Eco 1001: Principles of Economics

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Eco 1001 Principles of Economics

• 08/29/05
• Introduction to the course

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Contact Info.

• Instructor
• Suparna Chakraborty
• e-mail Suparna_Chakraborty_at_baruch.cuny.edu
• T.A.
• Atilim Murat
• e-mail atilimmurat_at_yahoo.com

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Temporary website

• www.econ.umn.edu/suparna
• Click on Teaching
• Click on
• Fall 2005- Eco 1001 Principles of Economics
• This website is temporary! I will update all
  notes on
• Blackboard when I get the access

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Course grades

• Two midterms (30 each) - 60
• Final Exam 40
• Exams are not cumulative multiple choice
• format
• No makeup exam for midterms except for
• absence on medical grounds
• (documentation required)

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Attendance policy

• Be in your seat within 15 min. of the beginning
  of class to be counted as present
• More than 5 absences will result in your being
  dropped from the course
• Turn off your cell phones, please!
• Attendance issues Mr. Joseph Grandone

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Practice Quizzes

• Strongly suggest that you practice the quizzes
• Available at www.swlearning.com/economics/mankiw/
  mankiw3e/mankiw3e.html
• Use the study guide for better preparation
• Atilim will provide extra quizzes for required
  sections of the course

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Clarification about schedule

• 08/29/05 Introduction (no assignment)
• 08/31/05 Chapter 1 (Ten principles of economics)
  Interactive quiz 1
• 09/07/05 Chapter 2 (Thinking like an economist)
  Interactive quiz 2
• Midterm 1 Ch 1, 2, 4, 5

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Calculus Refresher

• Simple derivatives
• y is a function of x y is the dependent
  variable and x is the independent variable

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General formula

• Suppose we have a function
• then,

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Linear function
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Example

• Suppose
• Derivative of y w.r.t. x at the point (1, 1)
• What is the equation of a straight line that is
• tangent to the curve represented by
• at the point (1, 1)?

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Solution

• Remember the formula of a straight line through a
  point (a, b), given slope?
• Then,

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Quick-tip

• At the point where a straight line is tangent to
  a curve, the slope of the line is equal to the
  derivative of the function representing the curve
  at that point.

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Intuition
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Derivatives and Economics?

• Yes, we need derivatives!
• We deal with questions like
• How does price change when quantity demanded
  changes?
• How will my income change if I work a few more
  hours?
• I am a producer. How will my cost change if I
  hire one more worker?

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Summary

• Derivatives can be interpreted as rate of change
  in y as x changes, where y is a function of x
• If y is a linear function of x, then derivative
  is a constant value (the slope of the function)
• Good source of notes
• http//www.math.uwo.ca/courses/Online_calc_notes/0
  50/