1. Welcome Introduction to Economics @ EFA 3 Prof. Dr. Peter Schmidt
Introduction/Review Principles of Economics, Microeconomics

2. What‘s it about ? What do you know? What do you expect?
WHY
study
Economics ?
What‘s it about ? What do you know? What do you expect?

3. Business
Environment

4. Introductions . . .
Economics
Lecturer
Students

5. Module Description: Learning Outcomes

6. Module Description: Contents

7. market . research . culture
Peter Schmidt
Who am I
Economics & Statistics
market . research . culture 1 1

8. You are highly motivated students 
have to carry your individual workload:

9. schmidt-bremen.de

10. I want YOU … to make this YOUR class
Assume responsibility for your – and all our Learning Outcomes
Help me make the class better
E c o n o m i c s

11. How do we learn ?… Listening Watching Writing Thinking
… interactive (team) work?
NAME SIGNS please
-> after each class (incl. lunch break):
3 most important things I learned today
(up to 3) questions
Students are selcted at random at the beginning of the next class

12. Assessment:

13. Aulis group

14. Whatsta-gram Face-Snap-App ee-Mail I tube, you tube food in class But
please NO
Whatsta-gram
Face-Snap-App e
I tube, you tube
food in class
But
( drinks are ok)
NAME SIGNS please

15. (10) Principles of Economics

16. Every field of study has its own terminology
Mathematics
axioms
integrals
vector spaces
Psychology
ego id
cognitive dissonance
Law
torts
venues
Promissory estoppel

17. Every field of study has its own terminology
Economics
Opportunity cost
Elasticity
Supply
Consumer Surplus
Comparative advantage
Deadweight loss
Demand

18. Economics trains you to. . . .
Think in terms of alternatives.
Evaluate the cost of individual and social choices.
Examine and understand how certain events and issues are related. 2

19. The Economist as a Scientist
The economic way of thinking . . .
Involves thinking analytically and objectively.
Makes use of the scientific method. 3

20. Observation, Theory and More Observation!
The Scientific Method
Uses abstract models to help explain how a complex, real world operates.
Develops theories, collects, and analyzes data to prove (or dismiss) the theories.
Observation, Theory and More Observation! 4

21. Ten Principles of Economics
Chapter 1
Copyright © 2001 by Harcourt, Inc. All rights reserved.   Requests for permission to make copies of any part of the work should be mailed to:
Permissions Department, Harcourt College Publishers, 6277 Sea Harbor Drive, Orlando, Florida

22. A household and an economy face many decisions:
Who will work?
What goods and how many of them should be produced?
What resources should be used in production?
At what price should the goods be sold?

23. Society and Scarce Resources:
The management of society’s resources is important because resources are scarce.

24. Scarcity . . .
. . . means that society has limited resources and therefore cannot produce all the goods and services people wish to have.

25. Economics is the study of how society manages its scarce resources.

26. “There is no such thing as a free lunch!”
1. People face tradeoffs.
“There is no such thing as a free lunch!”

27. Economists study. . . I. How people make decisions. (principle 1-4)
II. How people interact with each other. (principle 5-7)
III. The forces and trends that affect the economy as a whole. (principle 8-10)

28. Ten Principles of Economics
I How People Make Decisions
People face tradeoffs.
The cost of something is what you give up to get it.
Rational people think at the margin.
People respond to incentives.
II How People Interact
Trade can make everyone better off.
Markets are usually a good way to organize economic activity.
Governments can sometimes improve market outcomes.
III How the Economy as a Whole Works
The standard of living depends on a country’s production.
Prices rise when the government prints too much money.
Society faces a short-run tradeoff between inflation and unemployment. 7

29. Ten Principles of Economics
I How People Make Decisions
People face tradeoffs.
The cost of something is what you give up to get it.
Rational people think at the margin.
People respond to incentives. 7

30. Ten Principles of Economics
II How People Interact
Trade can make everyone better off.
Markets are usually a good way to organize economic activity.
Governments can sometimes improve economic outcomes. 7

31. Ten Principles of Economics
III How the Economy as a Whole Works
The standard of living depends on a country’s production.
Prices rise when the government prints too much money.
Society faces a short-run tradeoff between inflation and unemployment. 7