100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
College Notes (Lectures) Principles Of Economics (5181V8EC) Macroeconomics, ISBN: 9781319181956 $7.50   Add to cart

Class notes

College Notes (Lectures) Principles Of Economics (5181V8EC) Macroeconomics, ISBN: 9781319181956

 49 views  1 purchase
  • Course
  • Institution
  • Book

College Notes Principles Of Economics (5181V8EC) Macroeconomics, ISBN: 9781319181956

Preview 4 out of 70  pages

  • August 5, 2021
  • 70
  • 2019/2020
  • Class notes
  • Fynn-paul
  • All classes
avatar-seller
Principles of Economics
Compilation Document
Contents
Principles of economics lecture 1 10-9..................................................................................................2
What is economics?...........................................................................................................................2
Chapter 1...........................................................................................................................................2
Chapter 2: models..............................................................................................................................3
Principles of economics lecture 2 18-9..................................................................................................5
Principles of economics lecture 3 24-9..................................................................................................8
Chapter 4: Market ‘Meddling’............................................................................................................8
Chapter 5: intro to international trade............................................................................................13
Principles of economics lecture 4 1-10................................................................................................22
Principles of economics lecture 5 8-10................................................................................................35
Principles of economics lecture 6 15-10..............................................................................................51
Principles of economics lecture 10 19-11............................................................................................69




1

,Principles of economics lecture 1 10-9
What is economics?
Goal of economics: conservative interpretation (make profit)/progressive interpretation (a certain
level of wealth for everyone)/idealist’s interpretation (everyone is rich)

Economics is a hard as well as a soft science.

Yes, wealth is literally power

GDP = measure of things in an economy that go through a market (demand)

Efficient institutions create a lot of wealth; moderately efficient institutions create moderate wealth;
etc.

Robinson Thesis:

- Old economic thought: materialism
- Industry created society: politics, ideas, society (created by economics)
- New theories emphasize institutions

Why is X poor and Y rich? What institutions are shaping the markets in that economy?

Macroeconomics looks at the indicators of the health of the economy as a whole. Principles of
economics focuses mostly on macro economics

What is a market? An abstract place where supply meets demand

Everything that involves transactions of money is “on the grid”. Work that is done that doesn’t
involve any financial transaction is “off the grid”.

At a high price supply increases because when the price is high enough people will make a profit no
matter how high the production costs are.

Supply is a positive slope; demand is a negative slope

Truly free markets do not exist

Interest rate = the price of money
monetary policy = policy adopted by the monetary authority of a country
that controls either the interest rate payable on very short-term borrowing
or the money supply, often targeting inflation or the interest rate to ensure
price stability and general trust in the currency.
inflation rate = the value of money (how much can I buy with my money?)
equilibrium price = evenwichtsprijs/intersection of supply and demand

Chapter 1
Principles:

1. Choices are necessary because resources are scarce (with the implication that this is done by
individuals)
2. Opportunity cost: either/or
3. Marginality: how much?
4. Rational choice: everyone wants what’s best for themselves but rationality is ‘bounded’


2

, 5. Free trade: the sum is greater than the parts (if countries open their economies, that the
benefits to both economies will be greater than if they both maximized growth autarkically)
6. Markets move to equilibrium
7. Avoid ‘deadweight loss’
8. Markets usually lead to efficiency
9. Sometimes markets can slump/malfunction
10. Spending is income (circular flow diagram)
11. If spending is too low, the economy can fall into a recession. If spending is too high, this can
cause inflation.
12. Governments can change spending

Effects of a supply subsidy




Dead-weight-loss triangle: subsidising supply depresses the price and leads to inefficient allocation
of resources  economists say that interference by the government in the market distorts the
market.

Keynes: anti-cyclical economic policy (markets should be as free as possible but when in a slump, the
government should jump in and invest a lot of money into the economy to prevent a viscious circle)

Chapter 2: models




3

, Both axes are Q!




Factors households contribute to factor markets: labour, investments/capital
Factors factor markets contribute to firms: the same labour/capital




4

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller carmenjungnitsch. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $7.50. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67474 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$7.50  1x  sold
  • (0)
  Add to cart