1. Managerial Economics
Topic 1 – Ground Rules for the Course & Introduction to the Economic Way of Thinking or what are we doing here and why?
Course material.
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WSJ
What we will do the next ten weeks.
Attendance.
Exams.
Presentations.
Networking.

2. Apply Economics to Business Issues
Why ?
Give your employer and subordinates incentives to do what you want
Predict the consequences of your choices
Evaluate the costs and benefits of your opportunities
Understand the effects of government policies
Raise your income/wealth
Reduce Shirking

3. Review Syllabus Book WSJ Quiz (1) Attendance?? Presentations – Teams
Networking
Dates
Final

4. Class Rules Attendance????? – Woody Allen – Success is 90% showing up”
Stay in touch and know what to stay in touch about
Don’t interfere with the learning of your fellow students
Mid term date will be announced.
Project will be Team , Professor, and Team Leader Graded

5. Micro & Macro Mostly Micro
Early Economists did not think of Micro and Macro as different subjects – this starts with Keynes
One day of macro & International
World developments
Historical perspectives

6. Scarcity Limited Resourses Unlimited Wants Scarcity creates conflicts
Therefore choices have to be Made
Something must be given up

7. Making Decisions
What
How
For whom

8. Organizing this Decision making
Markets
Commands/Planning
Tradition

9. Competition (its everywhere)
The outcomes depend on the rules
Choices – thus discrimination can not be avoided.
Ex anti v.s. Ex post equality
“I object to discrimination” = I do not like the rules
Scarcity means discrimination MUST occur because every choice discriminates
Redistribution - Rawls
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10. The Economic Way of Thinking
Look to Market
Property Rights
Legal System
Trade Property Rights
Very Important
Takings
Self Interest (Public Interest)
Clarifying Options
Opportunity Cost
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11. The Economic Way of Thinking
Marginal Analysis
Individualistic
Applicable Everywhere
Comparative Advantage
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12. THEORY - Methodology
Assumptions
Model
Hypothesis
Empirical Test

13. Methodology - More Positive Normative
It takes a theory to beat a theory