Author: Brian Kench, PhD
Abstract: The purpose of this course is to introduce fundamental economic principles which the student may use to think critically about macroeconomic events.
Audience: Undergraduate college students and high school students
Chapter 1 introduces the concepts of opportunity cost and comparative advantage. The chapter offers a discussion of how these concepts are used to prove the mutual advantage of individuals, businesses or countries specializing in things with which they have a comparative advantage and trading for the rest.
Chapter 2 provides an introduction to the model of demand and supply. Economists use the model of demand and supply to analyze how buyers and sellers interact in the marketplace. It shows how market prices are determined and it demonstrates how many units of the good or service will be bought and sold.
Chapter 3 reviews economic performance metrics such as GDP, price level and inflation.
Chapter 4 discusses money and banking, types of money, and how banks create money. Also, the Federal Reserve system is discussed.
Chapter 5 discusses aggregate demand and aggregate supply and the variables that shift aggregate demand and aggregate supply.