Mgt 203
Lecture1
1.What’s the “ economizing problem”?
Scarce resources VS. unlimted wants.
( labor, capital, land)
2. Are “normative statements”(规范声明) merely factual and free of value-judgment?
No, normative is prescriptive. Things should be postive and factual.
3. Define the “fallacy of composition”. Fallacy of composition(组合谬误) is false generation.
4. Money is not considered a resource. Why?
Because money is not a product.
5. Why is the production possibilities curve downsloping?
Because of opportunity cost, you should sacrifice something.
6. Is the production possibilities curve bowed out? Explain why or why not?
Because opportunity is increasing.
7. Does a reduction of unemployment cause the production possibilities curve to shift outward?
No, it’s closer to the curve.
8. Which of the following countries may be considered a “command economy (中央经济管制)”: the U.S.; Cuba; Chile?
Cuba.
Note: Capital economy is 资本主义经济
9. Rationality(合理性) : Maximazing benefit and minimazing cost.
10. Cost includes explicit(显性成本) and opportunity.
11. Income includes nominal income (名义收入) and real income.
Lecture 2
1. Price and Quantity demand are related.
2. Does a change in price cause the “demand” for a product to change? Explain.
No, a change in price cause the quantity demand for a product to change.
A changing price change in Quantity Demand: Movement.
2. Define a “normal good”.
Normal good: income and demand vary directly. Income increasedemand increase.
3. List two of the non-price factors that cause the supply curve to shift.
Rising cost, technology, taxes, sudsides.
A changing non-price factor change in demand: shift.
Eg: a. For normal good
If income increase, at any price, demand increase.
If income decrease, at any price, demand decrease.
b. For inferior good.
If income increase, demand decrease. Expectation is very important.
4. Assume a given supply curve and an increase in demand. What will be the effect of rising
1.What’s the “ economizing problem”?
Scarce resources VS. unlimted wants.
( labor, capital, land)
2. Are “normative statements”(规范声明) merely factual and free of value-judgment?
No, normative is prescriptive. Things should be postive and factual.
3. Define the “fallacy of composition”. Fallacy of composition(组合谬误) is false generation.
4. Money is not considered a resource. Why?
Because money is not a product.
5. Why is the production possibilities curve downsloping?
Because of opportunity cost, you should sacrifice something.
6. Is the production possibilities curve bowed out? Explain why or why not?
Because opportunity is increasing.
7. Does a reduction of unemployment cause the production possibilities curve to shift outward?
No, it’s closer to the curve.
8. Which of the following countries may be considered a “command economy (中央经济管制)”: the U.S.; Cuba; Chile?
Cuba.
Note: Capital economy is 资本主义经济
9. Rationality(合理性) : Maximazing benefit and minimazing cost.
10. Cost includes explicit(显性成本) and opportunity.
11. Income includes nominal income (名义收入) and real income.
Lecture 2
1. Price and Quantity demand are related.
2. Does a change in price cause the “demand” for a product to change? Explain.
No, a change in price cause the quantity demand for a product to change.
A changing price change in Quantity Demand: Movement.
2. Define a “normal good”.
Normal good: income and demand vary directly. Income increasedemand increase.
3. List two of the non-price factors that cause the supply curve to shift.
Rising cost, technology, taxes, sudsides.
A changing non-price factor change in demand: shift.
Eg: a. For normal good
If income increase, at any price, demand increase.
If income decrease, at any price, demand decrease.
b. For inferior good.
If income increase, demand decrease. Expectation is very important.
4. Assume a given supply curve and an increase in demand. What will be the effect of rising