ECN Introduction PDF

ECN INTRODUCTION What is Economics? ▣ Google – “The branch of knowledge concerned with the production, consumption, and transfer of wealth” ▣ Wikipedia – “Economics is the social science that analyzes the production, distribution and consumption of goods and services” ▣ About.com - "Most simp...

ECN INTRODUCTION What is Economics? ▣ Google – “The branch of knowledge concerned with the production, consumption, and transfer of wealth” ▣ Wikipedia – “Economics is the social science that analyzes the production, distribution and consumption of goods and services” ▣ About.com - "Most simply put, economics is the study of making choices." Economics deals with scarcity and choices. Since we have unlimited wants but limited resources, the problem of scarcity arises. Because there is scarcity of resources, we have to make choices. Economics studies how people make choices and also tells you how you should make choices to make the most out of the scarce resources. Economics is not just about money, economy demand & supply! Two branches of Economics: ▣Microeconomics: is a branch of economics that studies the behavior of individual households and firms in making decisions on the allocation of limited resources ▣Macroeconomics: is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. Graphing Data ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Graph represents quantity as a distance on a line Scale lines are called axis Vertical line is the y-axis Horizontal line is the x-axis Zero point shared by both axes is called the origin y-coordinate runs from a point to the horizontal axis x-coordinate runs from a point to the vertical axis x and y are called variables because their values vary/change 5 Types of graph ●Graphs of two variables Positive relationship- Both variables move in the same direction. Can be linear relationship (straight line) or non-linear relationship (curve). Negative Relationship- As one variable increases other variable decreases. Can also be linear or non-linear relationship. 6 Slope Slope• • • Slope measures the steepness of a line/curve How much one variable responds to the change in another variable Slope is small (or large) for relatively flat (or steep) line Positive slope- when both x & y variables increase or decrease at the same time; upward sloping line Negative slope- value of one variable increases while other decreases; downward sloping line 7 Calculating slope ▣ 8 Linear Relationship Linear equation: Equation of a straight line representing relationship between x and y variable All linear equations have the same general form• • • where a and b are constants, x and y are variables y = a + bx point where the line intersects the a is called the y-intercept: y-axis b is the slope of the line (i.e. b = ∆y/∆x) Position of the line is determined by ‘a’ (y-intercept) Positive (or negative) relationship has positive (or negative) slope 9 Mathematics in Economics ▣Graphs – a diagram showing relationship between variable quantities, usually of two variables each measured on their own axes i.e. – Cellphone maket - dependent variable: price - independent variable: Cellphone demand ▣ ▣ Plotting a graph: Price Demand for Cellphone 2,00,000 1,00,000 0 1 70,000 2 50,000 3 25,000 5 What happens when Income changes? HOW THIS COURSE IS ORGANIZED ▣ Quizzes: 3 Quizzes – 2 Before Midterm and 1 after Midterm. 10% Mark of the entire grade in Each Quiz ▣ Lectures: Approximately 5-6 Lectures for Midterm and around 5 lectures for Final ▣ Pre-requisite: I will not place any course as a prerequisite for this course. However, I would very much appreciate if you are familiar with number system; basic algebra and calculus. ▣ Text-book: Not required, slides are enough but you are welcome and encouraged to read a textbook. TEXT BOOK: Microeconomics: “Principles of Microeconomics, 6th Edition by Gregory Mankiw” COURSE POLICY ▣Attendance: You are required to attend all class sessions and actively participate in class discussions ◼ AUTOMATIC WITHDRAWAL The course will be automatically withdrawn if a student may miss maximum of 8 classes of a particular course. ▣Make a up tests (only class test) will be given only if you present written evidence, as soon as possible, that you did (or will have to) miss an exam for a legitimate reason, e.g. illness or family emergency. A note that you have visited hospital is not proof of a legitimate reason. Travel and leisure plans are not a legitimate reason. There will be NO make-up exam for midterm or final. INCOMPLETE (‘I’) GRADE Awarding of Incomplete or ‘I’ grades should be strongly discouraged. ‘I’ will only be allowed for students who have a valid reason (ascertained by the senior management). In situations where the student is unable to complete the course due to unanticipated illness or family emergency and has not attended at least 75% of the classes held, he / she will be asked to withdraw from that course and repeat it. In unavoidable circumstances where students have completed 75% of the classes but are unable to continue (due to illness or family emergency), Incomplete grade of ‘I’ may be granted. Incomplete course has to be completed by the end of the next semester, otherwise grade ‘I’ automatically becomes grade ‘F’. The student is not required to register for the course in the next semester. WITHDRAWAL (‘W’) A ‘W’ grade means withdrawal. A student may decide to withdraw from a course by the deadline. Students must apply to the Program Office for withdrawal from a course with the permission of the concerned course instructor, Academic Advisor, and the Dean. Withdrawal from only one course in a semester is allowed but the students should provide valid reason along with documents while applying for the withdrawal. UNFAIR MEANS DURING EXAM Students are not allowed to keep bags, handouts, books, mobile phones, smart watches or any other smart electronic devices with them during any exam. Students are advised to keep everything in the front of the class room before the exam starts. Please note that, just carrying any smart electronic devices (even if the device is turned off or put it in silent mode) during the exam will be considered as “cheating”. Moreover, during the exam, anything written on hand palms (or anywhere else) and carrying paper materials (whatever is written) will be considered as “cheating”. Any sorts of “cheating” will result in an “F” grade with no exception. During the exam, students are only allowed to carry pen, pencil, eraser, sharpener, ruler, highlighter and calculator in a clear plastic bag. Get REWARDED for working HARD!