文档介绍：Week 1: Microeconomics II
Course Code: SJ 20303
Topic: Microeconomics and Application
Instructor: YONG ENN LUN
School of Science and Technology
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Outline
Essential Microeconomics Principles
Uses of Microeconomics
Application 1
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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.
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Social Science
Economics
Microeconomics
Macroeconomics
Industrial
financial
Human Capital
Environmental
Others
Mathematical Economics
Econometrics
Applied Statistics
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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
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Basically, the general principles are:
Scarcity of resources
Opportunity costs
Increasing opportunity cost
Real Opportunity Cost
Real Opportunity cost and inefficiency
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Quantity of Apple
Quantity of Apple Pie
a
b
c
d
6
7
12
13
10
9
6
2
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Assumptions inside the Production possibility Frontier (PPF)
Factors of production is fixed; labour and capital and no technology development
Agent involved is firm/producer who face economic problems and questions
The concept of increasing opportunity applied.
Producers are rational.
Normal good: Apple and Apple pie
At a particular price, place and time (PPPT)
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