文档介绍：Week 1: Microeconomics II
Topic: Microeconomics and Application
Outline
Essential Microeconomics Principles
Uses of Microeconomics
Application 1
Subtopic 1: Economic Principles
Economic is an academic discipline of social science that provides discourse about the allocation of limited resources in economy to produce goods and services to satisfy unlimited wants
Economics, indeed, is a broad discipline itself. Microeconomics and macroeconomics are two separated but interrelated branches of economics.
There are many more fields that each served to focus on a particular area of study.
Continuously,
Social Science
Economics
Microeconomics
Macroeconomics
Industrial
financial
Human Capital
Environmental
Others
Mathematical Economics
Econometrics
Applied Statistics
Edited by Yong, .
Continuously,
Microeconomics Focuses on the study of choice and decision making for an individual household and firm, while macroeconomics studies the behaviour of the economic as a whole.
There is a few principles about microeconomics in some books, while more in others
Continuously,
Basically, the general principles are:
Scarcity of resources
Opportunity costs
Increasing opportunity cost
Real Opportunity Cost
Real Opportunity cost and inefficiency
Edited by Yong, .
Continuously,
If the firm produces 10 units of apple and 6 units of apple pie wants to increase the production of apple pie by one unit to the 7th unit.
It has to forgo 1 unit of apple so that resources can be shifted to produce the additional apple pie; Opportunity Cost is thus 1.
Edited by Yong, .
Continuously,
If the firm produces 6 units of apple and 12 units of apple pie wants to increase the production of apple pie by one unit to the 13th unit.
It has to forgo 2 units of apple so that resources can be shifted to produce the additional apple pie; Opportunity Cost is thus 2.
Edited by Yong, .