1 I. Introduction. 2 3 Economic Theory of Choice - Certainty 1. Feasible Opportunity Set 2. Criteria for Choice 3. Optimum Choice 4. Equilibrium as Aggregate.

Slides:

Advertisements

Similar presentations

Intermediate Macroeconomics

Advertisements

The Circular Flow Model

INTRODUCTION TO THE ECONOMICS OF ANTITRUST. ASSUMPTIONS OF CLASSICAL ECONOMICS PEOPLE ACT RATIONALLY TO MAXIMIZE THEIR OWN INTERESTS.

Introduction: Economic Issues Introduction: Economic Issues.

Consumption & Saving Over Two Periods Consumption and Saving Effects of Changes in Income Effects of Interest Rates.

Decision making and economics. Economic theories Economic theories provide normative standards Expected value Expected utility Specialized branches like.

Measuring Macroeconomic Variables

Lecture 10: Consumption, Saving and Investment I L11200 Introduction to Macroeconomics 2009/10 Reading: Barro Ch.7 16 February 2010.

Finance, Financial Markets, and NPV

An introduction to game theory Today: The fundamentals of game theory, including Nash equilibrium.

More, But Not Of The Same. Further Analysis Remember that I + G + CA = S + T. I, however, contains planned or demanded investments (I D ) + unplanned.

Slides for Part III-B These slides will take you through the basics of income- expenditure analysis. The following is based on Dornbusch & Fisher, Chapter.

CHAPTER 2 DEMAND AND SUPPLY ANALYSIS: CONSUMER DEMAND Presenter’s name Presenter’s title dd Month yyyy.

An introduction to game theory Today: The fundamentals of game theory, including Nash equilibrium.

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 15: Saving, Capital Formation, and Financial Markets.

Section 1.2 Opportunity Costs and Strategies.  Personal resources require management just like financial resources.  You have to make choices how you.

1 of 25 PART V The Core of Macroeconomic Theory © 2012 Pearson Education CHAPTER OUTLINE 26 Money Demand and the Equilibrium Interest Rate Interest Rates.

GDP in an Open Economy with Government Chapter 17

Chapter Four Investment Spending and Multiplier. 1. Investment Decision: Three Methods Present value Expected returns Expected returns Expected costs.

The Theory of Consumer Choice

Economic Indicators Lauren Rudd January 9, Same store sales 01/9/20142.

Module 16- Consumption, Income, and the Multiplier J.A.SACCO.

1 Lecture 8 The Keynesian Theory of Consumption Other Determinants of Consumption Planned Investment (I) The Determination of Equilibrium Output (Income)

Income and Spending Chapter #10 (DFS)

THE ECONOMIC EFFECTS OF PUBLIC SECTOR BORROWING Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Introduction to Economics Ms. Mangal Gogte. Basic Concepts Scarcity: People do not have as much of everything as they want Choice: Wants unlimited, means.

So…why should I start planning for the future now???

Tutorial 1 Introduction to Economics 1. LEARNING OUTCOMES The term “economy” 2. Difference between microeconomics and macroeconomics; 3.The three basic.

Income-Expenditure Model recession Great Recession.

Chapter Twenty Five The Government and Fiscal Policy.

1 Limits, Alternatives, and Choices McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

Finance (Basic) Ludek Benada Department of Finance Office 533

ECONOMICS 6 TH GRADE SOCIAL STUDIES.  MAN-MADE THINGS WE USE TO HELP US WORK, LIKE FACTORIES, MACHINES, AND TECHNOLOGIES CAPITAL RESOURCES.

DEMAND BY ALANNA SMYTH. DEMAND…..  Means the number of units of a good which consumers are willing to purchase at any given market price at any given.

1 The Classical Long-Run Model. 2 Classical Model A macroeconomic model that explains the long- run behavior of the economy Classical model was developed.

FISCAL POLICY NOT “PHYSICAL” POLICY. DISCRETIONARY FISCAL POLICY  Fiscal Policy: Using Government Spending (G) and/or Taxes (T) to fine-tune the macroeconomy.

National Endowment for Financial Education

Social Studies: Chapter 6 Hosted by Mrs. Tweedie.

1 Chapter 4 Prof. Dr. Mohamed I. Migdad Professor in Economics 2015.

Quantity Theory of Money Demand Economics 330, Handout of December 4, 2006.

pictures_slideshow/article.htm.

Economics 9-1 The Economics of Taxation Pages

Decision Analysis Pertemuan Matakuliah: A Strategi Investasi IT Tahun: 2009.

Choices in Housing and Transportation: Live, Work and Play in Calgary.

Maximizing Wealth Means Maximizing What Others See as our Wealth. Wealth is what we value and we assume in macroeconomics that if everyone is at least.

Managing Your Money 1/19 I can…  Explain my sources of income.  Explain how to make a plan for spending and saving money (budget) BW….  Paying for part.

Lokanandha Reddy Irala 1 Capital Asset Pricing Model Capital Asset Pricing Model.

Budgets and Businesses Workshop. Budget: is a plan that shows income, spending and saving. Income: Spending: Saving:

Outline Assumption of the model The labor market The aggregate production function The simple circular flow model Say’s law Leakages and injections The.

Measuring Macroeconomic Variables Marek Szczepański.

© 2009 Pearson Education, Inc. Publishing as Prentice Hall Principles of Economics 9e by Case, Fair and Oster PART V THE CORE OF MACROECONOMIC THEORY 24.

Loanable Funds.

k-2 Lesson B: Living green, saving green choices, choices

Income and Expenditure

Cost Benefit Analysis, Marginal Benefits, and Marginal Costs

Portfolio Theory and Investment Analysis

Buy Skin Lightening Cream UK | Everything4you

INCOME, INTEREST RATES, POLICY, AND THE OPEN ECONOMY

Asset Pricing Models Chapter 9

Unit 12.2A: Macroeconomic equilibrium

INCOME, INTEREST RATES, POLICY, AND THE OPEN ECONOMY

MACROECONOMICS IN THE LONG RUN: GROWTH AND PUBLIC POLICY

Economic Theory Chapter 1.2.

The Influence of Monetary and Fiscal Policy on Aggregate Demand

Economic Theory Chapter 1.2.

Applications of Rational Choice and Demand Theories

Economic Theory Chapter 1.2.

Economic Decisions. Economic Decisions IT MATTERS BECAUSE You will make economic decisions every day, and you will do so all your life.

U.S. Economic System Type: Explanation

Presentation transcript:

1 I. Introduction

2

3 Economic Theory of Choice - Certainty 1. Feasible Opportunity Set 2. Criteria for Choice 3. Optimum Choice 4. Equilibrium as Aggregate Assume 10,000 income in each of two periods Transfer at 5% Then Die

4 Opportunity Set - What are the possibilities? Extremes My mother-in-law spend as much as you can now Rational world can only borrow what can pay back A + (.05)A = 10,000 A = = 19,524 Scrooge - save as much as you can 10, ,000 (1.05) = 20,500 All possibilities on bounded straight line

5

6

7

8