Fundamentals
The study of decisions made by economic agents in the presence of scarcity.
What is Economics?
Choosing between ECO 153 and ENG 112 during the Spring Semester.
What is Microeconomics?
You have a limited amount of time and energy so you have to choose between the amazing variety of courses at Smith!
You paid $23, 500 in college tuition in 2021-22.
What is the accounting cost of college?
Anything that you get a bill for --> accounting cost
7%
Average inflation in the US in 2021 - highest since WWII
When we have limited amounts of money, time, land, labor, water, and other resources.
What is Scarcity?
What is Macroeconomics?
This is an example of fiscal policy.
You give up your part-time job during the academic year.
What is the economic cost of college?
The cost of school includes not just tuition and books but also the earnings you lose while you are in school.
$20.94 trillion
What is US National Income in 2020?
The study of decisions made by individual consumers/buyers and producers/sellers.
What is Microeconomics?
US exports soybeans to China and imports furniture from Vietnam.
What is Macroeconomics.
This is an example of international trade flows that are determined by technology and resources available in the a country.
Some who has money but no goods - food, clothes, heat, etc.
What is a consumer?
3.9%
What is the current unemployment rate in the US?
The study of decisions made by large groups of economic agents and by the overall economy.
What is Macroeconomics?
Your cousin takes a new job in a new company that pays him more.
What is Microeconomics? You cousin is optimizing his own personal economic wellbeing.
Someone who has goods but no money?
What is a Producer or Seller?
Jerome Powell
Who is the Chairman of the Federal Reserve Board?
The cost of the next best alternative.
What is opportunity cost?
There are 11 million unfilled jobs in the U.S. economy currently.
What is Macroeconomics?
The sum of decisions by individuals (micro) becomes a large scale phenomenon (macro) that we must study.
You help your friend with her math homework and she helps you with english.
What is Trade?
A trade is an exchange of goods or money between 2 parties that both stand to gain from the exchange.
Average $120 billion per month
The Fed's purchases of bonds from the market in 2020.