Economics

Microeconomics

- Economics =  It is about how the people, individuals or societies to used the scarce resource that nature and previous generation have provided. the key word of this term is choose. Economics is a behavioral, social, science and in the large scope, economics is about people make a choice.

- Reason we study economics =  The reasons are ;

1. Learn Way of thinking : To understand the way of thinking in economics, firstly we have to know the three concepts of "Way of Thinking" on it they are :

a. Opportunity Cost : it is the best choice the we forget after we make a decision, it occurs when peope have decide something and then doing it but there is another things that have more value and benefits. for example if I have to choose going to college or talking with friends. if my condition as a student that near will have an exam and then I choose to talk with my friends, it means that the decision for going to college is the "Opportunity Cost" because by attending the college it gives me more understanding on my exam and I could pass it. the point is Opportunity cost is the best alternative of any decision that has most value rather than any decision based on current condition.

b. Marginalism : It is the process of analyzing incremental activity or additional activity. so from the planning that we will finish the mission for 2 hours, it is included eat, transportation, living cost but because of there a delay or Delay of job, the mission shall take for 4 hours, it means that the additional cost of 2 hours we will count as  marginalism because there is increasing cost from the plant. In additional there also called as Sunk Cost it is the cost we can avoided refer what is done in the future. sometimes the increasing of marginalism will be follow by marginal Benefits.(the benefits that we from marginalism which is they are equal)

c. Efficient Market : It is one the efficient market the eliminated the benefits instantaneously. from what I got, it is the market that not only provided product but also information as it is worth to the product itself. the temporary understanding that I got is efficient market has no physical market but it is like investment market,  stock market and many more.

2. Understand Society : This concept means that by Economics we understand the development society life because as we know that the needs and the lifestyle of people in the world is Heterogeneous or Various it means that they will always change time by time. By understand it we can know the needs, demand or lifestyle in specific country and then we fulfill that needs or demand.

3. To understand Global affairs : By this we can understand the global affair and the impact of the global affair in one country for example the big affair on 22 september in washintong dc which one of the greatest building hit by the plane that promoted by terrorist attack.

4. To be Informed Voter : It is become as the basic knowledge that we have when we want to vote for something. The knowledge of economics or else could be become important because we can choose rationally and know the prospect the candidate we will vote.

- Economics = Economics consist of two scope, they are ;

1. Microeconomics = It is study about the branches of economics that studies and analyze the economic behavioral, functioning, and decision of societies(People), firms, and Government. It study the correlation occur on it.

2. Macroeconomics = It is dealing with the performance, wages of the employment, GDP, Unemployment in the country, structural behavior and about national decision making in the future. Macro economics has larger scope than Microeconomics because it is in national scale.

-  Economics = In economics there are three elements that integrate together they are Firms, Household (consumer) and Government. Those three elements are in the activity of Microeconomics scale. for the Firms that produce and supply product sell the product to the customer and then the customer buy the product, in the concept between firms and consumer there is Government that gives a rules to keep the process keep going,.

Glossary :
- Positive Economics : An approach to economics that understand the behavioral and the operation os system without making Judgements. It describes what exists and how it works and also how is the change of the fact. For example on early of September the price of Sugar is increase form $3kg to $6kg. 

- Normative Economics : Normative Economics is approach that understand about the fairness of economic policy in the market. It expressed whether the policy in the market that have been applied by the government is suitable for the people or not or whether it is fair to the current condition of the people now.

- Descriptive Economics : It is the compilation of data that describe the phenomena and facts.

- Economics Theory : It is statement or set of statements that has relation that describe of each respond for Cause, Effect, Action and Reaction.

- Models : It is Simple model from the complex thing to make the reader easier to understand. It is usually in Mathematical way. Sometimes Economist use Model to easier understand the concept of the subject they are learning. The point is Model is the simple concept from complex thing.

- Incentives : It is something that encourage and induce someone to act.

- Ceteris Paribus : It is the condition where the connection of two Variables are same while another value held unchanged.

- Post Hoc ergo propter oc : this theory about this one thing will be occur without the existing or causation of B. event the existing B will also caused the existing A to the C.

 10 January 2012 (1st Meeting), By Mr. Arief Bustamen