Chapter 1-Ten Principles of Economics 2024 PDF

Subject ECO202: Principles of Microeconomics Chapter 1: Ten Principles of Economics Instructor: Vrak Thanit Teaching Manual  Table of Content 01 Discussion 02 Review 03 Class Activities...

Subject ECO202: Principles of Microeconomics Chapter 1: Ten Principles of Economics Instructor: Vrak Thanit Teaching Manual  Table of Content 01 Discussion 02 Review 03 Class Activities 04 Homework & Exercise 2  1. Discussion Reflection 1. What do you think of the phrase “There is No Such Thing as a Free Lunch”? Do you agree with this phrase or not? 2. Why did you choose to study IR at IISPP? 3. When doing the group assignment, how do you divide the task among your teammates? 3  Scarce Whole Individual Interaction 2. Review: Key Concept Resources Economy Efficiency Trade-Off Equality Economics Opportunity Cost Trade Productivity Unemployment Rational & Market Economy Marginal Change Money Inflation Externality Incentive Market Failure Market Power 4  2. Review: Learning Outcome How People Make How the Economy How People Interact Decision as a Whole Work Trade can make everyone A country’s standard of People face trade-off living depends on its ability better off to produce goods and The cost of something is Markets are usually a good services what you give up to get it way to organize economic Rational people think at the activity Prices rise when the margin Governments can government prints too much sometimes improve market money People Respond to outcomes Incentives Society faces a short-run trade-off between inflation and unemployment 5  2. Review: Learning Outcome How People Make How the Economy How People Interact Decision as a Whole Work People can do only one Exchange what you don’t thing at a time have You create more things => more convenience + money Do one thing means to forgo another thing Government is a bad guy People compare cost and Eating too much sugar is benefit Government is not a bad not good for your health People only care what is guy best for them You get one thing at the expense of another 6  2. Review: Synthesis The fundamental lessons are: (1) Due to scarce resources, individual face trade-off in decision making, in which they need to forgo some opportunities in choosing one thing by thinking rationally in term of marginal cost and benefit and responding to the incentive accordingly; (2) interactions among people through trade can be mutually beneficial, and government should only interfere inside the market for the purposes of remedying a market failure and promoting economic equality; and (3) economic as a whole are better off when there is a high productivity, well-managed value of monetary flow inside the economy, and good policy in balancing inflation and unemployment rate. 7  3. Class Activities: Trade-off Eating Sleeping 1. How much time you spend for each activities in 24 hours? Classroom Self-Study Study Consider the most efficient way to manage your time. Traveling 8  3. Class Activities: Opporunity Cost 2. RGC decided to spend $10,000 to buy food and build a shelter to help those affected by the flood in Phnom Penh. What is the opportunity cost of this action? 9  3. Class Activities: Opporunity Cost 3. RGC decided to spend over $150 Million to build The Morodok Techo National Stadium. What is the opportunity cost of this action? 10  3. Class Activities: Cost and Benefit 4. You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, and forgone wages) are measured in dollars, but the benefits of the vacation are psychological. How can you compare the benefits to the costs? 11  3. Class Activities: Incentive 5. Read the article “Cash Incentive” in Extra Reading Material Do you think that giving cash to students can boost their studying performance? 12 What other incentive that motivate you to study?  3. Class Activities: Efficiency vs Equity 6. In a crowded place, should some parking space be reserved for the disable people? What are the consequences for each decision you make? 13  3. Class Activities: Equity vs Efficiency Discuss each of the following statements from the standpoints of equality and efficiency. a. “Everyone in society should be guaranteed the best healthcare possible.” b. “When workers are laid off, they should be able to collect unemployment benefits until they 14 find a new job.”  4. Homework and Exercises Homework: Question for Review 1. Do you think the resources we have in this world are scarce or not? Why? [200 words at most] 2. Find the opportunity cost of studying at IISPP. [100 words at most] Note: List down at least three alternative chances that you have to give up when coming to study here 3. Determine the benefits of studying one more semester at IISPP. [100 words at most] Note: List down at least three benefits that you can think of 4. Find THREE incentives that will motivate you to study more. [200 15 words at most]  4. Homework and Exercises Homework: Optional 1. Describe some of the trade-offs faced by each of the following: a. a family deciding whether to buy a new car b. a professor deciding how much to prepare for class c. recent college graduate deciding whether to go to graduate school 16  A picture is worth a thousand words “Learning economics is not about getting credit for your study. It is the essence of your everyday life. It will guide you to understand more about yourself and your 17 surrounding.”