Transcript Lecture 1

Welcome to Macroeconomics
Dr. Mohammad Alomar
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Macroeconomics
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What are our needs?
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Goods and services.
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How to get goods and services?
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Production factors
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Production Factors:
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1- Land
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2- Labor
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3- Capital
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The Economic Needs:
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What are our needs?
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How many goods and services?
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Can we state them all?
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Scarcity:
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Can we satisfy all our needs?
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Limited resources.
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Economic needs exceed our limited
resources.
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What is Economics?
A social science that is concerned with
the efficient use of scarce resources to
satisfy the maximum amount of our
(economic) needs.
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Scarcity and Choice:
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Since resources are scarce, goods and
services produces cannot satisfy all of
our needs.
Therefore: must face a problem of
Choice:
Must decide what we produce and what
we must give up.
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The Opportunity Cost:

The other goods and services that we
gave up in order to produce good (X).
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What is your opportunity cost?
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Examples.
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The mechanism to solve the economic
problem: different economic systems
1234-
Capital economy
Socialism
Mixed
Islamic
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What is Macroeconomics?


Examines the economy as a whole or
the aggregates (a collection of
economic units): such as the
government sector, household sector,
and business sector.
Total outputs, total employment, total
income, aggregate expenditure, general
price level.
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What is Microeconomics?

Microeconomics:
Examines a specific economic units
such as consumers, producers, an
industry.
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