Jonathan Gruber is such an incredible instructor, he and MIT should be immensely proud of these lectures.

@SakshiSingh-xq1ze

Жыл бұрын

Can u recommend this type of lec for macroeconomics? Pls

@bazingapuzza

7 ай бұрын

​@@SakshiSingh-xq1ze there is one on KZread from another big American school.

00:00 Setting Up Budget Constraints 05:25 - - > Marginal Rate of Transformation 07:16 - - > Weight Watchers Example 12:16 Opportunity Set 19:15 Tangency 22:10 The Maths 31:00 Food Stamps Example 38:39 - - > Imposing Preferences 44:13 - - > Effective? (vs money injection)

@THEPBFELIPE

2 жыл бұрын

Thank you so much :) Very nice of you!

@abdalla_elhendawy

2 ай бұрын

u r a life saver

If I don't have budget constraints I would attend MIT after high school.

@yeahwhat6363

3 жыл бұрын

@@arrowmouse this ratio seems low, here in India top stem universities (IITs) have 2,000,000 + aspirants and only 10k get in 😂

@actualideas8078

3 жыл бұрын

Their faculty vacations on Epstein’s island. I would never give them my money

@hainamtran2232

3 жыл бұрын

@@yeahwhat6363 The quality of the Applicants are not the same lol

@gouravtada

3 жыл бұрын

@@hainamtran2232 well said

@yusufyakub9068

3 жыл бұрын

You’re correct

Thank you so so much for publishing this. I'm an adult student finishing my degree with an online university and I cannot, for the love of God, understand a single word of the crappy tutorials that my university provides. These videos not only make everything a lot easier to understand but it also makes it so much fun and engaging. Thank you MIT and thank you Professor Gruber.

@dr.cranium9080

2 жыл бұрын

what uni did you choose?

Mr. Gruber makes microecon Waaayyyyyyyyy more interesting than my classes in my Masters!!! Thanks MIT!!!!

@NazriB

2 жыл бұрын

Lies again? Bet Clic Acura

@SakshiSingh-xq1ze

Жыл бұрын

Can u recommend any macroeconomics lecture series?

@crisronaldo8365

8 ай бұрын

​@@SakshiSingh-xq1ze Principle of macroeconomics by Missouri State University

@suindude8149

2 ай бұрын

Really in case of the previous lectures also so inculcating that generates so many models in my mind solving the crude level industrial problems.

Absolutely love the way he explain things with ease and also with great examples with which you can relate.

Given my buget, 최상의 선택을 하는 것(=further indifferent curve)= tangency 를 구하면 됨, 그 bundle=optimal choice(AC)

This is going hand-in-hand with my online microeconomics class. Thank you so much for posting these lectures, I wish I took this class in person, but this makes up for it!

Thanks also to the video editors for showing all the diagrams.

A good idea would be to download the transcript, play the video at 1.75 speed and look at the transcript and the graphs (could been found in the handouts section). If you don't get something you could play the video at lower speed.

I told my mom I was attending MIT she was so happy but little does she know my budget constraint only allows me to go to KZread University

Professor Gruber is single handily saving my economics exam!!

I am not even economics students yet videos are bingeable it's really good

Where are the black and red dots for the opportunity set?

@isabelledesouzaafonso2-a161

Ай бұрын

im looking for them too

Absolutely well done and definitely keep it up!!! 👍👍👍👍👍

Thank you for publishing these!

This guy is an awesome professor

40:00 i was getting really mad at Jon saying he was just doing positive economics when the choice of "shelter" as good B rather than "drugs" has obvious normative implications..... so i'm glad he addresses this, i should've had more faith in him :)

Bingeing on Prof. Gruber's lectures.

Thank you so much for this excellent free education.

@mohdluqman1336

3 жыл бұрын

Are you on Facebook

@jayangli

2 жыл бұрын

Same. Really like these free lectures from MIT. Thankyou. They don't grant certification on MITopencourseware, but the free learning for anyone that wants to and get education from MIT is just fantastic.

Drafts : 36:00

Finished, thanks for sharing

One point I wanna make to the "food/shelter" case, if most people living below the poverty line do prefer shelter, it is better to not give them cash but other life essentials. Because if everybody spend more money on shelter, they would just drive up the low-end housing price. Because they are the target group of that market anyways, so if all of them are capable of/willing to pay more money, the competition'd make price goes up and money goes to the landlords.

Thank you MIT

This lectures are so good it's feel it's made by some mit instructor

let's assume that your parents have given you some amount of income, we'll call it "WHY"

In the post Covid days the budget constratint has its niche to identify the inflationary rate in case of buying the inventory in case of Economic quantity demanded with the revised assumptions. Hence,its most pivotal for the downward slope in the production curve of the industrial phenomenon. Hence,all the subsidirat affecting the quantity demanded will be the hardest portion which needs the utmost discussion often. Thus marginal replacement of goods may be a hugh value in case of diminishing of marginal returns in case of managers.

Thank you for this.

I hadn't budget, so I am attending MIT on youtube after graduation in my private Master degree programme

Very nice! Also this showed that 4Ps (in the Philippines) is not a good aide to alleviate poverty.

In lesson 2 professor Gruber mentioned addictive behaviour, like smoking, can change your utility function over time. So I think an idealized perfectly rational agent should take this into account, but in practice doesn't look so simple. In these cases, are economists more amenable to some form of paternalism?

@pickyraccoon

2 жыл бұрын

Look for Richard Thaler and Cass Sustein. They coined the term "libertarian paternalism" and it's well used in behavioral economics as a whole. 😊

@suindude8149

2 ай бұрын

In case of the optimization of life's own temporal value,the most optimistic way in the risk dissoluted scenario of the macroeconomic behaviour,it's really the inverse utility of paternalism if we don't accept the indifference to the smoking habit,the utility of other habits like overeating or any kind of portion that affects the micro temporality creates a long difference in the human behaviour. In that context one indifference of temporality comes in my way of thought as the technical improvement in the world of cheap and sustainable technical imposition to increase the micro utility to support the entire product mix would be a great strategy concentric in case of the product generation.Hence a complete inversion of inverted utility to the actual utility function hence,the same is here the increase in marginal utility by relinquishing the smoking habit would be far more better replacement of everything having high utility function including a saviour in the irrational behaviour to the human being the high penetratiin of sustainability.

These free courses are very useful for students from a third world country like me.

Can a person compare more than two variable at a time? Is his focus of attention not limited to two things? What's the point of creating three dimensional plane that represents some models of economics?

I love this lecture. I'm economist who want to learn more.

How to shut a student up: "That is a really good question and we will come back to that later"

This just made life in college a whole lot easier.

26:12 watch continue to see food stamps and cash transfer

Thanks MIT

What you described at the end really is the saying, you can’t make a poor man rich. The concept of wisdom over dolllars. Teach a man to fish type of thing. People who get money quick don’t know how to manage it unless they have earned the wisdom prior.

As someone who came from Architecture to economics, know things different. In architecture it's said - less s more In economics - more s better than less

@SakshiSingh-xq1ze

Жыл бұрын

Can u recommend series lecture of intermediate macroeconomics ?

@jat1339

Жыл бұрын

@@SakshiSingh-xq1ze macroeconomics k liye nptel k kaafi ache hai lecture

@vishnukanhan8809

Жыл бұрын

Wow if I can ask what made you switch from architecture to economics?

Where can I watch the math courses guys? The ones he says are on friday...

Budget constrained is key to happiness

Shouldn't the decrease in budget constraint (imposed by parents) lead the students to opt the cookies more because they are cheaper and hence the slope of curve to change (increase -vely) thus creating a fractional MRT?

@7amseel

Жыл бұрын

MRT is the ratio of market prices of two goods. It is independent of your income or budget constraints. The decrease in income will in some combination lower both the amount of cookies and the amount of pizza. However, the exact combination by which pizza slices and cookies get lowered depend upon your utility function which ultimately makes your indifference curve.

What if I found a place that sold $5 cookies and not $6 so I could buy more for less? How would this effect the equation after the fact? I see how it’d stay if the $5 cookie was the original price but let’s say it’s not..? That or like.. what if there’s a sale?

QUESTION: minute 28.48 > " you're willing to give up 2.5 p for 1 c" is incorrect right? Looking at the graph (minute 29.18) the indifference curve looks like that you're willing to give up 2.5 p for 2 c as the interval on the x axis is not 1 but 2. Can someone either tell me that I am right, but more likely explain why I am wrong?

@7amseel

Жыл бұрын

"You're willing to give up 2.5 P for 1 C" is correct. If you look at the graph (29:18) more closely, you will see that at point A, the value at x axis is 2, but also the value of y axis is 5. So basically, you are willing to give up 5 pizzas for 2 cookies which is same us giving up 2.5 pizzas for 1 cookie.

Can someone explain why A offers more utility on less budget?? I mean-- MUc/MUp > Pc/Pp??

@suindude8149

2 ай бұрын

it might be arising out of the budgetary notion in case of planning or strategizing for the optimal output or utility in sense of personal micro Economics to derive the high value of constrained budget of the whole in case of the value generation of the industrial output.

At 29:05 how is market telling that we can trade a cookie for only half slice of pizza?

I already passed my UG: why I am watching this? It's an addiction, lol

@anudarib

2 жыл бұрын

Yo I am addicted to isekai mangas and webtoons and been using all my concentration skill to focus on this class Yours is good addiction

where can i find the "math" part of the course. 19:15 he said they will do more mathmatically on friday

@rm2kmidi

2 жыл бұрын

I didn't go to MIT, but when I took Microeconomics we did all the math in our quiz sections and not during the lecture.

@lucayan7982

2 жыл бұрын

@@rm2kmidi do you know how can I get quiz that they did?

@rm2kmidi

2 жыл бұрын

@@lucayan7982 not a quiz. Quiz sections are smaller class groups you attend, usually lead by a TA. So the students would be learning this on non-lecture days.

@rm2kmidi

2 жыл бұрын

@@lucayan7982 "Quiz Section" is what we call the smaller breakout classes in large lecture classes at universities in the US. It doesn't have anything to do with quizzes or taking tests. Typically you attend lecture three times a week and attend quiz section twice a week. I was just explaining that the math-oriented parts of this class were likely all discussed in smaller groups with the teaching assistant and probably wont be on video. At least that's how it was when I was in school.

@lucayan7982

2 жыл бұрын

@@rm2kmidi thank you for the clarification

Does anyone know where 0.5 comes from in 26:50 ? Thanks a lot!!

@fevengetachew1035

Жыл бұрын

It is from derivation of the squareroot like the derivation of squareroot of xy is (1\2 times square root of xy )times the derivation of xy itself.....i am not sure if I explained it in understandable way but I suggest you to derivate the function by yourself first and crosscheck it

@anudeike

7 ай бұрын

I think it comes from the fact that the Pizza is worth twice as much as the cookies so P_c/Pp = 0.5. Not sure exactly but that's what it seems.

12:54 Where are these black and red dots he is talking about?

@heya-fq2nb

3 жыл бұрын

Here maybe he's talking about the attainable and non attainable combinations where initially the dots were up to previous budget line but now they are within new budget line(black ones) and the remaining between new and previous budget line (red) are not attainable.

If I were a Math/IT/Science student back at high school, and without budget constraints, I would have applied for MIT

@mitocw

2 жыл бұрын

If you were that high school student, we would tell you to ignore the budget constraints and recommended you apply anyways. 🙂 MIT is need-blind and full-need. If you were accepted, MIT would make sure you could afford MIT tuition... even if they had to fully cover it. Visit sfs.mit.edu/undergraduate-students/the-cost-of-attendance/making-mit-affordable/ for more info.

@economics5595

10 ай бұрын

@@mitocw this comment made my day today! :)

27:41 I don't understand the part "du/dp = 0.5xc / root (pxc)" why 0.5? Can any one help me?

@shivanshsubramanian5525

3 жыл бұрын

dU/dP = d(root(PC))/dP = 0.5*C/root(PC) Its just differentiation

@user-ze1tc1ur9p

3 жыл бұрын

@@shivanshsubramanian5525 where's the 0.5 from? and why 0.5*c／root(pc)....thanks..

@davidbarroso8523

3 жыл бұрын

@@user-ze1tc1ur9p The derivative of a function (ax)^n is a*n*(ax)^(n-1) where a is a constant. The square root of PC is equivalent to saying (PC)^(1/2) or (PC)^0.5, so if you're deriving with respect to P, P is your x, C is a, and 0.5 is n, so the derivative would be C*0.5*(PC)^(0.5-1) or 0.5*C*(PC)^(-0.5). x^-n is equivalent to 1/(x^n), a negative power just means you move it to the denominator, so you get 0.5*C/(PC)^0.5, and again, x^0.5 is the same as square root of x, so finally you're left with 0.5*C/squareroot(PC). If you do it with respect to C, C is your x instead, you get 0.5*P/squareroot(PC). dU/dP means derivative of U w/ respect to P, dU/dC means derivative of U w/ respect to C.

@ahmettayyipaydin6925

3 жыл бұрын

@@davidbarroso8523 thank you so much. I was confused but I see now

@Adityakumar-is2ke

11 ай бұрын

@@ahmettayyipaydin6925 thank you so much broo i just wasnt thinking of taking c as constant and your explaination cleared it up

My marginal utility is very high so i intend to attend mit

Does anyone know how to access the recitation for the course, or if its available.

@mitocw

2 жыл бұрын

Recitations are not available for the course. To see what we do have, visit MIT OpenCourseWare at: ocw.mit.edu/14-01F18. Best wishes on your studies!

@miltonfriedman5833

2 жыл бұрын

@@mitocw tnx.

@dennis7928

Жыл бұрын

​@@mitocw QUESTION: minute 28.48 > " you're willing to give up 2.5 p for 1 c" is incorrect right? Looking at the graph (minute 29.18) the indifference curve looks like that you're willing to give up 2.5 p for 2 c as the interval on the x axis is not 1 but 2. Can someone either tell me that I am right, but more likely explain why I am wrong?

POV: you're searching for the notes.

where did 0.5 come from when doing MUp and MUc?

@suindude8149

2 ай бұрын

These equation is quite tricky to make the indifference in the buying behaviour of the product in case of obtaining diligence of his entire family. It seems the Economics is tremendously the unitasking.

anyone care to help me on 27:59 why MuP=dU/dP has a equation of 0.5xC?? where does the C comes from? I am totally fine with the derivative part, I know where the 0.5 comes from, but C?? why Mu of Pizza has anthing to do with cookies?

@user-kl7mu7rz1n

7 ай бұрын

the question actually translate into how to calculate dP... I forgot all my learning on derivatives of that part.

This course would be considered an intermediate microeconomics course at most universities.

@Andalusian_

10 ай бұрын

Think so too. They probably do the multivariable calculus in the side-lectures

19:36

I got lost with the optimum constraints calculation, any help here please

I'm just a small successful business owner just soaking up this information. Don't mind me....

I don’t understand 16:00 the question : Changing slope does not affect if one buy more cookies than pizza and overall decrease in income affect all. Please help me thanks

@jela1277

3 жыл бұрын

Your question is hard to understand, but I can explain that because the slope is the ratio of the quantity of cookies to pizza, changing the slope means you change the quantity of cookies or pizza or both (see algebra)

@tianshuzhao6966

3 жыл бұрын

he is saying that the budget changes (since your disposable income decreases) but the proportion of trade-off between two products remains (since the price of each type remains and the value of each type for you is the same. i.e. the marginal substitution for you is the same). you see the parallel shift of the budget lines but the slope remains.

3:30 they are delicious and equally expensive

Nice..

2:00

27:00

I was searching for guy who post notes of lecture in comment . But sadly didn't find .

@vishnukanhan8809

Жыл бұрын

Same lol

38:42 I still don’t get why there is a horizontal line from 5000 to x2, could someone explain?

@Michelle_Matchahan

6 ай бұрын

hey hey. Because government gave the poors the debit card which can be only used for food, the people cannot use this money for shelters. Therefore, people cannot spend any money to shelters and now it has restricted in that 5000

27:27, where did the 0.5 come from??

@chaitanyasharma3921

2 жыл бұрын

He differentiated root p*c, which is equal to 0.5 *C or P( depends on what is taken constant)/root of P*C

I am late but at perfect place

Summary: sometimes we just have to tangent our Pp more often, it's called marginal utility.

Can y'all tell me why that cash given to Africans boosted their income in short run and the effect got nullified in long run?

@yellowusbrickus4821

2 жыл бұрын

Probably something to do with structural inequality issues, for example an insurance firm may offer insurance to rich people, R or poor people, P. When P takes out insurance on their cheaper car, the risk of it breaking down are higher and therefore their insurance costs will be higher as a proportion of their income. This could take away P's ability to increase their wealth because the insurance costs eventually wear away their initial endowment. If the group used their money to buy cars to double their wages, they would not be able to afford good cars and thus they would be subject to high insurance costs, leading them back to a point of not being able to afford insurance or a car. This example is obviously not what happened but in built mechanisms can lead to greater wealth inequality over the longer term.

👍👍

Never thought of SNAP as paternalistic, make me think of universal income, maybe cash to everyone is not a bad thing.

@rm2kmidi

2 жыл бұрын

I feel like people shouldn't think of it as an entitlement but that their friends and neighbors that pay taxes want to help them, but want some say on how that money is spent. Also, wouldn't person y still be better off because it frees up $300 for more shelter. They're not $500 better, but they're not worse off.

@6and1

2 ай бұрын

AI push will eventually lead to a more universal income approach due to job losses but if you create a linear equation they haven't quite perfected the income but it's around $1250 a month. You would most likely need a a wide adoption of the digital dollar to track spending on illicit things

λ*, Mv = Mp ? The best deal. ? P = MR = MC ?

@suindude8149

2 ай бұрын

While price goes for Marginal revenue then there comes the law of diminishing returns in the case with Marginal cost equating price as well.

Is this an undergraduate or graduate course?

@mitocw

2 жыл бұрын

This is an undergraduate course. See ocw.mit.edu/14-01F18 for more info and materials. Best wishes on your studies!

Move in with someone and give them your food stamps for shelter, go to the food bank for food.

We are forcing them on Food Stamps, because Someone who is below poverty line will use Cash for other purposes.

what is du/dp? 26:54 ?????????????????????????????????????????????????

@user-js4ez2yz9b

3 жыл бұрын

Derivative

@davidbarroso8523

3 жыл бұрын

The derivative of a function (ax)^n is a*n*(ax)^(n-1) where a is a constant. The square root of PC is equivalent to saying (PC)^(1/2) or (PC)^0.5, so if you're deriving with respect to P, P is your x, C is a, and 0.5 is n, so the derivative would be C*0.5*(PC)^(0.5-1) or 0.5*C*(PC)^(-0.5). x^-n is equivalent to 1/(x^n), a negative power just means you move it to the denominator, so you get 0.5*C/(PC)^0.5, and again, x^0.5 is the same as square root of x, so finally you're left with 0.5*C/squareroot(PC). If you do it with respect to C, C is your x instead, you get 0.5*P/squareroot(PC). dU/dP means derivative of U w/ respect to P, dU/dC means derivative of U w/ respect to C.

@tianshuzhao6966

3 жыл бұрын

marginal utility of one unit of product A divided by that of product B. this indicating the marginal substitution between these two products to remain the same level of utility.

@oris2723

2 жыл бұрын

Can y'all tell me why that cash given to Africans boosted their income in short run and the effect got nullified in long run?

Interesting college professor

@robbyosborne9708

5 ай бұрын

He definitely makes the subject of microeconomics interesting.

Simplying assumption: Budget=Income 5:25 MRT Shocking the System 17:05 *Constrained Choices* 30:58 Example of food stamps

MIT budget restraints why they use chalk boards? I'm so distracted by this poor guy struggling through the series and hung up thinking of the opportunity costs.

46 min in

its 20 under the root, not 10.

yup UBI everyone, its actually better than government subsidize programs and such😆

I just gave this video it's 1k like, because I like pizza and cookies

Funny how $12 for pizza is expensive in america

@Learn2SingInEnglish

3 жыл бұрын

why would it not be? hes talking about per slice

@tyranmcgrath6871

3 жыл бұрын

@@Learn2SingInEnglish right you are

@tyranmcgrath6871

3 жыл бұрын

That's some premium pizza

Nptel lectures are way better than mit courses but i thank mit for the free courses though...

@rakkhnaka

2 жыл бұрын

lol

@SakshiSingh-xq1ze

Жыл бұрын

Not way better but both r comparable nd good for students like us(budget constraints)

@jat1339

Жыл бұрын

Are bhai chup chap pdh le na , dono ache hai

If they need cash people in my country (BD) will sell their food for money 😂

23:06 BIG PP

Me watching at 0.25 speed

Food stamps don't buy diapers

Славяне на месте?

Please add Arabic subtitles

So, what are cookies ?

ab itne gandiwade me rhne ka koi matlab nhi h

Ye cat yaha par hi sab stop kar de to iski health ke liye thik rahega

The professor talks too fast. Slow down..

And if you think the rules of food stamps scare people to not doing that.... Think again. They are buying crack. Oops the govt says I can't buy my drug dealer food. Lol. That's like thinking a killer won't break into a house because it's trespassing. Broken logic So in reality they should 100% get cash. Because where theres a will there is a way.