Hey ladies & gentlemen, these are some terms where I just couldn't understand thus hampering my meaning (and that includes watching videos, link HERE)
So I will list the words that I didn't grasp fully or was confused about in certain contexts (e.g. I knew what these words meant in some context but not in others)
Source: HERE
1. Utility: measure of relative satisfaction from or desirability of consumption of various good & services. In plain English = A scale of (probably on a graph) of how much satisfaction we get from a goods & services (product)
2. Neoclassical economics: Old school economic concepts.
3. Rationality: An old school econ, oops, neoclassical economics concept. It is precisely defined in terms of imputed utility-maximizing behavior under economic constraints.
Plain English: people getting the maximum satisfaction out of their limited resources (remember the PPF!!! Always go back to the PPF), in other words they are on a point at the PPF, not under. If they are under the graphed line, then it is irrational behaviour.
4. Indifference Curve: plots the combination of commodities that an individual or a society requires to maintain a given level of satisfaction.
Plain English: Please leave a comment, on how to put this in plain English, LOL, cuz I don't know!
5. Ordinal utility: states that while the utility of a particular good and service cannot be measured using an objective scale, a consumer is capable of ranking different alternatives available.
Plain English: Basically it's how a customer rates how much one product over the other (remember the ~ indifferent to, and > prefers) using the scale system (like 1 to 5 or 1 to 10 or 4 stars, etc)
6. Cardinal utility: The magnitude of utility differences is treated as an ethically or behaviorally significant quantity. (Remember the SG, pg 69, Example 2)
Plain English: How much more does someone like A over B over C, etc.
7. Transitive: Noting a relation in which one element in relation to a second element and the second in relation to a third element implies the first element is in relation to the third element, as the relation “less than or equal to.”
Plain English: (Personally this word drove me the craziest as to what it meant). If there's product A & B, and if you prefer one over the other, then it's transitive, so you need 2 or more items for basis of comparison.
8. Complete: Of or pertaining to a set in which every fundamental sequence converges to an element of the set.
Plain English: (This also drove me crazy), it basically means when the comparisons are done, e.g. A > B > C, it is transitive because you're comparing and it's complete because you finished/concluded the comparison :)
I hope this was helpful, if you have any questions or see any mistakes please feel free to leave a comment and I'll correct them or if you have a simpler explanation, please leave a comment.
Thursday, October 30, 2008
My video for ya, Comparative, Absolute Advantage, how to figure Opportunity Cost
To download the Excel I use in this video, click HERE
If you still have any questions, please don't hesitate to leave a comment or feel free to email me or hit me up on Skype
If you still have any questions, please don't hesitate to leave a comment or feel free to email me or hit me up on Skype
Comparative Advantage Document and Video
Monday, October 27, 2008
Study Notes from Last Weekend
Page 62 to 67 of the SG, Chapter 2:
2. Rationality - This is a neo-classical economic concept (modern day vernacular would be Optimization or Utility), in a nutshell means Theory of Individual Behaviour and Motivation (Supply & Demand), so we can say this is a Micro Economic Concept, so for those of you not reading the main text, just read the chapter in other texts that talk about individual/household choices.
The word CONSTRAINT, once again shows up here, remember it's a fancy way of saying "LIMIT" in Economics. That means we could only (given there are 2 products) produce so many combinations of salads or pastas. IF it's our allowance/paycheck, then we can only buy so many combinations of pizza or sushi or pizza and beer :)
Rational in Economics term does not mean "NORMAL" and irrational in Economics does not mean "NOT NORMAL." In Economics, it just means we're not producing/spending at a point on the graph (Irrational) or we are producing/spending at a point on the graph (rational).
Page 63: Here the ability to produce increased, this can be because the wife hit him in the head or we just learned how to make salads & pasta faster (technological efficiency/improvement). When it comes to the pizza/sushi, pizza/beer combo, then it would mean we won the lottery, got a raise or changed jobs and got a bigger paycheck. So our individual rationality (the graph/curve) would change (see page 64 of the SG). When you become confused about this graph, just go back to the PPF, when production is not occurring at a point on the line of the graph, then you're not at maximum utilitzation, and if you're not at the point of the line of the individual rationality graph then you're being irrational.
Please refer to page 63: Inconsistency - This in economics term is not when an athlete has a great game one day and tanks it the next. This refers to our changes in taste or preferences :)
Page 65 - Preferences - This is to measure ranking of one product over another, not quantifying her satisfaction/pleasure. To express:
A > B = A is preferred to B
A ~ B = indifferent between A & B
Let's clear the misunderstanding of the word indifference here. It does not necessarily mean that you're indifferent (in the dictionary sense), it would mean that you don't have a preference of one item over another, or you like both equally the same.
e.g.
iPhone > all other cell phones = this means I prefer the iPhone over all other cell phones (unfortunately it's unavailable in South Korea)
Brand A Cell Phone ~ Brand B Cell Phone = I have no preference over any other brands of cell phones.
Let's rank this:
iPhone > Brand A Cell ~ Brand B Cell
I prefer the iPhone over Brand A Cell Phones & Brand B Cell Phones, but am indifferent to Brand A Cell between Brand B Cell.
Hope this was helpful.
One final note, only real numbers can be expressed here (good news for us at least mathematically)
2. Rationality - This is a neo-classical economic concept (modern day vernacular would be Optimization or Utility), in a nutshell means Theory of Individual Behaviour and Motivation (Supply & Demand), so we can say this is a Micro Economic Concept, so for those of you not reading the main text, just read the chapter in other texts that talk about individual/household choices.
The word CONSTRAINT, once again shows up here, remember it's a fancy way of saying "LIMIT" in Economics. That means we could only (given there are 2 products) produce so many combinations of salads or pastas. IF it's our allowance/paycheck, then we can only buy so many combinations of pizza or sushi or pizza and beer :)
Rational in Economics term does not mean "NORMAL" and irrational in Economics does not mean "NOT NORMAL." In Economics, it just means we're not producing/spending at a point on the graph (Irrational) or we are producing/spending at a point on the graph (rational).
Page 63: Here the ability to produce increased, this can be because the wife hit him in the head or we just learned how to make salads & pasta faster (technological efficiency/improvement). When it comes to the pizza/sushi, pizza/beer combo, then it would mean we won the lottery, got a raise or changed jobs and got a bigger paycheck. So our individual rationality (the graph/curve) would change (see page 64 of the SG). When you become confused about this graph, just go back to the PPF, when production is not occurring at a point on the line of the graph, then you're not at maximum utilitzation, and if you're not at the point of the line of the individual rationality graph then you're being irrational.
Please refer to page 63: Inconsistency - This in economics term is not when an athlete has a great game one day and tanks it the next. This refers to our changes in taste or preferences :)
Page 65 - Preferences - This is to measure ranking of one product over another, not quantifying her satisfaction/pleasure. To express:
A > B = A is preferred to B
A ~ B = indifferent between A & B
Let's clear the misunderstanding of the word indifference here. It does not necessarily mean that you're indifferent (in the dictionary sense), it would mean that you don't have a preference of one item over another, or you like both equally the same.
e.g.
iPhone > all other cell phones = this means I prefer the iPhone over all other cell phones (unfortunately it's unavailable in South Korea)
Brand A Cell Phone ~ Brand B Cell Phone = I have no preference over any other brands of cell phones.
Let's rank this:
iPhone > Brand A Cell ~ Brand B Cell
I prefer the iPhone over Brand A Cell Phones & Brand B Cell Phones, but am indifferent to Brand A Cell between Brand B Cell.
Hope this was helpful.
One final note, only real numbers can be expressed here (good news for us at least mathematically)
Thursday, October 23, 2008
Telephone interview with Paul Krugman (2008 Nobel Prize Winner for Economics)
Telephone interview with Paul Krugman recorded immediately after the announcement of the 2008 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, 13 October 2008. The interviewer is Adam Smith, Editor-in-Chief of Nobelprize.org.
Monday, October 20, 2008
Optimization and Equilibrium, Supply and Demand Video Lecture
For those of you on Chapter 2 of the Study Guide, it discusses Optimization and Equilibrium, Supply and Demand, so click HERE for the streaming video (need Real Player), but I recommend Real Alternative aka Media Player Classic, click HERE for the download page
Once again the link for the video lecture is HERE
Once again the link for the video lecture is HERE
Friday, October 17, 2008
Comparative Advantage
Related to page 44 of the Study Guide, Chapter 1, Specialization and Trade, I'll also post a video on Youtube later.
Thursday, October 16, 2008
Production Possibility Frontier (PPF) aka Transformation Curve
Hey guys, I was going crazy the past coupla days trying to figure out how to get the constraint, finally figured it out (told you math is not my strong suit), here's the vid I uploaded to YouTube
Wednesday, October 15, 2008
Terms we should remember
See Chapter 1 of the SG
Page 38.
1. Modelling
2. logical truth
3. Production Possibility Frontier (PPF) aka Transformation Curve.
4. means of production
5. constrained
6. technology (in economic terms)
Page 40:
Remember the formula 1/2Y + X is equal to or less than 100
Page 42:
1. Productive efficiency
2. productive efficient
3. Opportunity cost
Page 43
1. Opportunity cost formula
2. binding
3. Inefficient allocations
3. best alternative production
Pa 50:
1. average
2. marginal opportunity cost
3. margin
4. marginal.
I'm not a big proponent of memorization method of studying BUT if we don't know what these words mean and understand the concept of them we'll never get going in our studies in economics. So when we talk to each other let us speak in this language to one another because if you use a word in everyday language then you'll have it memorized forever. Just like when I learned Japanese & Korean & Spanish. Talk this language to your friends, b/f, g/f family, etc. :)
Page 38.
1. Modelling
2. logical truth
3. Production Possibility Frontier (PPF) aka Transformation Curve.
4. means of production
5. constrained
6. technology (in economic terms)
Page 40:
Remember the formula 1/2Y + X is equal to or less than 100
Page 42:
1. Productive efficiency
2. productive efficient
3. Opportunity cost
Page 43
1. Opportunity cost formula
2. binding
3. Inefficient allocations
3. best alternative production
Pa 50:
1. average
2. marginal opportunity cost
3. margin
4. marginal.
I'm not a big proponent of memorization method of studying BUT if we don't know what these words mean and understand the concept of them we'll never get going in our studies in economics. So when we talk to each other let us speak in this language to one another because if you use a word in everyday language then you'll have it memorized forever. Just like when I learned Japanese & Korean & Spanish. Talk this language to your friends, b/f, g/f family, etc. :)
Great Helpful Site
Discovered a site that explained the PPF in plain English, click HERE
Chapter 1 of the study guide talks about the PPF, so for a great explanation, click HERE
A little note on the opportunity cost formula. Remember Rise over run in math? Change in Y over Change in X??? Think of it as the same but without the "Change in", so it would be
Y/X
Y= What we had to give up
X = What we got in return
So the opportunity cost of a Unit of X = Y/X
Any questions please post a comment here or send me an email or post your questions here:
http://bscmanagement.yuku.com
Chapter 1 of the study guide talks about the PPF, so for a great explanation, click HERE
A little note on the opportunity cost formula. Remember Rise over run in math? Change in Y over Change in X??? Think of it as the same but without the "Change in", so it would be
Y/X
Y= What we had to give up
X = What we got in return
So the opportunity cost of a Unit of X = Y/X
Any questions please post a comment here or send me an email or post your questions here:
http://bscmanagement.yuku.com
Sunday, October 12, 2008
A new community on Yansa for BSc Management majors
Hey guys, with the limit of my blog and email, I created this community HERE so we can post our homework, discussions, answers, etc here, let's meet here for discussions
Saturday, October 11, 2008
Stanford's Entrepreneurship Corner Webpage
Great audio and video resources especially for those of you that want to get into the Venture game, I definitely do!!! Anyways click HERE to take you to the webpage
David Rothkopf Biography
David Rothkopf
Author
Author
David Rothkopf is the President and CEO of Garten Rothkopf, an international advisory firm specializing in emerging market investment and risk management services. A major focus of Garten Rothkopf's work is on new trends in Asia and Latin America, and the growth of alternative energy.
Previously, Rothkopf was Founder, Chairman and CEO of Intellibridge, a firm offering open-source intelligence and advisory services on international issues, after serving for two years as Managing Director of Kissinger Associates.
Rothkopf also served as a Senior Trade Official in the Clinton Administration. In this capacity, he played a central role in developing and directing the Administration's groundbreaking Big Emerging Markets Initiative.
A prolific writer, David Rothkopf is the author of more than 150 articles on international themes for publications including the New York Times, Washington Post, Financial Times, Foreign Affairs, and others. Among his more popular publications are Running the World: The Inside Story of the NSC and the Architects of American Power, and his most recent book, Superclass: The Global Power Elite and the World They Are Making, which examines the power of global elites and how they are shaping globalization.
Related Links: HERE
Last Updated: Wed, Apr 16, 2008
Stanford's Entrepreneurship Corner: David Rothkopf Part 5
European Advances in Green Energy: More info HERE to download click HERE
If the people who set the prices are the same people who set the production levels, then it's not really a market, and true supply and demand are a farce. David Rothkopf, author of Superclass: The Global Power Elite and the World They are Making, says that Europe is leading the planet in green energy technology thanks to government subsidies, including biofuels and wind energy. Rothkopf is optimistic that the US will eventually adopt these policies toward energy, though our current system is corrupted by nearsighted, pure financial interest.
If the people who set the prices are the same people who set the production levels, then it's not really a market, and true supply and demand are a farce. David Rothkopf, author of Superclass: The Global Power Elite and the World They are Making, says that Europe is leading the planet in green energy technology thanks to government subsidies, including biofuels and wind energy. Rothkopf is optimistic that the US will eventually adopt these policies toward energy, though our current system is corrupted by nearsighted, pure financial interest.
Stanford's Entrepreneurship Corner: David Rothkopf Part 4
Redefining Community - And Holding it Accountable: More info HERE
to download click HERE
If we don't recognize that the unequal distribution of wealth is unsustainable, then, perhaps, says author David Rothkopf, more sinister political tensions and divisions will ensue. He advocates that the planet needs to reflect upon why we have one set of rules for our geographic community, and a different set of rules for institutions, among them the for-profit sector. Only when we hold the powerful players in economics responsible for contributing to the welfare of our community as we would a neighbor, says Rothkopf, will the interests of the globe at large become balanced.
to download click HERE
If we don't recognize that the unequal distribution of wealth is unsustainable, then, perhaps, says author David Rothkopf, more sinister political tensions and divisions will ensue. He advocates that the planet needs to reflect upon why we have one set of rules for our geographic community, and a different set of rules for institutions, among them the for-profit sector. Only when we hold the powerful players in economics responsible for contributing to the welfare of our community as we would a neighbor, says Rothkopf, will the interests of the globe at large become balanced.
Stanford's Entrepreneurship Corner: David Rothkopf Part 3
The Powerful Alignment of Interests: More info HERE to download click HERE
Sheer brainpower, strength in numbers, and good old fashioned networking is how the nature of world influence is established. Skewed and disproportionate, modern power structures that regulate global problems happen only when the elite meet, says author David Rothkopf. And decisions made based on these meetings often do not adequately represent the people or the interests that they are meant to serve.
Sheer brainpower, strength in numbers, and good old fashioned networking is how the nature of world influence is established. Skewed and disproportionate, modern power structures that regulate global problems happen only when the elite meet, says author David Rothkopf. And decisions made based on these meetings often do not adequately represent the people or the interests that they are meant to serve.
Stanford's Entrepreneurship Corner: David Rothkopf Part 2
The Rise of the Superclass: More info HERE to download click HERE
We can't legislate against historical trends in the global age, but we can look more closely at the well-networked superclass - those who have broad influence across international borders on a regular basis. The Superclass has money, power, and influence - but it's woefully short on ethics in the global interest. Author David Rothkopf describes this influential core of the global power structure and stresses that economic prosperity can't be the only metric of a civilization's success.
We can't legislate against historical trends in the global age, but we can look more closely at the well-networked superclass - those who have broad influence across international borders on a regular basis. The Superclass has money, power, and influence - but it's woefully short on ethics in the global interest. Author David Rothkopf describes this influential core of the global power structure and stresses that economic prosperity can't be the only metric of a civilization's success.
Stanford's Entrepreneurship Corner: David Rothkopf Part 1
80/20 Rule: More info HERE To Download Click HERE
Just twenty percent of the members in any group or social system own eighty percent of the assets, indicative that scale indicates a growing concentration of power. The top 2,000 companies employ and influences a million people in the modern world, says author David Rothkopf. With cross-ownership and networking in all circles - business, military, religion, and the Internet among them - a few succeed, but the majority of participants within any given system are marginal.
Just twenty percent of the members in any group or social system own eighty percent of the assets, indicative that scale indicates a growing concentration of power. The top 2,000 companies employ and influences a million people in the modern world, says author David Rothkopf. With cross-ownership and networking in all circles - business, military, religion, and the Internet among them - a few succeed, but the majority of participants within any given system are marginal.
Thursday, October 9, 2008
Tuesday, October 7, 2008
Unit information sheets
We provide unit information sheets to help you choose which units to study. The sheets include key information such as the syllabus, on which you’ll be examined; the unit aims and objectives; learning outcomes; an essential reading list; prerequisite and exclusion information; and method of assessment.
My theory & speculation on what will be on the test based on the Info Sheet:
General Equilibrium - the IS-LM model.
Prices, Inflation, & Unemployment - Aggregate Demand (AD) in the price output plane, the problems with deriving Aggregate Supply (AS); the Keynsian & the classical AS.
The Phillips Curve
Macro - Aggregation
Read the rest of the Info sheet, a very big clue on at least which graphs, math formulas to remember :)
My theory & speculation on what will be on the test based on the Info Sheet:
General Equilibrium - the IS-LM model.
Prices, Inflation, & Unemployment - Aggregate Demand (AD) in the price output plane, the problems with deriving Aggregate Supply (AS); the Keynsian & the classical AS.
The Phillips Curve
Macro - Aggregation
Read the rest of the Info sheet, a very big clue on at least which graphs, math formulas to remember :)
Monday, October 6, 2008
Supplement for 02 Intro to Econ for 2008/2009
To download, click HERE I guess this means the theme of the test may change next year
Please use the following info:
ID: uolexternalstudent
p/w: lseexternal
Please use the following info:
ID: uolexternalstudent
p/w: lseexternal
Micro & Macro Econ Resource
Syllabus for October
OK guys, I admit it, I'm guilty of procrastinating on this particular subject :( I should have started last month but I've been good in the sense that I've been listening to the mp3 lectures of Macro & Micro Econ from UC Berkeley
To listen to or watch the streaming video of the lectures click on the class below: You have the option of either downloading the mp3 or watch the video streaming.
Micro Econ
Macro Econ
Now to the fun part, the syllabus :) I will refer to the Main Text as MT and the Study Guide as SG and if there are more than 1 MT readings, I will list by author or if you have alternative books, I will say either Macro, Micro or just Econ to represent the plain Economics text :)
*NOTE: According to the new SG supplement, Blake's A Short Course of Economics is no longer necessary :) WOO HOO!!!
Oct 6 to Oct 8
SG Intro & Technical preface (if you know this already, go ahead & skip, but I have to reacquaint myself, I don't think I'm the only one).
Oct 9 to 12
MT: LC Ch 1 to 2, & BFD: Ch 1 to 2 (Economics Books)
or McTaggarts Econ (ISBN 9780733973253) click HERE for details, Ch 1 to 2
SG: ppg 31 to 44 (until end of section 2)
Oct 13 to 15:
SG ppg 44 to 56
Homework: Do all the activities & questions
Oct 16 to 20:
Discuss MT questions & problems and SG questions & problems.
Go ahead and start reading Chap 2 of the SG (just skim & get somewhat familar with it)
Oct 21 to 22:
SG ppg 57 to 61
MT (SG pg 57): LC: Ch 5, Ch 3, pp 38-44 & Ch 4, pp 65-74 & 76-85.
BFD: Ch 5, Ch 3, pp 40-42 & Ch 4, pp 55-68
EL (Micro): Ch 2, pp 13-24 & 23- 40 and Chp 3
For those of you re-sitting Econ, here's the breakdown of the Chapters:
LC: Chapter 5 = Consumer Choice: Indifference Theory
Chapter 3, pg 38 to 44: Demand (stocks & flow and weather matters)
Chapter 4: pg 65 - 74: Elaticity of D & S
pg 76 - 85: Elaticity matters
BFD: Ch 5 = Consumer choice & demand decisions
Ch 3, pp 40-42 = What, how & for whom?
Ch 4, pp 55-68 = Elaticities of S & D
EL (Micro): Ch 2, pp 13-24 = The basic theory of consumer choice (& an algebraic solution)
pp 32 - 40 = The demand curve (summary & problems)
Ch 3 = Money income & real income
or McTaggart Chapt 8 (Household choices)
Mankiw, pg 94 - 104 Demand Elasticity
141 - 147 Consumers & Demand Curve
I will post the UC Berekely streaming video lectures & download mp3 lectures that work in conjunction with these reading materials.
Oct 23 to 24:
SG 62 - 78 (use the weekend to catch up if you have to)
Reading for page 62, according to the supplement changed to the following:
BFD - Ch 5, pp 77-82 Market Deamnd Curve, Complement & Substitution, Transfer in Kind, Summary & Review
LC - Ch 5, pp 92 - 96 - Consumer optimization w/o measurable utility
I will post more later, this supplement is killing me!! It will be the same page, but I will edit and add more
To listen to or watch the streaming video of the lectures click on the class below: You have the option of either downloading the mp3 or watch the video streaming.
Micro Econ
Macro Econ
Now to the fun part, the syllabus :) I will refer to the Main Text as MT and the Study Guide as SG and if there are more than 1 MT readings, I will list by author or if you have alternative books, I will say either Macro, Micro or just Econ to represent the plain Economics text :)
*NOTE: According to the new SG supplement, Blake's A Short Course of Economics is no longer necessary :) WOO HOO!!!
Oct 6 to Oct 8
SG Intro & Technical preface (if you know this already, go ahead & skip, but I have to reacquaint myself, I don't think I'm the only one).
Oct 9 to 12
MT: LC Ch 1 to 2, & BFD: Ch 1 to 2 (Economics Books)
or McTaggarts Econ (ISBN 9780733973253) click HERE for details, Ch 1 to 2
SG: ppg 31 to 44 (until end of section 2)
Oct 13 to 15:
SG ppg 44 to 56
Homework: Do all the activities & questions
Oct 16 to 20:
Discuss MT questions & problems and SG questions & problems.
Go ahead and start reading Chap 2 of the SG (just skim & get somewhat familar with it)
Oct 21 to 22:
SG ppg 57 to 61
MT (SG pg 57): LC: Ch 5, Ch 3, pp 38-44 & Ch 4, pp 65-74 & 76-85.
BFD: Ch 5, Ch 3, pp 40-42 & Ch 4, pp 55-68
EL (Micro): Ch 2, pp 13-24 & 23- 40 and Chp 3
For those of you re-sitting Econ, here's the breakdown of the Chapters:
LC: Chapter 5 = Consumer Choice: Indifference Theory
Chapter 3, pg 38 to 44: Demand (stocks & flow and weather matters)
Chapter 4: pg 65 - 74: Elaticity of D & S
pg 76 - 85: Elaticity matters
BFD: Ch 5 = Consumer choice & demand decisions
Ch 3, pp 40-42 = What, how & for whom?
Ch 4, pp 55-68 = Elaticities of S & D
EL (Micro): Ch 2, pp 13-24 = The basic theory of consumer choice (& an algebraic solution)
pp 32 - 40 = The demand curve (summary & problems)
Ch 3 = Money income & real income
or McTaggart Chapt 8 (Household choices)
Mankiw, pg 94 - 104 Demand Elasticity
141 - 147 Consumers & Demand Curve
I will post the UC Berekely streaming video lectures & download mp3 lectures that work in conjunction with these reading materials.
Oct 23 to 24:
SG 62 - 78 (use the weekend to catch up if you have to)
Reading for page 62, according to the supplement changed to the following:
BFD - Ch 5, pp 77-82 Market Deamnd Curve, Complement & Substitution, Transfer in Kind, Summary & Review
LC - Ch 5, pp 92 - 96 - Consumer optimization w/o measurable utility
I will post more later, this supplement is killing me!! It will be the same page, but I will edit and add more
Intro to Econ Power Point please use the universal account I created:
ID: uolexternalstudent
p/w: lseexternal
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