[MUSIC] Hi, I'm Peter Navarro and I'd like to welcome you to this two course sequence in the principles of economics including both microeconomics and macroeconomics. And just FYI, these two courses can be taken in any order or as standalone courses. As to just what exactly is the difference between micro and macro? Well microeconomics focuses on individual markets and individual actors like consumers, and producers, and workers. And micro is all about how things like prices, and wages, and rents, are set in the marketplace. And perhaps most interestingly, how firms and industries are organized strategically and competitively. In contrast, macroeconomics is concerned with bigger picture questions like, how fast is the economy growing, and is it likely to fall into a recession? What are the rates of inflation and productivity, and what do these rates mean for wage growth and corporate profitability? And is it perhaps time for the government to use tools like fiscal or monetary policy to stimulate a recessionary economy? As to whether these economic courses are right for you, certainly if you're an undergraduate business major or interested in a business career, you've come to the right digital space. That's because I've personally designed this two course sequence to highlight the many and varied applications of economic principles to both business strategy, and the broader business environment. That said, these courses should also be of great interest to any of you out there in University of California land who want to fulfill general education credits. At the same time that you seek to lay down a strong foundation for your financial future. Here I cannot promise to make you rich beyond your wildest dreams. But I am almost certainly going to guarantee that you will fare far better in that jungle called life after graduation if you have a solid understanding of how economics can be applied to your own personal and professional lives. >> One, two, three, ZOD, ZOD, ZOD all right. >> [APPLAUSE] >> Finally, these economic principles courses can also be of great value as online supplements in any MBA program. As I've learned from my own experience teaching at the Merage School of Business here at UC Irvine, these online courses are particularly helpful to the many MBA students who have not taken undergraduate economics, as well as for those MBA students who simply need a business oriented refresher in economics. So I hope you enjoy these courses wherever and whoever you may be. With that said, let's move now on to the first big task of this lesson. [MUSIC] What we're going to do now is take a neat little virtual tour through the main components of any business school curriculum. Just why are we doing this, and of course in economics to put it simply, it's an exercise in, let's look at the business education forest before we get lost amongst the individual course trees. And my broader goal here is to show you how the many and varied insights and tools of economics provide the essential glue that binds these pieces of the business education puzzle together. For example, when we work our way through consumer theory and microeconomics, you will quickly see that the tools of supply and demand and concepts like price elasticities can certainly help marketing executives figure out how to profitably price and position a firm's products. At the same time, the insights and models of production theory provide a mighty boost to any firm's operations management team seeking to produce the firm's products at the lowest possible cost. But it's not just microeconomics that is so valuable in running an enterprise. A solid grounding in macroeconomic principles and business forecasting can also help executives more profitably manage the organization over the course of the ups and downs in the business cycle. Here although it may seem counter intuitive, recessions can be a great time for firms to increase their advertising and capital investment. So as to be ready for the next profitable economic expansion. Yet far too often, penny pinching firms do just the opposite in recessions and lose great profit opportunities. At any rate, and that's the big, big picture. Let's turn now to a quick overview of the standard business curriculum. [MUSIC]
