Introduction to Economics I

Ten principles of economics: exchange, costs, rationality, opportunity cost, market economy, government intervention, inflation. To think like an economist: economics as a science, assumptions and models, micro and macroeconomics, positive and normative analysis. Independence and gains from trade: Production possibilities, absolute and comparative advantage. Market rules of demand and supply: The nature of a competitive market, individual demand and market demand, individual supply and market supply, balance, balance. Elasticity and applications: Price elasticity of demand and calculation, total income and demand elasticity, the price elasticity of supply and calculation. Supply, demand government policy: price controls, price bases, and ceilings, taxes. Consumers, producers, and efficiency: Consumer and producer surplus, market activity. The cost of taxation: the loss of tardiness of tax, the components of loss of tardiness, the tax income, the inflation curves. International trade: components of trade, the effects of tariffs and quota. Externalities and public goods: Externalities, Internalizing externalities, transaction costs, public goods, private goods, common sources. Production costs: Total income, total cost, and profit, production function, fixed and variable costs, average and marginal costs, cost curves, short and long term costs. Companies in competitive markets: Profit maximization and firm supply. Monopoly: monopoly production and pricing decisions, profit maximization, monopoly profit, monopoly welfare cost, monopoly public policy, price discrimination Oligopoly: Game theory and cooperation, public policy against oligopolies.