ECN 201 1st Edition Lecture 1 Outline of Last Lecture I. This is the first lectureOutline of Current Lecture II. What is Economics?A. Types of economicsB. Steve Jobs video exampleIII. What will we be studying?A. Market EconomyB. Invisible handC. Market FailureCurrent LectureWhy have gas prices kept increasing?-Conflict in the Middle East-There’s a finite amount of oil on Earth-Supply and DemandWhy is renting apartments in NYC so expensive?-High demand, low supplyWhat is economics?Economy - a system for coordinating society’s productive activities.Economics - is the social science that analyzes the production, d istribution, and consumption of goods and services.Microeconomics - is the branch of economics that studies how people make decisions and how these decisions interact.Macroeconomics - is the branch of economics that is concerned with overall ups and downs in the economy.Is college worth the cost?These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Pros: possibility to make more money when you grow up, become highly educate, meet a highly educated partnerCons: costs a lot of money, costs your parents money, takes up 4 years of time at leastWatched Steve Jobs’s 2006 Stanford Commencement Address:-dropped out of Reid college after 6 months-was adopted by a mom who didn’t go to college and a father who didn’t finish highschool-felt he was spending too much of his parents’ money on college-went to classes but didn’t live at college so he slept on his friends’ dorm room floors and returned bottles for money for food-took a typography class for fun and used that knowledge when starting up Apple-started Apple at the age of 20 with a friend in his garage-released Macintosh computer, got fired because of falling out with business partner at age 30-next 5 years spent starting up a company called “Next” and “Pixar” and fell in love with his later to be wife-Apple bought Next and he returned to their company-said that the only way to do great work is to love what you do. Keep looking and don’t settle-remembering you’re going to die helps you remember to follow your heart-had pancreatic cancer and given 3 – 6 months to live-cancer ended up being curable, so he had a surgery and was cured-death is life’s change agent-“Stay hungry, stay foolish” – written on the last issue of the Whole Earth CatalogueWhat will we be studying?Market Economy - an economy in which decisions about production and consumption are madeby individual producers and consumers (the opposite of a market economy is a planned economy where the government controls everything)Invisible hand - is the way in which the individual pursuit of self-interest can lead to good results for society as a wholeMarket failure - when decisions lead to bad