My info.
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Name: Xue(sherry) Qiao
Office: 83 Heady Hall
OH: MW 11-12
E-mail: sherryqi@iastate.edu
Course
web:http://www.econ.iastate.edu/classes/econ301/
qiao/
• TA: Yoon, sjyoon@iastate.edu
Syllabus
• Textbook: Jeffrey M. Perloff, Microeconomics, 3rd edition.
(Not required, but recommended)
• Grading:
1st mid-term:
25%
2nd mid-term:
25%
Final:
35%
Homework&in-class exercise 10%
Bonus
5%
Note: Exams will be cumulative, but more weighs will be put
on the later part.
Important Dates
• Tentative exam dates:
1st mid-term:
Friday, June 4
2nd mid-term:
Friday, June 25
Final:
Friday, May 9
Notes: I will put sample exams on-line.
There will be multiple-choice questions
and problem-solving questions in the exam.
Preparing for exams
• Best way to prepare for exams is to do the
following three things:
1. Attending the class: better understanding and inclass exercise.
2. Do the homework by yourself: help to find where
you are wrong and correct it.
3. Do the sample exams.
Notes: The questions on exam will be withdrawn
from the above three sources.
Chapter 1: Introduction
• What is economics?
• Positive VS Normative statement
• Mathematic review
What is economics?
• Definition.
Economics is the study of the allocation of
scarce resources.
• Branches of economics.
• Behaviors that we study.
• Some examples.
Positive VS Normative
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Defn’s
Differences.
Examples.
Why do we consider these in this course?
Some practice.
Positive statement
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Def: A testable hypothesis about cause and effect.
Deals with the question of what is
Do not involve value judgment or opinions.
Example:
1,000 jobs were lost because of free trade.
Consumers saved 1 million because of free trade.
Normative statement
• Def: A conclusion as to whether something is good
or bad.
• Deals with the question of what ought to be.
• Cannot be tested because a value judgment cannot
be refuted by evidence. (subjective).
• Example:
We should protect our industries.
We should support free trade.
Practice
• A cut in wages will reduce the number of people
who are willing to work.
• High interest rate prohibit many young people
from buying their first home.
• The government ought to behave in such a way as
to ensure that resources are used efficiently.
• Hong Kong government should increase its budget
allocation to reduce the number of illegal
immigrants from mainland of China.
More challenging practice
• Smoking is harmful to human.
• You need to stop smoking because smoking
is bad for you.
• You need a college education.
• One-third of the college-age population
wants to go to colleges at current prices.
Next topic
Supply and demand