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MICROECONOMICS ECS201. WELCOME. WHAT ARE WE DOING TODAY?. Who am I? What to do and not to do Means of communication ADC services Unisa Analyze your study skills What do you see? Chapter 1 Chapter 2 Questions. Adc services. Delivering academic support regarding: Time Management

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Microeconomics ecs201

MICROECONOMICSECS201

WELCOME


WHAT ARE WE DOING TODAY?

  • Who am I?

  • What to do and not to do

  • Means of communication

  • ADC services

  • Unisa

  • Analyze your study skills

  • What do you see?

  • Chapter 1

  • Chapter 2

  • Questions


Adc services
Adc services

  • Delivering academic support regarding:

    • Time Management

    • Study Skills

    • Exam Preparation and Techniques

    • Stress Management

  • Professional development of lecturers.


To do or not to do …

  • Prepare

  • Pre-requisite

  • Participation

  • Homework

  • Tardiness

  • Cell phones

  • Eat and Drink


Means of communication
Means of communication

www.liezavandervyver.weebly.com

After class

Student Support Office @ student reception

By appointment

By e-mail: [email protected]

Phone: (012) 348-2551

Website!!!


Unisa procedures

Your unisa registration

UNISA PROCEDURES

  • Registrations

  • Tutorial letter 1

  • MyUnisa

  • Assignments

  • Important dates

  • Prescribed textbook

  • Exam entry


Let s analyze your study skills
Let’s analyze your study skills

  • Questionnaire

  • Different types of learners

  • Analyse

  • Assist




Chapter 1

Chapter 1

Preliminaries

What is Microeconomics?


Outcomes
Outcomes

  • Nature and importance of microeconomics

  • The workings of a market

  • Real and Nominal prices


Public Economics

Monetary

Economics

Finance

Economics

Development

Economics

International Economics


  • Equips us to answer questions

  • Explain irregularity in our everyday lives

  • Provide the background for other economic disciplines

  • Knowledge of basic economic theory

  • Application of basic economic theory

  • Gain insight in social and economic events

    WHY?

    Help us predict what is likely to happen


Themes of microeconomics
THEMES of microeconomics

  • Trade-offs

  • Prices and Markets

  • Theories and Models

  • Positive and Normative analysis

  • Nature of Markets

  • Real versus Nominal prices

  • Why study Economics?


Themes of microeconomics trade offs
THEMES of microeconomics- Trade-offs

Consumer Theory

Theory of the firm



Limited resources
LIMITED RESOURCES

  • THEORIES AND MODELS


Limited resources1
LIMITED RESOURCES

  • POSITIVE AND NORMATIVE ANALYSIS


  • Definition:

    • Collection of buyers and sellers

    • Through actual or potential interactions

    • Determine price of a product

    • Or, set of products

  • Market = More than an industry

    • Industry: Collection of firms that sell same/closely related products.

  • Potential interactions & actual interactions

  • Arbitrage:

    • Significant difference in price of commodity

    • Practice of buying low @ one location & sell high at another location


  • Competitive market

    • Perfectly competitive: Many buyers and sellers e.g. agricultural markets

  • Noncompetitive market

    • Many producers

    • Cartel: Group of producers act collectively

  • Market price:

    • Competitive market = Single price = market price

    • Not perfectly competitive = Different prices

      • Average price = Market price


  • Market Definition:

    • Buyers and sellers

  • Extent of the market:

    • Determine which buyers and sellers

    • Boundaries of a market

    • Geographical and i.t.o. range of products

  • Market definition importance:

    • Understand who is actual and potential competitors

    • Public policy decisions


  • Nominal prices:

    • Absolute price

    • “Current-dollar”

  • Real prices:

    • Price relative to aggregate measure of prices

    • “Constant-dollar”

  • Consumer Price Index

  • Producer Price Index


Impotant concepts
IMPOTANT CONCEPTS

  • IMPORTANT CONCEPTS

  • CETERIS PARIBUS

    • Assumption used when designing models.

    • Meaning: All variables other than the one economist use will remain unchanged.

    • Latin expression: “All other things being equal”

  • EQUILIBRIUM

    • Important in economic theory

    • A situation, once it has been reached, tends to persist

    • All factors in balance.


Impotant concepts1
IMPOTANT CONCEPTS

  • IMPORTANT CONCEPTS

  • PRICES

    • MACRO = Absolute prices i.e. price of goods and services

    • MICRO = Relative prices i.e. relationship between price in question and price of other products

  • RATIONAL INDIVIDUALS

    • Behave rationally

    • Well off given limitations

  • MALE OR FEMALE?

    • “He” merely used for practical reasons


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