equality and efficiency: "Everyone in society should be guaranteed the best healthcare possible." and "When workers are laid off, they should be able to collect unemployment benefits until they find a new job."
Homework & Exercises
- Homework 1: Discuss individual perspective of resource scarcity and why. (200 words)
- Homework 2: Determine opportunity cost of studying at IISPP. (100 words)
- Homework 3: List three benefits of studying one more semester at IISPP. (100 words)
- Homework 4: Discover three incentives to study more. (200 words)
Homework (Optional)
- Homework 5: Describe trade-offs faced by a family deciding to purchase a car, a professor preparing for class, and a recent graduate considering graduate school.
Additional Notes
- "A picture is worth a thousand words" : Learning economics isn't about grades; it is a valuable guide to understanding life experiences.
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