İktisada Giriş final notları ilyas köse (ahmet çalışkan) econ101 - 1 - 1) Resources of economy: Land, Capital, Labor, Technology 2) Command Economy: Prices don’t signal buyer and seller behavior and there is no private ownership 3) The most fundamental economic problem is scarcity 4) Although macroeconomics is about whole economy; microeconomics is individual… 5) A surplus occurs when the price is higher than the equilibrium price and it causes the price to fall 6) If there is no shortage (üretim eksiği) and no surplus (üretim fazlası) at the equilibrium price; market is in equilibrium 0 0,5 1 1,5 2 2,5 0 5 10 15 20 25 Quantity (Bars) Price (liras/bar) shortage:9 surplus equilibrium supply demand eqbm price eqbm quantity (Üretim ve talepin eşit olduğu noktadır equilibrium) 7) The Law of Demand: If price increases, people want to buy less If price of benzene decrease, demand increases 8) The law of Supply: Sellers want to sell a produce more, when its price is high. If price of oil decreases, supply of car increases 9) When the market is not at equilibrium, price adjusts (decreases or increases) to bring the market into equilibrium (generraly by government) 10) Opportunity cost: An action is the value of the next-best alternative action 11) Production possibility frontier: There are some limited for a producer. He can not produces whatever he wants. Attainable point: possible produce area (points Z and W) Unattainable point: impossible to produce (point G) 12) If there are two goods and when one’s price falls people buy more another one, these goods are complement goods. (tamamlayıcı ürünler) (example: benzene and cars) High price great quantity supply Low price small quantity supply Örneğin, araç fiyatlarının düştüğü bir yerde benzine talep artar Opportuntiy cost’da bir sonraki olay önemlidir. Örneğin önce sinemaya gitmeyi, o olmazsa tiyatroya gitmeyi oda olmazsa evde oturmayı planlamışsanız; sinemaya gitmenin opportunity cost’u tiyatroya gitmektir High price small quantity demand Low price great quantity demand Bir malın fiyatı piyasa fiyatından fazla ise bu durum üretim fazlalığına neden olur ve fiyatı düşürür (Enflasyondaki değişim makro ekonomiyi ilgilendirirken, örneğin bir şirketin iflas etmesi mikro ekonomiyi ilgilendirir) A B C D E F 0 5 10 15 0 1 2 3 4 5 ?Z ?W ?G (Unattainable Point) P Q S D D 1 E 1 E P Q S S 1 D E 1 E ilyas köse (ahmet çalışkan) econ101 - 2 - 13) If there are tow goods and if one’s price increases, people choice another one, these goods are substitute goods. (example: benzene and lpg) 14) Price Floor (Taban Fiyatı) is a minimum price set and enacted by the government for a good (example: Tobacco, hazelnut, wheat, tea…) 15) Price Ceiling (Tavan Fiyatı) is a maximum price set and enacted by the government… (example: price ceiling for bread) 16) Short-run is the time period less than one year Long-run is long term is more than one year 17) Elasticity of demand price in change % demanded qty in change % PED = A goods price (absolute value) elasticity of demand (PED); - if more than 1, there is elastic (-1.50, -2, 2.25…) - if equal 1, there is unit elastic (1 or -1) - if less than 1, there is inelastic (-0.25, 0…) 18) Total Revenue - When demand is elastic; |PED| > 1, the manager should decrease the price to increase TR, - When demand is inelastic; |PED| < 1, the manager should increase the price to increase TR, - TR is maximized when |PED| = 1. At this point, if you increase or decrease price (a small amount), TR is unchanged. . 19) Demand is much more elastic in the long-run than in the short-run 20) Income Elasticity of Demand (IED) income in change % quantity in change % IED = - Luxury goods have an IED larger than 1 (laptops, cars…) - Necessity goods have an IED smaller than 1 (Tomatoes, eggs…) - Normal goods have positive IED (Luxury and necessity) - Inferior goods have negative IED (Bus ticket is an inferior good) 21) Cross-price elasticity of demand (CPED) j good of price in change demanded i good of qty in change % j) (i, CPED % = - Substitute goods have positive CPED - Complement goods have negative CPED 22) Marginal Benefit : A consumer’s demand curve shows her marginal (the last) benefit (MB) for every unit of a good consumed 23) Consumer Surplus is the area above the market price and below the demand curve 2 qty x price change CS = Society’s CS is sum of all individual CS’es 0 0,5 1 1,5 2 2,5 0 1 2 3 4 5 Quantity Price (liras/cookie) consumer surplus D=MB market price 24) Marginal Cost: A produce’s supply curve shows the marginal cost (MC) of producing the last unit. - If quantity increases, MC increases. 25) Producer Surplus is the area above the supply curve and below market price. 0 0,5 1 1,5 2 2,5 0 1 2 3 4 5 Quantity Price (liras/cookie) Producer Surplus (ex tr a benefit: 0.5) market price S=MC Extra Benefit = Consumer Surplus MB bir malın müşteriye verdiği hazzı, mutluluğu gösterir. Örneğin ucuz bir çikolatanın size vereceği psikolojik haz ile pahalı olanınki aynı değildir. Ya da çok susamış bir insanın ilk bardaktan alacağı haz ile ikinci ve üçüncülerde alacağı haz farklıdır Total Revenue (TR) = Price (P) X Number of sold (Q) TR= P x Q Örneğin benzine zam geldiğinde lpgye talep daha fazla olur. Çünkü herikiside birbirinin yerine kullanılabilen (yedek) mallardır ilyas köse (ahmet çalışkan) econ101 - 3 - 26) Welfare = Total Surplus 0 0,5 1 1,5 2 2,5 3 3,5 4 4,5 5 0 1 2 3 4 5 Quantity 100 th S=MC 1000 th eqbm qty 10000 th Price C.S P.S eqbm price D=MB MB = MC. This is where TS is maximized 27) The budget constraint describes combinations of goods that the consumer can buy and can’t buy. - Affordable point: possible to buy - Unaffordable point: impossible to buy 0 1 2 3 4 5 6 0 2 4 6 8 10 12 unaffardable K budget line A (4,3) B (6,2) L (9,3) 28) Slope of a line is the change in the vertical axis divided by the change in the horizontal axis. Ex: Slope between A? B= (4,3) ? (6,2) = 2 1 4 6 3 2 - = - - 29) Relative Price: Bir ürünün para cinsinden değilde, ürün cinsinden değeri. (Örneğin bir öğrenci biletinin iki tane ekmek etmesi gibi) 30) Marginal Rate of Substitution (MRS) Preferences exhibit (show) diminishing MRS. This is because consumers prefer more balanced combinations to more extreme combinations In general are preferred curves which are on the right side Point C is preferred to point A. 31) Indifference Curves The consumer is indifferent (kayıtsız olmak) to all the points on an indifference curve Slope of the indifference curve is the equal to the MRS Consumer is indifferent to all the points on an indifference curve. 32) Income Elasticity of Demand (IED) IED = income in change % demanded qty in changes % . 1) Point must be affordable (must on budget line) 2) It must maximize utility 3) Both must be satisfied Consumer who like only lahmacun Lahmacun Baklava U 4 U 2 U 1 Consumer who like only baklava Lahmacun Baklava Slope (Eğim) 1 2 1 2 x x y y x y - - = D D = Dki tane ürün olduğunu düşünelim. Biri baklava olsun biride lahmacun… Sizin belli bir bütçeniz var ve sizden paranız kadar lahmacun ve baklava seçmeniz isteniyor. MRS baklava alırken feda ettiğiniz lahmacunları gösteriyor. Çok açsanız mesela, daha çok lahmacun alıp, daha az baklavaya razı olursunuz… Total Surplus = Consumer S. + Producer S. or Marginal Benefit (MB) – Marginal Cost (MC) ilyas köse (ahmet çalışkan) econ101 - 4 - - When consumer’s income increases, her budget line shifts parallely outwards. If money income increases, a consumer's budget line shifts rightward and its slope does not change 33) Price Elasticity of Demand (PED) PED= price in change % demand of qty in changes % - When price of one produce increases 34) Profit is the total revenue minus its total cost Profit= Total Revenue – Total Cost (Price x Quantity) 35) Marginal Production of Labor (MPL) workers of Number hanges Output in hnages c c MPL = 36) Average Total Cost (ATC) - Fixed costs are those costs that do not change with the quantity of output produced. Ex: Rent, accountant’s wage, some taxes.. - Variable costs are those costs that do change with the quantity of output produced. Ex: Labor, Electricity, Transportation,... • Average Fixed Cost (AFC) : Output of Qty Cost Fixed Total • Average Variable Cost (AVC): Output of Qty Cost Variable Total • Average Total Cost (ATC) : AFC + AVC 37) Marginal Cost (MC) MC= Quantity in change % Cost Total in changes % 38) Competitive (Rekabet’e Dayalı) Market 4 characteristics of a perfect competitive market - There are many buyers and sellers - Good must be standard - There is no barriers to entry for another companies (free entry and exit) - Information should be perfect • Product differentiation decreases competition • More firms, more competition • More differentiation, less competition 39) economic profit = total revenue - total cost, including both explicit and implicit costs. accounting profit = total revenue - only the firm’s explicit costs. Total Cost = Explicit Costs + Implicit Costs