334 Module 1 Re-cap

Regarding the web assignment in Module 1 where you checked some news stories:

Over the past 30 years (triggered by the cataclysmic events of the 70s), “economics” articles have migrated from the back of the paper to the front pages of the major newspapers. I believe the public is far better informed about economics than in the past. Perhaps the term “dismal science” is no longer applicable- these issues can actually be interesting and informative, and I believe the mainstream press is doing a much better job reporting these issues in language most people can understand! Now whether people take the time to sort through the confusing issues within the economy is another question.

Regarding the Module 1 written assignment:

In these on-line courses, it is necessary to ask students to dig into that rather expensive textbook to sort these questions out. I encourage questions on any of the concepts not readily understood. What follows is a brief summary of the main point each question was trying to elicit.

1. What, how and for whom are the 3 basic questions. The USA uses a system of prices and markets (and a certain amount of government involvement).
2. No country is self-sufficient these days. Think of all the things we regularly use that we do not produce in sufficient quantities.
3. Human capital (labor, entrepreneurship) is needed to employ the physical capital, and is so vital (just look at Japan).
4. Larger labor force, better technology, more efficiency and productivity would shift the curve.
5. There is always an opportunity cost in any economic action- someone has to pay.
6. Out of pocket expenses plus lost income, etc. must be considered (explicit plus implicit costs)
7. Would the extra income exceed the extra cost? (marginal analysis)
8. Nominal value of the $$ is constant, but real value falls because of lost interest and the effects of inflation.
9. Lots to consider- the costs associated with the trip(s), the value of your time, etc.
10. Unlikely, as the law of diminishing returns would kick in. As more workers are added to a fixed input, marginal product will fall (and ultimately become negative).

 Written assignments are graded tougher than the web assignments.

You can now also re-open your exam to see a full summary.

“Original document by Peter Turner licensed CC BY”