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    2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ra !air

    "he #tu$ of Economics"he #tu$ of Economics

    % EconomicsEconomicsis the stu$ ofis the stu$ of

    ho& in$i'i$uals an$ societiesho& in$i'i$uals an$ societies

    choose to use the scarcechoose to use the scarceresources that nature an$resources that nature an$

    pre'ious generations ha'epre'ious generations ha'e

    pro'i$e$(pro'i$e$(

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    2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ra !air

    "he #cope of Economics"he #cope of Economics

    % MicroeconomicsMicroeconomicsis the branch of economicsis the branch of economics

    that e)amines the functioning of in$i'i$ualthat e)amines the functioning of in$i'i$ual

    in$ustries an$ the beha'ior of in$i'i$ualin$ustries an$ the beha'ior of in$i'i$ual

    $ecision*ma+ing unitsthat is, business firms$ecision*ma+ing unitsthat is, business firmsan$ househol$s(an$ househol$s(

    % MacroeconomicsMacroeconomicsis the branch of economicsis the branch of economics

    that e)amines the economic beha'ior ofthat e)amines the economic beha'ior ofaggregatesaggregates income, output, emploment, an$ income, output, emploment, an$

    so onon a national scale(so onon a national scale(

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    2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ra !air

    "he -i'erse !iel$s of Economics"he -i'erse !iel$s of Economics

    Examples of microeconomic and macroeconomic concernsExamples of microeconomic and macroeconomic concerns

    ProductionProduction PricesPrices IncomeIncome EmploymentEmployment

    MicroeconomicsMicroeconomics Pro$uction/.utputPro$uction/.utputin n$i'i$ualin n$i'i$ualn$ustries an$n$ustries an$BusinessesBusinesses

    Ho& much steelHo& much steelHo& man officesHo& man officesHo& man carsHo& man cars

    Price of n$i'i$ualPrice of n$i'i$ualoo$s an$ #er'icesoo$s an$ #er'icesPrice of me$icalPrice of me$ical

    carecarePrice of gasolinePrice of gasoline!oo$ prices!oo$ prices1partment rents1partment rents

    -istribution of-istribution ofncome an$ ealthncome an$ ealthages in the autoages in the auto

    in$ustrin$ustr3inimum &ages3inimum &agesE)ecuti'e salariesE)ecuti'e salariesPo'ertPo'ert

    Emploment bEmploment bn$i'i$ualn$i'i$ualBusinesses 4Businesses 4n$ustriesn$ustries

    5obs in the steel5obs in the steelin$ustrin$ustrumber ofumber ofemploees in aemploees in afirmfirm

    MacroeconomicsMacroeconomics ationalationalPro$uction/.utputPro$uction/.ut

    put

    "otal n$ustrial"otal n$ustrial.utput.utputross -omesticross -omesticPro$uctPro$uctro&th of .utputro&th of .utput

    1ggregate Price1

    ggregate Price7e'el7e'el

    Consumer pricesConsumer pricesPro$ucer PricesPro$ucer PricesRate of nflationRate of nflation

    ational ncomeational ncome"otal &ages an$"otal &ages an$

    salariessalaries

    "otal corporate"otal corporateprofitsprofits

    Emploment an$Emploment an$8nemploment in8nemploment in

    thethe EconomEconom

    "otal number of"otal number of9obs9obs8nemploment8nemplomentraterate

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    2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ra !air

    "he Circular !lo& of Economic 1cti'it"he Circular !lo& of Economic 1cti'it

    % "he"he circular flow ofcircular flow of

    economic activityeconomic activitysho&ssho&sthe connections bet&eenthe connections bet&een

    firms an$ househol$s infirms an$ househol$s in

    input an$ output mar+ets(input an$ output mar+ets(

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    2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ra !air

    nput 3ar+ets an$ .utput 3ar+etsnput 3ar+ets an$ .utput 3ar+ets

    % Output, or product,Output, or product,

    marketsmarketsare the mar+etsare the mar+ets

    in &hich goo$s an$in &hich goo$s an$

    ser'ices are e)change$(ser'ices are e)change$(

    % Input marketsInput marketsare theare the

    mar+ets in &hichmar+ets in &hich

    resourceslabor, capital,resourceslabor, capital,an$ lan$use$ toan$ lan$use$ to

    pro$uce pro$ucts, arepro$uce pro$ucts, are

    e)change$(e)change$(

    % Paments flo& in the oppositePaments flo& in the opposite

    $irection as the phsical flo& of$irection as the phsical flo& of

    resources, goo$s, an$ ser'icesresources, goo$s, an$ ser'ices

    :countercloc+&ise;(:countercloc+&ise;(

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    2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ra !air

    Kara+teristi+ umum R" secara e+onomiKara+teristi+ umum R" secara e+onomi

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    >uantit -eman$e$>uantit -eman$e$

    % Quantity demandedQuantity demandedis the amountis the amount

    :number of units; of a pro$uct that a:number of units; of a pro$uct that a

    househol$ &oul$ bu in a gi'en timehousehol$ &oul$ bu in a gi'en time

    perio$ at the current mar+et price(perio$ at the current mar+et price(

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    "he -eman$ Cur'e"he -eman$ Cur'e

    % "he"he demand curvedemand curveisisa graph illustratinga graph illustratingho& much of a gi'enho& much of a gi'en

    pro$uct a househol$pro$uct a househol$&oul$ be &illing to&oul$ be &illing tobu at $ifferent prices(bu at $ifferent prices(

    PRICE

    (PER

    CALL)

    QUANI!

    "EMAN"E"

    (CALL# PER

    M$N%)& ' '

    '*' +*

    *' ,

    ,''

    -''' -

    -*'' '

    ANNA.# "EMAN"

    #C%E"ULE /$R

    ELEP%$NE CALL#

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    "he 7a& of -eman$"he 7a& of -eman$

    % "he"he law of demandlaw of demandstates that there is astates that there is anegati'e, or in'erse,negati'e, or in'erse,relationship bet&eenrelationship bet&een

    price an$ the ?uantit ofprice an$ the ?uantit ofa goo$ $eman$e$ an$a goo$ $eman$e$ an$its price(its price(

    % "his means that"his means that$eman$ cur'es slope$eman$ cur'es slope

    $o&n&ar$($o&n&ar$(

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    -eterminants of Househol$ -eman$-eterminants of Househol$ -eman$

    % "he"heprice of the productprice of the productin ?uestion(in ?uestion(

    % "he"he incomeincomea'ailable to the househol$(a'ailable to the househol$(

    % "he househol$@s amount of"he househol$@s amount of accumulated wealthaccumulated wealth..

    % "he"heprices of related productsprices of related productsa'ailable to thea'ailable to the

    househol$(househol$(

    % "he househol$@s"he househol$@s tastes and preferencestastes and preferences((

    % "he househol$@s"he househol$@s expectationsexpectationsabout futureabout future

    income, &ealth, an$ prices(income, &ealth, an$ prices(

    1 househol$@s $ecision about the ?uantit of a particular1 househol$@s $ecision about the ?uantit of a particular

    output to $eman$ $epen$s onAoutput to $eman$ $epen$s onA

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    Relate$ oo$s an$ #er'icesRelate$ oo$s an$ #er'ices

    % SubstitutesSubstitutesare goo$s that can ser'e asare goo$s that can ser'e as

    replacements for one another &hen thereplacements for one another &hen the

    price of one increases, $eman$ for theprice of one increases, $eman$ for the

    other goes up(other goes up( erfect substituteserfect substitutesarearei$entical pro$ucts(i$entical pro$ucts(

    % !omplementsare goo$s that go

    togetherD a $ecrease in the price of oneresults in an increase in $eman$ for the

    other, an$ 'ice 'ersa(

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    KonsepKonsep DemandDemand untu+ Perencanaanuntu+ Perencanaan

    Rumah #a+itRumah #a+it

    % DemandDemand terha$ap pelaanan +esehatanterha$ap pelaanan +esehatan

    merupa+an hal penting ang mempengaruhi masamerupa+an hal penting ang mempengaruhi masa

    $epan ataupun$epan ataupun survivalsurvival suatu rumah sa+itsuatu rumah sa+it

    % 7a+u+an analisis pasar atau peramalan7a+u+an analisis pasar atau peramalan

    permintaan( 1nalisis pasar a$alah mene$ia+anpermintaan( 1nalisis pasar a$alah mene$ia+an

    informasi mengenai +ea$aan pasar saat ini $aninformasi mengenai +ea$aan pasar saat ini $an

    +emung+inan+emung+inan trendtrend pasar $i masa men$atang(pasar $i masa men$atang(

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    Kara+teristi+ umumKara+teristi+ umum PerusahaanPerusahaan secarasecara

    e+onomie+onomi

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    !ungsi pro$u+si!ungsi pro$u+si

    !ungsi Pro$u+siA!ungsi Pro$u+siA

    Hubungan te+nis antara 9umlah input $an outputHubungan te+nis antara 9umlah input $an outputpa$a penggunaan ting+at te+nologi tertentu(pa$a penggunaan ting+at te+nologi tertentu(

    %> f:) f:) ting+at pro$u+si/ouput/+eluaran> ting+at pro$u+si/ouput/+eluaran

    %)

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    #ifat !a+tor Pro$u+si#ifat !a+tor Pro$u+si

    % !a+tor ang mu$ah $iubah :bahan ba+u,!a+tor ang mu$ah $iubah :bahan ba+u,+ara&an lepas, bahan ba+ar;+ara&an lepas, bahan ba+ar;

    %!a+tor ang ti$a+ mu$ah $iubah*ubah :ge$ung,!a+tor ang ti$a+ mu$ah $iubah*ubah :ge$ung,tanah, mesin, alat*alat besar;(tanah, mesin, alat*alat besar;(

    5ang+a &a+tu ang ti$a+ memung+in+an pro$usen5ang+a &a+tu ang ti$a+ memung+in+an pro$usenuntu+ mengubah ubah besarna beberapauntu+ mengubah ubah besarna beberapafa+tor pro$u+si 9ang+a pen$e+fa+tor pro$u+si 9ang+a pen$e+

    #e$ang+an 9ang+a pan9ang 5ang+a &a+tu ang#e$ang+an 9ang+a pan9ang 5ang+a &a+tu angmemung+in+an pro$usen untu+ mengubahmemung+in+an pro$usen untu+ mengubahubah besarna beberapa fa+tor pro$u+siubah besarna beberapa fa+tor pro$u+si

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    "he Beha'ior of"he Beha'ior of

    Profit*3a)imiFing !irmsProfit*3a)imiFing !irms

    % "he three $ecisions that all firms"he three $ecisions that all firms

    must ma+e inclu$eAmust ma+e inclu$eA

    %o0 muc1 of%o0 muc1 of

    eac1 input toeac1 input to

    demanddemand

    21ic121ic1

    productionproduction

    tec1nolo3y totec1nolo3y to

    useuse

    ++

    %o0 muc1%o0 muc1

    output tooutput to

    supplysupply

    --

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    "he #uppl Cur'e an$"he #uppl Cur'e an$

    the #uppl #che$ulethe #uppl #che$ule

    % 11 supply curvesupply curveis a graph illustrating ho& muchis a graph illustrating ho& much

    of a pro$uct a firm &ill suppl at $ifferent prices(of a pro$uct a firm &ill suppl at $ifferent prices(

    0

    (merupa+an fungsi $ari 'ariabel ang sama aitu >(

    7aba :7aba :; ; ""R *R * ""C , +arenaC , +arena ""R f:>; $anR f:>; $an ""C f:>; ma+aC f:>; ma+a

    p f :>;( .ptimum $icapai apabila turunan pertama sama $engan nol(p f :>;( .ptimum $icapai apabila turunan pertama sama $engan nol(

    ""R *R * ""C ma+aC ma+a

    $$/$>/$> $R/$> * $C/$> $R/$> * $C/$>

    3R * 3C 3R * 3C.ptimum $.ptimum $/$>/$> 0 ma+a 3R * 3C 0 0 ma+a 3R * 3C 0

    9a$i9a$i

    3R3R 3C 3C

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    2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ra !air

    EfficiencEfficienc

    % EfficiencyEfficiencyis the con$itionis the con$ition

    in &hich the econom isin &hich the econom is

    pro$ucing &hat peoplepro$ucing &hat people&ant at the least possible&ant at the least possible

    cost(cost(

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    2002 Prentice Hall Business Publishing Principles of Economics, 6/e Karl Case, Ra !air 27

    Cost*3inimiFing nput ChoicesCost*3inimiFing nput Choices

    % 3athematicall, &e see+ to minimiFe total costs gi'en3athematicall, &e see+ to minimiFe total costs gi'en qq

    ff::kk,,ll; ; qq00

    % #etting up the 7agrangianA#etting up the 7agrangianA

    LL $$llJJ vkvkJJ qq00** ff::kk,,ll;L;L

    % !irst or$er con$itions are!irst or$er con$itions are

    LL//ll $$** ::f/f/ll; 0; 0

    LL//kk vv** ::f/f/kk; 0; 0

    LL// qq00** ff::kk,,ll; 0; 0

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    Cost*3inimiFing nput ChoicesCost*3inimiFing nput Choices

    % -i'i$ing the first t&o con$itions &e get-i'i$ing the first t&o con$itions &e get% "he cost*minimiFing firm shoul$ e?uate

    the R"# for the t&o inputs to the ratio of

    their prices