ECO 211 - Microeconomics

Day 1

1. Answer the following:

On the 3" x 5" card provided, answer the following question:

Assume that a hurricane has struck the coast of Florida causing massive destruction. As a result, the prices of many products like hotel rooms, water, plywood, etc. increase significantly. For example, let's say the price of plywood increases from a price of $10 a sheet before the hurricane to $30 a sheet after the hurricane.

QUESTION: Should the Florida government pass a law keeping the price of these products (like plywood) to their levels before the hurricane struck? OR What should the government do, if anything?

• http://netra.sptimes.com/Weather/92698/Gouging_complaints__r.html
• http://www.sptimes.com/Weather/92598/Pinellas_put_on_price.html

2. What is MICROECONOMICS ?

Microeconomics News:

• http://cgi.cnnfn.com/output/pfv/2001/01/15/companies/wires/motorola_wg/
• http://cgi.cnnfn.com/output/pfv/2001/01/16/worldbiz/nestle/
•  

Macroeconomics News:

• http://cgi.cnnfn.com/output/pfv/2001/01/12/economy/wires/economy_clinton_wg/
• http://cgi.cnnfn.com/output/pfv/2001/01/11/economy/jobless/

MICROECONOMICS studies the INDIVIDUAL parts of an economy:

• individual industries, products and businesses
• for example:
  • why does the price of plywood increase
  • why are wages increasing
  • what are the effects of Nestle buying Ralston-Purina
  • Why will Motorola lay off 2000 workers in Harvard, IL
• some believe microeconomic principles form the foundation of economic theory

MACROECONOMICS studies the economy as a whole:

• unemployment
• inflation
• economic growth

3. Class roster and attendance

4. Class Web Page

• http://www.harpercollege.edu/mhealy/eco211/michome.htm

5. Go to Chapter 1: What is Economics?