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LECTURE 1 OVERVIEW
? Economic Assumption
1. Rationality (economic man)
a. Selfish principle;
b. Efficiency principle;
Economic man + Invisible Hand=Economics
2. Pure Competitiveness
3. Complete information
? Economic activity: Participants
? Households
? Firms
? Governments
? The Themes of Microeconomics
? Allocation of Scarce Resources and Trade-offs
? Definition of Managerial Economics
? The application of economics theory and the tools of analysis of
decision science to examine how an organization can achieve its
aims or objectives most efficiently.
? Management: Decision making.
CPIbaseyear
Real Price x Nominal Price
current year
CPI
current year
? Contents of Study
Supply Demand
Firm Market Households
Market failure
1. Production;
Price
Marginal analysis
2. Costs; Discovery
3. Type of markets Information
Government Economics
4. Market microstructure
(game theory)
5. Corporation governance
? How to study Economics?
Observing economic phenomenon
Question?
Economic theory( literature review)
Model
Empirical investigati
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