Macro: Chapter 1 Study
18
1 - 1 Copyright McGraw-Hill/Irwin, 2005 The Economic s Perspectiv e Why Study Ec onomics Economic Met hodology Macroeconomi cs and Micro economics Pitfalls to Sound Reason ing Key Terms Previo us Slide Next Slid e End End Show Show The Nature and Method of Economics 1 C H A P T E R
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Transcript of Macro: Chapter 1 Study
1 - 1Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
The Nature and Method of Economics
1C H A P T E R
1 - 2Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
The Economics PerspectiveConsider...
• MARGINAL ANALYSIS
Marginal Benefits &
Marginal Costs
• SCARCITY & CHOICE• RATIONAL BEHAVIOR• UTILITY
1 - 3Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
WHY STUDY ECONOMICS
plus many modern contributors...
•Adam Smith•David Ricardo•John Stuart Mill•Karl Marx•John Maynard Keynes
Economics for Citizenship
Professional & Personal Applications
1 - 4Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
ECONOMIC METHODOLOGY
Scientific Method
Hypothesis Testing
Theory
Law
Principles
Models
1 - 5Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
Theories
Facts
Policy Economics
Theoretical Economics
ECONOMIC METHODOLOGY
1 - 6Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
Analytical EconomicsTerminologyGeneralizations
ECONOMIC METHODOLOGY
1 - 7Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
Analytical EconomicsTerminologyGeneralizationsOther-Things-Equal
ceteris paribus
ECONOMIC METHODOLOGY
1 - 8Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
Analytical EconomicsTerminologyGeneralizationsOther-Things-Equal
ceteris paribusAbstractions
ECONOMIC METHODOLOGY
1 - 9Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
Analytical EconomicsTerminologyGeneralizationsOther-Things-Equal
ceteris paribusAbstractionsGraphical Expression
ECONOMIC METHODOLOGY
1 - 10Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
ECONOMIC POLICY
STATE THE GOAL
POLICY OPTIONS
IMPLEMENT &EVALUATE
1 - 11Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
What are our goals and objectives?
ECONOMIC GOALS
1 - 12Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
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EndEndShowShow
TRADEOFFS
•Economic Growth•Full Employment•Economic Efficiency•Price-Level Stability•Economic Freedom•Equitable Distribution•Economic Security•Balance of Trade
ECONOMIC GOALS
1 - 13Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
MACROECONOMICS...
1 - 14Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
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EndEndShowShow
MICROECONOMICS...
MACROECONOMICS...
1 - 15Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
Positive EconomicsAbsolute Facts
Normative EconomicsWhat Ought to be
MICROECONOMICS...
MACROECONOMICS...
1 - 16Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
BiasesLoaded Terminology DefinitionsFallacy of CompositionCausation Fallacies
Post Hoc FallacyCorrelation vs. Causation
PITFALLS TO SOUND REASONING
economicseconomic perspectiveutilitymarginal analysisscientific methodtheoretical economicsprinciplesgeneralizationsother-things-equal assumption
policy economicstradeoffsmacroeconomicsaggregatemicroeconomicspositive economicsnormative economicsfallacy of composition“after this, therefore because of this” fallacy
ENDBACKCopyright McGraw-Hill/Irwin, Inc. 2005
1 - 18Copyright McGraw-Hill/Irwin, 2005
The Economics Perspective
Why Study Economics
Economic Methodology
Macroeconomics and Microeconomics
Pitfalls to Sound Reasoning
Key Terms
PreviousSlide
NextSlide
EndEndShowShow
THEECONOMIZING
PROBLEM
CHAPTER 2
COMING SOON
