https://www.krisna.or.id/en/tag/courses/CoursesHugoBlox Kit (https://hugoblox.com)en-usThu, 04 Feb 2021 22:04:07 +1100https://www.krisna.or.id/media/icon_hu_b3b1c80225e80fa3.pnghttps://www.krisna.or.id/en/tag/courses/https://www.krisna.or.id/en/slides/econ101/Thu, 04 Feb 2021 22:04:07 +1100https://www.krisna.or.id/en/slides/econ101/<h1 id="economics">Economics</h1> <h4 id="be4158">BE4158</h4> <h5 id="first-meeting">First meeting</h5> <h6 id="ibe-at-petra">IBE at Petra</h6> <p>Krisna Gupta<br> Monday, February $8^{th}$ 2021</p> <hr> <h2 id="todays-content-">Today&rsquo;s content ☀</h2> <ul> <li>housekeeping</li> <li>about studying economics</li> <li>some main principles</li> </ul> <hr> <h2 id="who-am-i-">Who am I? 👀</h2> <ul> <li> <p>A PhD student of Economics at Crawford School of Public Policy, Australian National University (ANU).</p> </li> <li> <p>Research about trade and industry, in particular how trade and investment policy shape Indonesian manufacturing industry.</p> </li> <li> <p>Ocassionally in online portals and personal </p> </li> <li> <p>An ocassional gamer, campsite musician and sometimes .</p> </li> </ul> <hr> <h2 id="about-the-content-of-be4158-">About the content of BE4158 📚</h2> <ul> <li>This course is based on .</li> <li>covered are principle of microeconomics: <ul> <li>Supply and demand</li> <li>the market and its limitation</li> <li>strategic thinking</li> </ul> </li> <li>and macroeconomics: <ul> <li>GDP, inflation, unemployment, the government</li> <li>What does it mean for business</li> </ul> </li> <li>The content is very similar with Mankiw (2009) available at your .</li> <li>books can be useful but are not required.</li> </ul> <hr> <h2 id="some-expectations-from-student">Some expectations from student</h2> <ul> <li>No prior knowledge is required.</li> <li>Please be active and ask questions.</li> <li>Good internet connection is assumed.</li> <li>Good english is assumed and expected to be used thoroughly.</li> <li>No cheating! Especially during exams.</li> </ul> <hr> <h2 id="some-rules">Some rules</h2> <ul> <li>The lectures will be about 1.5 - 2 hours length.</li> <li>I expect all students to pay attention. <ul> <li>I would greatly appreciate you turning on your cams.</li> </ul> </li> <li>There will be a small quizzes in the middle of each class. <ul> <li>make sure you pay attention.</li> </ul> </li> <li>You are welcome to go off cam and AFK at any time you like.</li> <li>Feel free to interrupt my class with questions. <ul> <li>alternatively, you can use chat if you are shy, or ask me later thru e-mail.</li> </ul> </li> </ul> <hr> <h2 id="structure-of-this-course">Structure of this course</h2> <ul> <li> <p>week 1: introduction</p> <ul> <li>housekeeping</li> <li>some principles</li> </ul> </li> <li> <p>week 2: supply and demand</p> <ul> <li>supply and demand curves</li> <li>perfect market equilibrium</li> </ul> </li> <li> <p>week 3: Meddling with the market</p> <ul> <li>tax and quantity control</li> <li>price elasticity</li> </ul> </li> <li> <p>week 4: firm problem</p> <ul> <li>production function</li> <li>marginal cost and average cost</li> <li>perfect competition</li> </ul> </li> </ul> <hr> <h2 id="structure-of-this-course-1">Structure of this course</h2> <ul> <li> <p>week 5: Monopoly &amp; oligopoly</p> <ul> <li>price discrimination</li> <li>game theory intro</li> </ul> </li> <li> <p>week 6: Externalities &amp; public goods</p> <ul> <li>deviation from perfect market</li> <li>policies that work</li> </ul> </li> <li> <p>week 7: Welfare</p> <ul> <li>Poverty &amp; inequality</li> <li>firms under different welfare setting</li> </ul> </li> </ul> <p>*** MIDTERM EXAM ***</p> <hr> <h2 id="structure-of-this-course-2">Structure of this course</h2> <ul> <li> <p>week 8: Macro basics</p> <ul> <li>accounting and growth</li> <li>inflation and international imbalances</li> </ul> </li> <li> <p>week 9: GDP, inflation and unemployment</p> <ul> <li>Measuring economy and price</li> <li>unemployment</li> </ul> </li> <li> <p>week 12: Long run growth</p> <ul> <li>Dynamics of economic growth</li> <li>Aggregate demand and supply</li> </ul> </li> <li> <p>week 11: Fiscal policy</p> <ul> <li>demand shock</li> <li>the state budget</li> </ul> </li> </ul> <hr> <h2 id="structure-of-this-course-3">Structure of this course</h2> <ul> <li> <p>week 12: Financial system</p> <ul> <li>Banks and money</li> <li>The central bank</li> </ul> </li> <li> <p>week 13: Monetary policy</p> <ul> <li>interest rate</li> <li>central bank instruments</li> </ul> </li> <li> <p>week 14: international economies</p> <ul> <li>trade policy</li> <li>international capital and exchange rate</li> </ul> </li> </ul> <hr> <h2 id="exams-etc-">Exams etc ✍🏾</h2> <table> <thead> <tr> <th>evaluation</th> <th>covers</th> <th>%</th> </tr> </thead> <tbody> <tr> <td>quiz</td> <td>everyday, best of 10</td> <td>20</td> </tr> <tr> <td>midterm exam</td> <td>first 7 meetings</td> <td>40</td> </tr> <tr> <td>final exam</td> <td>last 7 meetings</td> <td>40</td> </tr> </tbody> </table> <ul> <li>Only your best 10 will be used for graded quiz out of 14 meetings. <ul> <li>the quiz will be given by the end of every lecture.</li> </ul> </li> <li>A bit of an intern quiz in the middle of each meeting, ungraded.</li> <li>Slides should be enough to get a good grade.</li> <li>However, to get an A, you should master the principle.</li> </ul> <hr> <h2 id="some-tools">Some tools</h2> <ul> <li>All course materials are accessible through lentera and in pdf.</li> <li>All announcement will be posted on lentera and google classroom. <ul> <li>I believe it will patch through your Petra e-mail as well.</li> <li>Feel free to let me know what&rsquo;s best for your learning.</li> </ul> </li> <li>The course is also available at my website, . <ul> <li>It is in html format so you don&rsquo;t have to download.</li> <li>Also can be viewed on your phone.</li> </ul> </li> <li>I will update the course on a weekly basis.</li> </ul> <hr> <h2 id="some-tools-1">Some tools</h2> <ul> <li> <p>The mid-lecture pop quiz (ungraded) will be conducted via poll everywhere.</p> <ul> <li>Please prepare a tab in your browser to </li> <li>You can also use your smartphone&rsquo;s browser.</li> </ul> </li> <li> <p>The tool for the end-lecture quiz (graded) is still being explored.</p> <ul> <li>we will test by the end of today&rsquo;s lecture.</li> <li>We can also use google form.</li> <li>You are free to let me know your preference.</li> </ul> </li> </ul> <hr> <h1 id="questions">Questions?</h1> <hr> <h2 id="a-bit-about-you">A bit about you</h2> <iframe src="https://embed.polleverywhere.com/multiple_choice_polls/ZSvuqLVH3kXDtyC0q1VL0?controls=none&short_poll=true" width="800px" height="600px"></iframe> <hr> <h2 id="a-bit-about-you-1">A bit about you</h2> <iframe src="https://embed.polleverywhere.com/free_text_polls/8I0gGEvVFCiSryr6tM8Fh?controls=none&short_poll=true" width="800px" height="600px"></iframe> <hr> <h2 id="now-lets-appoint-a-class-rep">Now let&rsquo;s appoint a class rep!</h2> <ul> <li>for now, class rep&rsquo;s responsibility is to just administering attendance.</li> <li>any student is allowed to contact me directly.</li> </ul> <hr> <h1 id="about-economics">About economics</h1> <hr> <h2 id="why-economics">Why economics?</h2> <ul> <li>Contrary to what normal people think, economics is not about (just) money.</li> <li>Economics is all about making optimal decision under scarcity.</li> <li>We use math principle to optimise our decision making.</li> <li>This course is not going to dig too deep into the world of economic principles.</li> <li>This course does not provide answers to your question: It teach how to use economic framework to shape your question.</li> </ul> <hr> <h2 id="some-questions-asked-by-economists">Some questions asked by economists</h2> <ul> <li>How to best tackle climate change?</li> <li>Is minimum wage good?</li> <li>Should we introduce tax holiday to firms?</li> <li>Should the government increase expenditure by more tax or more debt?</li> <li>Should we introduce Universal Basic Income?</li> <li>How to evaluate government program?</li> <li>Should we ban mineral export?</li> <li>can we sustain economic growth?</li> <li>what to do during economic crisis?</li> </ul> <hr> <h2 id="more-questions-can-be-answered-with-partially-economic-principles">More questions can be answered with (partially) economic principles</h2> <ul> <li>lockdown or not lockdown?</li> <li>Should we invest in testing and tracing? or should we invest in treatment?</li> <li>Who to vaccine first: the elderly and vulnerables, or the working age?</li> <li>Should we trust BUMN, or private sector?</li> <li>essentially, it&rsquo;s about tradeoffs, cost and benefit.</li> </ul> <hr> <h3 id="about-your-learning">About your learning</h3> <ul> <li> <p>To get a glimpse of what economists usually do, you can take a look at my blog. examples:</p> <ul> <li> </li> <li> </li> </ul> </li> <li> <p>Questions you might be interested in:</p> <ul> <li>should I expand to other market or continue serving my niche?</li> <li>Should I outsource or make our own?</li> <li>Recruit fresh grads or train high school graduates?</li> <li>Update current system or adapt new system?</li> </ul> </li> </ul> <hr> <h1 id="principles-of-economics-">Principles of Economics 💰</h1> <hr> <h3 id="people-make-choices">People make choices</h3> <h5 id="because-resources-are-scarce">because resources are scarce</h5> <ul> <li> <p>resource can be anything you use to produce.</p> </li> <li> <p>Money is the most mainstream limited resource.</p> <ul> <li>Buy only one holiday package.</li> <li>Buy only one portion of nasi goreng.</li> </ul> </li> <li> <p>But there are other resources worth noting.</p> <ul> <li>There&rsquo;s only one holiday season in a year.</li> <li>Two nasi gorengs would be too much for my stomach.</li> </ul> </li> </ul> <hr> <h3 id="the-true-cost-of-something-is-its-opportunity-cost">The true cost of something is its opportunity cost</h3> <ul> <li>money is just one type of cost.</li> <li>The true cost of taking a holiday to Hong Kong is going somewhere else.</li> <li>Your holiday can be spent on learning new stuff.</li> <li>What is the cost of doing your degree? <ul> <li>Going straight to work and get experiences.</li> <li>Doing other degrees (biology, chemistry, etc).</li> <li>enjoy life.</li> </ul> </li> <li>essentially, opportunity cost of something is something else you gave up to get it.</li> </ul> <hr> <h3 id="pop-quiz">Pop quiz</h3> <iframe src="https://embed.polleverywhere.com/multiple_choice_polls/27Z726hL5mMDWeaKsBbDQ?controls=none&short_poll=true" width="800px" height="600px"></iframe> <hr> <h3 id="thinking-at-the-margin">Thinking at the margin</h3> <ul> <li>The principle of opportunity cost leads to a marginal thinking.</li> <li>Understand your status quo, and think what action you can do to add a little improvement from it.</li> <li>If you have two hours to study or play, how will you divide it? <ul> <li>what if there&rsquo;s an exam tommorow?</li> <li>If you are tired of studying, would you study more?</li> </ul> </li> </ul> <hr> <h3 id="specialisation-and-gains-from-trade">Specialisation and gains from trade</h3> <ul> <li>During your daily time, you make decisions on allocating how much time to study and to cook, among other things.</li> <li>Since you will die if you don&rsquo;t eat, you can&rsquo;t allocate 0 hour to cook.</li> <li>On the other hand, there are those who are very good cook and will cook for you for a little money.</li> <li>In this case, it may be better if you spend 0 hour to cook, and order food from these chefs.</li> <li>Trade is the reason why I can study economics: I don&rsquo;t have to study how to be a doctor. I will just go to the hospital if I need a medical service.</li> </ul> <hr> <h3 id="specialisation-and-gains-from-trade-1">Specialisation and gains from trade</h3> <ul> <li> <p>Extending to firm level, many outsource part of their business from a third party.</p> <ul> <li>buying <i class="fab fa-microsoft"></i> office probably better than developing our own softwares.</li> <li>why make our own server if we can use <i class="fab fa-aws"></i> ?</li> <li>Use tokopedia instead of making your own e-store.</li> </ul> </li> <li> <p>We can easily extend this to a country level:</p> <ul> <li>Japan makes car because they cannot plant palm oil.</li> </ul> </li> </ul> <hr> <h3 id="incentives-matter">Incentives matter</h3> <ul> <li>People move to cities because there are more opportunities there.</li> <li>People will buy cheaper products given the same price.</li> <li>incentives are not always about money: <ul> <li>You study more on the subjects you like.</li> </ul> </li> </ul> <blockquote class="border-l-4 border-neutral-300 dark:border-neutral-600 pl-4 italic text-neutral-600 dark:text-neutral-400 my-6"> <p><em>&ldquo;ada gula ada semut&rdquo;</em></p> </blockquote> <hr> <h3 id="market-and-intervention">Market and intervention</h3> <ul> <li>often times, market incentives are enough.</li> <li>However, intervention is often used. <ul> <li>education is an example where government intervene heavily.</li> <li>Gojek used subsidy to incentivies drivers and users.</li> </ul> </li> <li>Intervention may be temporary. <ul> <li>The COVID-19 relieve bill (PEN) will likely stop after the pandemic.</li> <li>Gojek&rsquo;s subsidy is removed once they reach economies of scale.</li> </ul> </li> </ul> <hr> <h3 id="things-tend-to-move-to-equilibrium">Things tend to move to equilibrium</h3> <ul> <li>When there is an incentive to do something, there will be more and more people exploit it.</li> <li>As more people do it, the incentive decreases to a point where it is not worth it anymore.</li> <li>examples: <ul> <li>City becomes more crowded (and costly to live in).</li> <li>Stock price stops growing few moments after its IPO.</li> <li>Countries&rsquo; economic growth reduced after they get rich.</li> </ul> </li> <li>Movement towards equilibrium, however, varies. <ul> <li>short run vs long run.</li> <li>individual vs aggregate.</li> </ul> </li> </ul> <hr> <h3 id="conclusion">Conclusion</h3> <ul> <li>We will see how these principles come up again and again as we delve deeper into the course.</li> <li>The principle will be carried over to your overall degree, and life in general.</li> <li>I am not trying to make you an economist, but the principles are very useful.</li> </ul> <hr> <h2 id="testing-graded-quiz">Testing Graded quiz</h2> <hr> <h2 id="housekeeping">Housekeeping!</h2> <ul> <li>Joy is the class rep.</li> <li>We&rsquo;ll use Zoom over Google Meet.</li> <li>Quizizz is used for everyday lecture.</li> <li>what else?</li> </ul> <hr> <h2 id="next-week-supply-and-demand">Next week: Supply and demand</h2>