C 1
THE CONTENTS OF THIS COURSE
PART Ⅰ: Introduction
PART Ⅱ: Supply and demand
PART Ⅲ: Elasticity and its application
PART Ⅳ: Consumer behavior theory
PART Ⅴ: Firm behavior theory
PART Ⅵ: Factors market theory
PART Ⅶ: Market failures
Asssment Items
Class participation 20%
Papers and class prentation
20%
Final examination 60%
Ten Principles of Economics
Chapter 1
The purpo of Chapter 1 is to lay out ten economic principles that will rve as building blocks for the rest of the text. The ten principles can be grouped into three categories: how people make decisions, how people interact, and how the economy works as a whole. Throughout the text, references will be made repeatedly to the ten principles.
LEARNING OBJECTIVES:
that economics is about the allocation of
scarce resources.
that individuals face tradeoffs.
the meaning of opportunity cost.
how to u marginal reasoning when making
decisions.
how incentives affect people’s behavior.
why trade among people or nations can be
good for everyone.
why markets are a good, but not perfect, way
to allocate resources.
what determines some trends in the overall
economy.
1.1Economics. . .
1 .Economy
. . . The word economy comes from a Greek word for “one who manages a houhold.”
A houhold and an economy
face many decisions:
Who will work?
What goods and how many of them should be produced?
What resources should be ud in production?
At what price should the goods be sold?
2 .Scarcity . . .
. . . means that society has limited resources and therefore cannot produce all the goods
and rvices people wish to have.
3.Limited Resources
direction是什么意思
The resources that are ud to produce goods and rvices are:
Labor
启航考研
Land
Capital
Entrepreneurship
Limited Resources
Labor
The time and effort that we devote to producing goods and rvices.
Land
utmost
The gifts of nature that we u to produce goods and rvices.
tomtato
Limited Resources
Capital
The goods we u to produce other goods and rvices.两次运球
• Includes physical capital
– interstate highways, buildings, and dams
• and human capital
– the knowledge and skill that people obtain from education and on-the-job training
Entrepreneurship
The resource that organizes labor, land, and capital.
byte
4.Unlimited Wants
Our wants are insatiable.
Humans, by nature, would like to have more of tho things they find desirable.
终日奔波只为饥 方才一饱便思衣
衣食两般皆俱足 又想娇容美貌妻
取得美妻生下子 恨无天地少根基
买到田园多广阔 出入无船少马骑
槽头扣了骡和马 叹无官职被人欺
县丞主簿还嫌小 又要朝中挂紫衣
作了皇帝求仙术 更想登天跨鹤飞
若要世人心里足 pkp除是南柯一梦西
5.Resources and Wants
We have limited resources.
We have unlimited wants.
This leads to scarcity.
Scarcity exists when there are insufficient resources to satisfy people’s wants.
6.Economics
Economics is the study of the choices people make to cope with scarcity.
Economists study. . .
How people make decisions.
How people interact with each other.
The forces and trends that affect the economy as a whole.
1.2Ten Principles of Economics
People face tradeoffs.
The cost of something is what you give up to get it.
Rational people think at the margin.
People respond to incentives.
Ten Principles of Economics
Trade can make everyone better off.
Markets are usually a good way to organize economic activity.
Governments can sometimes improve economic outcomes.
Ten Principles of Economics
convenient的反义词 The standard of living depends on a country’s production.
Prices ri when the government prints too much money.friendly
Society faces a short-run tradeoff between inflation and unemployment.
1. People face tradeoffs.
“There is no such thing as a free lunch!”
职业培训1. People face tradeoffs.
To get one thing, we usually have to give up another thing.
Guns v. butter
Food v. clothing
Leisure time v. work
Efficiency v. equity
1. People face tradeoffs.
Efficiency means society gets the most that it can from its scarce resources.
Equity means the benefits of tho resources are distributed fairly among the members of society.
2. The cost of something is what you give up to get it.
