Students are introduced to the course information and course requirements.
Study goals: Understand and describe the basic mechanism of the economy and the discipline of economics. Understand the concept of scarcity and opportunity cost. Discuss the major branches of economics: positive, normative, microeconomics, macroeconomics. Distinguish between goods and services, rare and free goods, inputs and outputs.
Students should be able to: - Discuss the purposes and functions of markets. - Explain how a demand curve illustrates the law of demand and distinguish between a change in demand and a change in quantity demanded. - Explain how a supply curve illustrates the law of supply and distinguish between a change in supply and a change in quantity supplied. - Locate the equilibrium point on a supply and demand diagram. - Explain the consequences of shortages and surpluses in markets and how they are eliminated in free competitive markets.