MICROECONOMICS IIECON 202

Lecture 1

Evelyn Anderson

© 2001

Why study economics?

Let’s try three perspectives to find the answers.

The three perspectives

• A career perspective

• A personal finance perspective

• A society / economy’s perspective

The career perspective

What can I do with an economics minor or major????

Some of the careers that you can have with an economics minor:

Business / Arts Informatics

+ +

On its own

Economics complements these 3 Economics is a heavy user of computer

majors by adding a relevant and technology. Studying economics helps

strategic perspective to the under- you to understand an important customer’s

standing of fundamental business needs better. This combination may lead

principles. Economics is the pro-you to jobs in these areas:

genitor of most business disciplines!

Microeconomics I Macroeconomics I

Microeconomics II Macroeconomics II

Marketing or HRM or

International Business

Informatics

*Investment industry * Strategic management *Government eg. Treasury

*Teaching

*Financial Planning

*Government

*Politics

*Be your own boss!

What about an economics major?

Is it possible at ACU?

The answer is YES!!!!

As an Arts student

• You CAN major in economics. It will involve some cross-institutional accreditation.

• That is, you need to take 2 to 4 units at another university, such as University of Queensland.

• I teach two other units (Economic Development in Asia and The Global Economy) in alternate years. If you are interested in those two units, then you will need to complete only two other units at another university.

As a Business or Informatics student

A Business student has 5 electives, and an Informatics student has 4 electives within your degree course. If you are keen, you can take 3 to 4 more economics units respectively over and beyond your course requirement. You may want to complete a Graduate Certificate in Economics. Yes I have precedents of zealous students doing just that!

What can I do with an economics major?

• You can work in business or in the public sector, doing what your other business colleagues do, perhaps with a better advancement prospect.

• You can teach a major area of studies at high schools and universities.

• You can work in the finance industry, which is a growing global industry.

• You can take control of your life and retire at 40!

Some examples of what you can do in the finance industry

• Financial Planner (Certificate required)

• Investment Adviser

• Financial Journalist

• Funds Manager / Financial / Business analyst

Economics Accounting Finance

Fixed Interest

InternationalProperties Shares

The personal finance perspective

• How often do you hear of someone saying that they want to be a millionaire before they turn 30?

• How probable is that?

• Do you have a goal in life?

• Would it be reasonable to aim at making and keeping $100,000 before you reach 30?

Economics helps you to look after yourself better

• Most business and professional disciplines try to equip you for a job.

• The sad part is, once you land in a job, you have to work hard to stay in it. Very often you concentrate so hard on your job and in pleasing your company, that you forget about yourself.

• Not only will economics take care of your job, it will also take care of your own financial well being.

Is it possible to make and keep $100,000 before I turn 30?

• Assumptions: you are 18 or 19 years old, and your net worth is $0 at present.

• The three assignments in this unit have been designed to help you achieve this goal.

• Good luck!!

The Society / Economy’s Perspective

• The economy is like a big jigsaw puzzle.

• The study of economics enables you to see the big picture, whereas most other business disciplines focus on the details of a smaller part of the big picture. Economics helps you to see how these disciplines are inter-connected.

Economics helps you see the big picture

How government / corporate decisions are made: Policy (The big picture with strategic

ramifications, contribution from economics is often substantial)

Explanation (Understanding economics often helps)

Implementation (Concentration on finer details required)

Production Marketing HR IT Accounting/Finance

Economics is also a study of the society

• Microeconomics is not confined to the study of the economy.

• It contributes to the understanding of wider social issues encompassing environmental pollution, crime, discrimination, even love and marriage.

• The study of different economies and their respective economic systems contributes to our understanding of philosophy.

So, what shall I concentrate on?

• You can now appreciate the enormous scope that microeconomics has to cover.

• I have designed this course so that you can concentrate on your interest areas.

• Let’s go through the unit outline, so you can tell me where your passion lies.

• (Please! REMIND me I have one more slide to go after the unit outline.)

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