Economics: 09/08/2011 Introduction: What is economics? o The science of how individuals in society choose to use scarce resources.

. Resources: need in order to make things 3 Groups: Natural resources: coal, solar, oil, water, forests, etc. Labor: physical and mental talents people contribute to production Capital (not money): produced goods that can be used as inputs for further production Scarcity: not enough resources to satisfy everyones need. Consequence: competition, forces people to make a choice (cant have everything) Micro vs. Macroeconomics o Microeconomics: behavior and choices at relatively small units: Ex: an individual, a firm, an industry, a market o Macroeconomics: entire economy

MATH REVIEW 1. A: calculate percentage change X2 X1 / X1 x 100% 2. Variations of an equation B: X/Y = Z or X = ZY or

Y = X/Z

3. Variation between 2 variables 4. Relationship between 2 variables a. Positive/direct relationship: variable change in the same direction. 5. Negative or Inverse relationship: X and Y change in opposite directions. 6. Independent Relationship: when one variable changes and the other does not change. 7. Equation of a Line: Y = MX + B a. Slope of a line is constant or it changes from one point to another i. B = Y intercept ii. M = slope iii. Slope = change in Y / change in X 8. Find the slope of a curve by using a Derivative a. Steps

9.

10. 11. 12. 13.

i. Draw a tangent line ii. Calculate slope of the tangent line (slope of the curve at point A) Change of slopes along a curve a. Slope is positive and decreasing (slope gets flatter) i. Fast increase to a slow decrease (tangent lines get flatter and flatter) b. Slope is positive and increasing (slope gets steeper) i. Tangent lines get steeper Negative slope increases in absolute value Negative slope decreases in absolute value Mountain slope first positive then negative Cup slope first negative then positive