Website for Course Materials

1
Website for Course Materials

• http//newton.uor.edu/facultyfolder/gerald_groshek
  /

2
Graphs
3
Cartesian Plane
,
-,
,-
-,-
4

• The formula for the slope of a line is
• Y2-Y1 X2-X1
• The easiest way to complete this exercise is to
  use the intersection of the line with the grid
  marks. Find the intersection to get the x or y
  values. Then do the same thing at another
  intersection.

5
How many hours does it that to earn 1 grade
higher?
What if it now takes 12 hours to earn a grade of
C?
6
What if it now takes 6 hours to earn 1 grade
higher?
7
Is the relationship linear?
8
(No Transcript)
9
Opportunity Costs

• How much time could you spend on homework in a
  day? How much do you spend? How do you decide?
• We discussed your opportunity cost in attending
  this class. For most students it does not
  include the financial cost of tuition. Is the
  opportunity cost of university education to
  society the same as your opportunity cost? How
  might this be measured?

10
PPFSuppose either computer or televisions can be
assembled with the following labor inputs

• Units Produced
• 1
• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10

• Total Labor Used
• 3
• 7
• 12
• 18
• 25
• 33
• 42
• 54
• 70
• 90

What is the Opportunity cost of the 8th computer?
Draw the PPF if labor is limited to 54 workers.
11
Production Possibilities Curves
12
11
10
9
8
7
6
Televisions
5
4
3
2
P54
1
0
0
1
2
3
4
5
6
7
8
9
10
11
12
Computers
Draw the PPF if immigration increases labor by 36
workers.
12
Production Possibilities Curves
12
11
10
9
8
7
6
Televisions
5
4
3
P90
2
P54
1
0
0
1
2
3
4
5
6
7
8
9
10
11
12
Computers
Draw the PPF if innovation increases productivity.
13
Production Possibilities Curves
12
11
10
9
8
7
6
Televisions
PT
5
4
3
P90
2
P54
1
0
0
1
2
3
4
5
6
7
8
9
10
11
12
Computers
14

• How might a nations production possibilities be
  affected by
• a. A decrease in taxes.
• b. An increase in government regulation.
• c. An increase in military spending.
• d. An increase in college tuition
• e. Faster, more powerful electronic chips

15
True or False

• A higher GDP means an increase in the standard of
  living.
• A high per capital GDP is an imperfect measure of
  the standard of living.
• Investors make an economic investment when they
  invest in the stock market.
• Economic investment occurs only with the tangible
  creation or maintenance of capital goods.
• Exported goods are produced in Slovakia and
  therefore are included in the GDP.
• Exported goods are not included in the GDP
  because Slovakians do not consume them.