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Ok.
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Welcome.
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...kind of train this is economy one I know many of you are
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here to try to decide whether to take his class so
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we're going to do today is talk about why you might want to take it
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...the requirements are and then I think there's a lot of you they're still trying to get into the class
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so we're going to talk about enrollment issues and how you might have one last chance to get
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in our...I will be in charge of that okay so I think?
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The best motivation for taking this class is just to try to
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read the newspaper it's astonishing the number of things that come up with a newspaper that
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without any economic training you wouldn't know what the world are talking about just one
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of just recently ftc is opening an anti-trust
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investigation against google and if you knew about this google's perhaps going to be
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accused of breaking the law having to do with monopoly control.
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How can that be everybody loves google?
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So, you should be asking yourself what the world is an anti-trust investigation what
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are anti-trust laws antitrust law shortly r laws that prevent the growth
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...exercise of monopoly our.
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So, we're going to study
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in this class why it is that we need laws to protect us from the growth and exercise
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...monopoly our what exactly those laws are what they allow
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and what they don't law allow and how that's played out in a
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variety of situations you probably remember microsoft was also slapped with
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a large anti-trust lawsuit so, it really seems like firms
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that become very successful...is a country have a very
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skits the position towards them we start suing them why is that?
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We're
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going to study that that's one of the main things that microeconomics has to say about the world.
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I don't know...you saw this but the july jobs report number of jobs that
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were created in july which is the last month that we
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have data on actually was higher than expected.
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How many of you saw this...very few people who was
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lost among all the disaster reporting about the downgrade of
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...national mortgage ratingcredit rating and,
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it happened exactly the same time...just kind of slipped under the radar but
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this might actually meaning that were slightly pulling out of this recession we've
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been this bad economic time this time we've had since two
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thousand eight has been the worst since the great depression of the thirties
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it's possible we're going to go into a second recession a double dip
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there are signs that indicate that might be happening it might not ...going to study
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...this course is what causes job growth what causes unemployment
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and importantly what can we do about it what can the government what steps can
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the government take to try to stabilize our economy and
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...grow out of the recessions that we sometimes end up in
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you've probably seen practically all the presidential candidates have some planner another on
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what we're supposed to do about the deficit and about jobs hopefully this course
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will help you to evaluate those and make your decisions on what you
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think which candidates are making meaningful statements and which ones aren't?
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This is my favorite...the last one to talk about.
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Chatted conviction americanism trash smuggler.
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You know, the trash that we throw-away.
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We have to pay someone to come pick it up we pay the utility come, you know,
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the trash utility pick it up and then they have to pay someone to get rid of it okay
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this enterprising entrepreneur actually bought a boat
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and enormous ship and was paid.
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To a...promised to get rid of trash and he put it into the
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ship and hold it over to china and just downloaded
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...downloaded...it into some harbor
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in china in hopes of not getting caught all of course that bridge chinese law to
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...shows is the incredible amount of money
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...to be made in simply dealing with the trash that we create as an economy therefore
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within the ship it wasn't just any old trash.
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These were soiled baby diapers.
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The entire thing was filled with soiled
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...could you imagine the chinese officially open the whole.
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The smell came...
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Anyway.
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The active living the active having
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children actually creates pollution we need to somehow deal with this we create
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pollution all forms of are living and we need to figure out how to handle that
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in our economy so that's what we're going to study in this course how to make the right
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decisions about the degree ofpollution that...need to...what to have how
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to protect the environment at the same time that we keep our economy growing that's the main topic of
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economics and the topics that we're discussing this class you can go on practically all the paper
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in newspapers are filled with topics that have to do with things that we're going to study in this class.
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Okay,
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so, back to the mundane issue of what actually is economics this is the way
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are textbook defines it practically all textbooks define
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economics as a field is the study of how economies
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you scarce resources to produce valuable commodities
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and distribute them among people very broad definition but it can
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broke be broken down into three parts.
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What goods are produced what resources
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are used to produce them and then who gets to consume those goods are basically the issues that
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we're trying to decide how to do and how doesn't happen
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in an economic system the key word in this in this
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definition is the word skiers this is a central concept of the study of
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economics and in some sense can be considered the defining characteristic of the study
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of economics we start with the concept their scarcity?
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There is a fixed number of people in the country who can work a fixed number of
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hours that we have available to doing work
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there's fixed resources that are available for us to produce goods and services after we
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producers goods and services are some fixed and amount of that has to be
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distribute among people so there is less of everything
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then we would possibly want there's not an infinite supply of everything what that
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implies is that we as a society and we
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as individual people need to make choices we have to choose how to use
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the scarce resources if they're used in
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one way that can't be used in another way so we need to
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make those choices meaningfully we need to understand how to make them appropriately.
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And, understand the choices that are implicit within the economic system that we
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set up but the making of choices among
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scarce resources implies is that there is no free-lunch.
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Everything has an opportunity cost,
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for example, you come to this lecture you didn't have to pay any money to come
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in so it seems like it's a free lecture but.
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You could have done something else with your time you could have drunk cappuccino with some of
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your friends you could studied for another class you could go to another class so,
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there was some alternative use of your time that you could have spent this
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time at this did you chose to come here and have this class the opportunity
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cost of this class is the cost of the value
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of whatever else you would have done with your time otherwise everything has an opportunity cost
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...since the explicit representation of opportunity cost and the
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full follow through of the
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implications of that is the concept of economics that's what we study?
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What this is lead to is?
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A economics being call the dismal science many of you
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...heard that.
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Yes, I think thomas carlyle was the person who coined that phrase but it's
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dao caught on everyone refers to economics is the dismal science
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will I hate to be considered a dismal scientist.
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But, it's
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based in the idea there is the study of a system that can't.
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Satisfy all needs we have more people with more wants then are
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available to meet with our scarce resources so it's kind of a recognition of the dismal
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news that comes out of recognition of scarcity I actually see the field in
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a much more?
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We would say happy light.
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Recognition of scarcity is simply recognition of the starting
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point it's like a alcoholic who finally admits their alcoholic that's the road to
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recovery for economists recognition of scarcity is actually the
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way we understand how to create more abundance how do we get more goods and services out
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of are out of are scarce resources and how do we allocate them in a
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more appropriate way to give more benefits to more people so another way to look at economics is
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instead of this definition that was given earlier is
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its the creation of abundance the science of how we create more with are scarce
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resources how do we produce more how do we have opportunities for mutually
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advantageous trade or I can give you some of my good you-can give-me some of your goods
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through market system perhaps and we both be better off and how to
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new products and processes get created this
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is actually the more appropriate view of the field throughout history
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are economic welfare has grown tremendously in the last two three
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hundred-years is just phenomenal what we as?
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A society have been able to accomplish and it's not net
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with an increase in the amount of land available...always been there
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...the resources available we have more population but our economy has grown much more than
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that it's actually to being better able to create things out of what we've
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got it and that's what we're trying to do throughout this whole corsu need
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to keep remembering the batch the goal but that's what we're trying to do so you can
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redefine this-is economics is how to create more benefits with
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our existing scarce resources okay with that as a kind of pep talk.
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Want to go over well just to make clear microeconomics
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...going to have this class divided into two parts microeconomics has to do with
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behaviour of individual firms and...
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Later if you continue on...she'll take
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an entire course on microeconomics and macroeconomics is the
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behavior of the economy as a whole thing it should be the case that the
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to are interrelated however at our level of understanding of
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the macro economy there's not that much relation between the two as you'll see the kinds of
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forces that operate and determine what happens in a macro economy.
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Art in a since independent they're not independent but if you
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try to apply...this concepts of microeconomics
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writ large for the macro economy you can go really wrong.
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So, usually these to concepts are divided
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...the next generation of you people can figure out better ways for us to reconcile the
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to parts of economics again, later if you go...economics you could take classes
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just in macroeconomics we're going to cover both because the
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purpose of this courses to give you an idea of what the field has to say what it is that you might
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want to be studying when you go forward in economics whether you want to do this is your profession or your major.
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Okay, so, what are the course requirements
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...say we've got a lot of resources?
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Available for this class there's a lot of people involved and you should take
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advantage of everything first I want to say
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...a good time to start our head gs
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ri is going-to be in charge of all enrollment issues and other issues that arise
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during the course value where she there...
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And, I think now's a good time to just talk about enrollment.
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There's a few anyway you go ahead...say...that on yet
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okay so my name's...and I'm the person who handling the...of this whole
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class and...we have...on the wedding...and you love them
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...gideon so first let me explain a few things for the people who
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already in this class please attend the first week sections if you don't
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show up not for both of the to sections...dropped so the people who in the
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wellness will get in to make sure you attend the first
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to section which is the for in the first week.
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And, the for the people we know what a list you are pretty high so you
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...getting the class just by...students dropping the class.
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And, for other students who are not in the...foulest...have some?
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Reason that you don't get in regularly register the class and
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face one we haveseparate procedure recalled applying for the
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cdc code so I have the form here I will live a few copies
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and the desk and I...few copies in the hallway and you can
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also reach me in my office at evidence five eight two basically most
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of the time in the first two weeks I'll be there so you can also feel free to email me
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...my email address and on the website right yes so, you can apply for the
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code if you think you have some priority getting the class,
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for example, you...class to graduate to certify some requirement of your departments
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...can consider that just want make sure that we reserve twenty six so that's why you see
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...only seven hundred people getting class while we have some hundred-twenty in the class limit
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consumers the reserve...those students if we don't have those students all
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the extra...will go to the waiting list so people will get a chance to get
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it ok the question questions.
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Everyone's happy with enrollment.
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First-year ever thank you.
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Ok.
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We also have each of you has a gs side.
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That is in your...section?
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The gs size are code teachers in this class with me.
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As you probably know by now this class has two hours of
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...week and to hours of section week so fully
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half of the instruction will go on in sections and
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your gs size will be covering the handling those I think you will find
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the sections to be very enjoyable and productive.
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I have given material for the gs size to cover in each section so,
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that every gs I will be covering that material but then also the gs size
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I've encourage them to bring their own material because I really do think economics is a very
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personal topic it's a personal subject you have your own views on things it's a way to
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organize...thinking it's not a mandated right wrong concept so the
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...the gs size can do that intersections and let you do it also
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the better so there's time and section for material that's beyond what I am requiring
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...over there also the required material in the sections will also be
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on the exam so it's important you go to section or you want do well on the exams, for example,
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I think the first topic we're covering in section is the production possibility frontier so
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really important in useful concept we're not going to talk about it all and lecture and,
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it's important you be...section forward.
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And, in regard to that you skip the rest of these for now and talk about grading.
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The grading is five percent for the five problem sets twenty-five percent for the
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...terms and forty five percent for the final exam there's
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...terms importantly all grating will be by gs
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He so each gs I will grade his or her own students develop his or
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her own curve.
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And, assign degrades will all be under my supervision I'm responsible for the
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grades but, it will be separate by gs side so I'm doing this for a couple of
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reasons.
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Before I get into that big so like you can see the sense.
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This class also has a stricter...distribution...most classes
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...perhaps...custom...we will each gs I will give twenty
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five percent of their students aa of some kind thirty-five percent b of some kind
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of remainder season below so,
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the median grade is a low
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be essentially in this class the reason this is we do this is
00:18:00.910
a departmental regulation not a regulation
00:18:04.400
...are individually responsible for
00:18:08.190
grades but it's a recommendation by the department to have this
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kind of distribution because this classes used to determine who gets into the major who gets
00:18:17.630
into hasan things like that...everyone made...and b you wouldn't be able to distinguish you should get
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in the major and stuff so this is the reason for it and you
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should maybe consider this when you're trying to decide whether detect class you should also recognize that
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...is not a bad grade everyone thinks you should make
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...is better a see the most important thing in
00:18:37.040
college is to figure out what you want to do with your life.
00:18:41.460
At least dispersion can...four years and, if you make a see in
00:18:47.010
...class sometimes that means well that's not the root for me go somewhere else
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do something else so it's useful information you shouldn't see it as a
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failure you should see it as a gaining of information about who you are which are interested in what you're
00:19:03.420
good at so nevertheless this...the great distribution now each gs side
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than will have their students and will essentially
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figure out by adding up all the points what's the top twenty five percent give them
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...these et cetera
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what this means is that each of you will be graded and
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...a curve only with other students who are being taught at the same
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gs side that's the main reason for this when I first started teaching this class I had one
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great distribution for the whole class and then what would happen is some gs size
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...teach differently than others some of them cover different material than others
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and the students felt that if they didn't do well it was their gs size fault because the gs I was
00:19:47.370
a teaching well this way everyone within one gs
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size teaching mechanism is getting grated equivalently
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...so it's much better in that regard?
00:20:00.480
Okay, any issues are questions about the grading I know I always...later because
00:20:05.440
it's feels confusing but it's actually not each gs I
00:20:16.710
it's as if they have their own class, yeah.
00:20:21.500
Participation is not counted towards your grade in
00:20:26.500
any fashion there's several ways for that reasons for that some of the gs size
00:20:33.050
ask me about that because they wanted to do that but I'm actually opposed to it I
00:20:33.750
think.
00:20:38.240
We're providing you hear and excellent learning opportunity but I really do
00:20:43.670
field each of you can make a choice of taking advantage of it to the extent you
00:20:47.800
If you don't want to come to section you don't want to come to lecture is truly your choice
00:20:53.290
...probably end up with...but it it's I don't want people
00:20:57.840
to have to do everything anything this is an opportunity for you to be the best you can be
00:21:02.560
and you can take advantage of it to the extent that you want so in that sense attendance is not
00:21:08.110
grated and participation in the sense of discussion I don't like having grated because
00:21:10.060
there's huge cultural differences and how
00:21:20.680
people interact and group situations so I don't want those to enter into the...either?
00:21:23.380
Okay.
00:21:26.430
The text book want to talk about this.
00:21:30.450
Textbook is case spirit austere principles of economics
00:21:34.970
you can use either the night or the tenth edition.
00:21:37.760
I would encourage you.
00:21:42.250
buddy economists to find ways to save money on this the tempt
00:21:49.590
addition costs something like two hundred and forty dollars.
00:21:53.910
One ninety-six on amazon I looked on half dot com
00:21:58.910
yesterday and they were ninth additions available for thirty eight
00:22:01.650
dollars.
00:22:05.260
And, they rush mail them to you.
00:22:07.380
I would encourage you to do that I think the
00:22:11.140
publishers charging these prices is sinful and we should use
00:22:14.260
our economic clout to avoid paying these prices.
00:22:20.950
All the readings on the syllabus and on the website are given for both the night the tempt
00:22:27.600
additions so you can use either one also the bookstore has told me
00:22:32.460
that you can read the book instead of...it for half-price it's a
00:22:36.160
little less than half-price I give details on the website
00:22:39.570
...bookstore has information about it so you buy it you can
00:22:42.890
...you can do whatever you want to the
00:22:46.250
...semester and it's a it's half-price so that but that's still
00:23:00.750
a hundred fifteen dollars or something like that so it's expensive and.
00:23:06.460
Yeah, slug books dot com slug because if you see santa cruz
00:23:10.910
...compatriot campus so,
00:23:14.080
try to find if you've already bought the tent addition I don't want
00:23:18.720
...make the bookstore mad at me but you could find one online
00:23:26.670
at thirty eight dollars and bring it back the tend to...back to the bookstore.
00:23:27.900
We have a course website.
00:23:33.130
...space for this class simply orient you back to this
00:23:34.510
website.
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It's because I created this web site before be space existed and I
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liked the way it uses infer displays information better than the
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...space each of you will probably also have a b space
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site for your individual sections your geo size will have them.
00:23:59.310
Okay, so, we've got our head g...we've got our individual gs size at each of you will have
00:24:03.030
is your individual teacher we also have an audio-visual
00:24:10.560
q crew appear ezra and vivian...
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This classes being webcast.
00:24:18.770
a few hours after the lecture it will be available on webcast
00:24:22.560
...berkeley dot com if you want to look at it
00:24:27.530
this is hopefully only for you to do is review as I said before attendance is
00:24:31.600
all your option but I really do believe being here in person
00:24:36.500
as part of the experience of being at berkeley this is what you're here for it would be
00:24:41.340
...to miss this opportunity of actually having in class discussions you
00:24:45.690
...university phoenix if you...online class
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so I encourage you to come here even though you do have the opportunity to
00:24:53.930
watch the webcast later also the vice chair
00:24:58.180
of the department when I told him I was going to do these webcast told
00:25:04.220
me he didn't want me to do it because he thought students would quit coming to lecture and,
00:25:08.700
the compromise we reach does that I told him that I would cut off the webcast if I find
00:25:13.530
that starting to happen so that's happening so don't worry
00:25:19.040
...you just come...lecture.
00:25:21.880
Let's see.
00:25:22.960
The...slides.
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...starting next lecture each lectures going to have a tremendous number of
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slide's with graphs and we're going to go through them at a relatively rapid pace
00:25:38.770
it would be hard to draw them as quickly as we're going to be going through them as one advantage of
00:25:44.180
having this electronic processes that you can go through slides and
00:25:48.910
go through a lot of information quickly I remember when I was a student everything was drawn and I got
00:25:53.570
so deadly bored in class it was unbelievable and now we go to much faster
00:25:59.010
in as a result all of us people are smarter than we were your age so,
00:26:03.900
you it would help if you had hard copies of the
00:26:09.180
slides when you came to lecture you can get them online
00:26:13.940
their online in two different versions six slides per pager for slide's per page
00:26:19.380
two slides I think or you can get a booklet of all of them
00:26:22.280
...two hundred sixty five pages of slide's
00:26:27.240
at fast imaging and it only costs seven dollars so that's cheaper than if you
00:26:32.680
print them out yourself fast imaging is on university between shattuck and real view
00:26:35.570
...three...punched so-if you...put them in a binder
00:26:42.310
you-can they don't come that way so you don't have to pay for the binder if you don't want.
00:26:47.880
Okay, any questions about the logistics of the class.
00:26:51.930
Be sure to attend section the first week the first week
00:26:55.620
ends this coming wednesday real...be dropped from the class.
00:27:09.580
Other than that did you ever question no law cnn next wednesday.

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Economics 1 Introduction to Economics Professor Kenneth Train
There is no better way to get motivated to study economics than to read the news. Check out these headlines...
FTC Opens Antitrust Investigation on Google
July Jobs Report: Hiring Picks up Employers added 117,000 jobs last month, easily topping the gain [that was) predicted. And the unempl%ment rate improved slightly to 9.1%
China convicts American as trash smuggler
ECONOMICS: How societies use scarce resources to produce valuable commodities and distribute them among people.
ECONOMICS: How societies use scarce resources to produce valuable commodities and distribute them among people. What goods are produced? What resources are used to produce the goods? Who gets to consume the goods?
Scarcity Choice Opportunity Cost
Opportunity Cost scarcity Choice
Scarcity Choice Opportunity Cost
Creation of abundance... • Ways to produce more. • Opportunities for mutually advantageous trade. • New products and processes.
Microeconomics: Behavior of individual consumers and firma. Macroeconomics: Behavior of the economy as a whole.
Grading Problem Sets: total Midterms: Final Exam: each 45%
Each GSI grades his/her students. Expected grade distribution for each GSI: A's C's and below 40%
Textbook Principles of Economics, 9b or I Othedition, by Case, Fair, and Oster Course website http://elsa.berkeley.edu/—train/ecl.html
Lecture slides • Hardcopy of slides available at Fast Imaging 2022 University AVC bctwccn Shattuck and Milvia 510-845-6333 • Online at coursewebsite
Remember Be sure to attend your section in the fir-st week of class, or contact your GSI to say that you want to take the course. Otherwise you will be dropped from the course.
Aloha for today.
Introduction to Economics
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