chapter_1Preliminaries(微观经济学-华侨大学,JeffCal
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ChoiceUnderUncertainty(微观经济学-华侨大学,Jef
Expected Value
The weighted average of the payoffs or values resulting from all possible outcomes.
The probabilities of each outcome are used as weights
Generally, expected value is written as:
E(X) Pr1X1 Pr2X 2 ... Prn X n
Chapter 5
Slide 13
Describing Risk
Variability
The extent to which possible outcomes of an uncertain even may differ
The first job is based entirely on commission.
The second is a salaried position.
Chapter 5
Slide 15
Describing Risk
Variability
A Scenario
There are two equally likely outcomes in the first job--$2,000 for a good sales job and $1,000 for a modestly successful one.
Objective Interpretation Based on the observed frequency of past events
Chapter 5
Slide 6
Describing Risk
Interpreting Probability
ofCompetitiveMarkets(微观经济学-华侨大学,Jeff
Price
10
7
5
Producer Surplus
Consumer Surplus
0
Chapter 1Consumer A
Consumer B
Q0
Consumer C
S
Between 0 and Q0 consumers A and B receive a net gain from buying the product-consumer surplus
(A - B) + (-A - C) = -B - C
The deadweight loss is the inefficiency of the price controls or the loss of the producer surplus exceeds the gain from consumer surplus.
the deadweight loss.
D
Q1
Q0
Q2
Quantity
7
Change in Consumer and Producer Surplus from Price Controls
Observations:
The total loss is equal to area B + C.
The total change in surplus =
Chapter 1
20
Welfare Loss When Price Is Held Below Market-Clearing Level
Price
B
P0
A
C
P1
Chapter 1
Q1
Q0
S
When price is regulated to be no higher than P1, the deadweight loss given by triangles B and C results.
第一讲导言(高鸿业微观经济学第四版华侨大学郑文智)
第一讲导言(高鸿业微观经济学第四 版华侨大学郑文智)
二、拓展与完善
从消费者行为是否符合效用最大化或偏好最大化开始，
相继出现了显示偏好理论、时间偏好与跨时期选择理论、
风险条件下的选择理论、以及选择理论在家庭、婚姻、罪
与罚、政治市场等领域的广泛应用。
从考察企业行为是否符合利润最大化或成本最小化入
手，经济学家们发展了各种企业理论。如：企业理论，我
第一讲导言(高鸿业微观经济学第四 版华侨大学郑文智)
经济学的十大原理
原理一：人们面临权衡关系 原理二：某种东西的成本是为了得到它而放弃的东西 原理三：理性人考虑边际量 原理四：人们会对激励作出反映 原理五：贸易能使每个人状况更好 原理六：市场通常是组织经济活动的一种好方法 原理七：政府有时可以改善市场结果 原理八：一国的生活水平取决于它生产物品与劳务的能力 原理九：当政府发行了过多货币时物价上升 原理十：社会面临通货膨胀与失业之间的短期交替关系
第一讲导言(高鸿业微观经济学第四 版华侨大学郑文智)
经济学学科结构
入门：
经济学原理
理论基础： 微观经济学、宏观经济学
分析方法: 计量经济学、数理经济学
应用学科： 共经济学（公共财政）、
货币金融学、制度经济学、农业经济学、
发展经济学、劳动经济学、环境经济学、
了解经济学的研究对象。
▪ 基本概念 ▪ 相关知识 ▪ 发展史
第一讲导言(高鸿业微观经济学第四 版华侨大学郑文智)
经济学的产生：
由于人类欲望是无穷，而资源是有限的， 于是就存在着： （1）生产什么(what) （2）生产多少(how many) （3）如何生产(how) （4）为谁生产(for whom) （5）何时生产(when)等问题。为了解决以上 问题，就产生了经济学。
二、拓展与完善
从消费者行为是否符合效用最大化或偏好最大化开始，
相继出现了显示偏好理论、时间偏好与跨时期选择理论、
风险条件下的选择理论、以及选择理论在家庭、婚姻、罪
与罚、政治市场等领域的广泛应用。
从考察企业行为是否符合利润最大化或成本最小化入
手，经济学家们发展了各种企业理论。如：企业理论，我
第一讲导言(高鸿业微观经济学第四 版华侨大学郑文智)
经济学的十大原理
原理一：人们面临权衡关系 原理二：某种东西的成本是为了得到它而放弃的东西 原理三：理性人考虑边际量 原理四：人们会对激励作出反映 原理五：贸易能使每个人状况更好 原理六：市场通常是组织经济活动的一种好方法 原理七：政府有时可以改善市场结果 原理八：一国的生活水平取决于它生产物品与劳务的能力 原理九：当政府发行了过多货币时物价上升 原理十：社会面临通货膨胀与失业之间的短期交替关系
第一讲导言(高鸿业微观经济学第四 版华侨大学郑文智)
经济学学科结构
入门：
经济学原理
理论基础： 微观经济学、宏观经济学
分析方法: 计量经济学、数理经济学
应用学科： 共经济学（公共财政）、
货币金融学、制度经济学、农业经济学、
发展经济学、劳动经济学、环境经济学、
了解经济学的研究对象。
▪ 基本概念 ▪ 相关知识 ▪ 发展史
第一讲导言(高鸿业微观经济学第四 版华侨大学郑文智)
经济学的产生：
由于人类欲望是无穷，而资源是有限的， 于是就存在着： （1）生产什么(what) （2）生产多少(how many) （3）如何生产(how) （4）为谁生产(for whom) （5）何时生产(when)等问题。为了解决以上 问题，就产生了经济学。
ofCompetitiveMarkets(微观经济学-华侨大学,Jeff
The total change in surplus =
(A - B) + (-A - C) = -B - C
The deadweight loss is the inefficiency of the price controls or the loss of the producer surplus exceeds the gain from consumer surplus.
Producer surplus is the total benefit or revenue that producers receive beyond what it cost to produce a good.
Chapter 1
Slide 4
Consumer and Producer Surplus
Price
10
7
5
Producer Surplus
Consumer Surplus
0
Consumer A
Consumer B
Q0
Consumer C
S
Between 0 and Q0 consumers A and B receive a net gain from buying the product-consumer surplus
the deadweight loss.
D
Q1
Q0
Q2
Quantity
Slide 7
Change in Consumer and Producer Surplus from Price Controls
Observations:
The total loss is equal to area B + C.
(A - B) + (-A - C) = -B - C
The deadweight loss is the inefficiency of the price controls or the loss of the producer surplus exceeds the gain from consumer surplus.
Producer surplus is the total benefit or revenue that producers receive beyond what it cost to produce a good.
Chapter 1
Slide 4
Consumer and Producer Surplus
Price
10
7
5
Producer Surplus
Consumer Surplus
0
Consumer A
Consumer B
Q0
Consumer C
S
Between 0 and Q0 consumers A and B receive a net gain from buying the product-consumer surplus
the deadweight loss.
D
Q1
Q0
Q2
Quantity
Slide 7
Change in Consumer and Producer Surplus from Price Controls
Observations:
The total loss is equal to area B + C.
chapter_3ConsumerBehavior(微观经济学-华侨大学,Jeff
Consumer Behavior
These two problems require an understanding of the economic theory of consumer behavior.
Consumer Behavior
There are three steps involved in the study of consumer behavior.
Consumer Behavior
When the food stamp program was established in the early 1960s, the designers had to determine to what extent the food stamps would provide people with more food and not just simply subsidize the food they would have bought anyway.
Chapter 3
Consumer Behavior
Topics to be Discussed
Consumer Preferences Budget Constraints Consumer Choice Revealed Preferences
Topics to be Discussed
Consumer Preferences
Market Baskets
Three Basic Assumptions 1) Preferences are complete. 2) Preferences are transitive. 3) Consumers always prefer more of any good to less.
《微观经济学》平狄克 第1章
四、实证分析与规范分析
实证分析（positive)：
实证分析就是描述经济事件“是什么”或“不是什么”，揭示经 济变量之间的因果关系。 例如:
对进口汽车实施配额会产生何种影响？（价格、产量、消费 者、本国汽车产业的工人） 提高汽油消费税会产生何种影响？（汽油价格、消费者对车 的偏好、人们用车的频率） 它是微观经济学的核心问题。
Chapter 1: Preliminaries
Slide 24
1.2 什么是市场？
1、市场——通过相互作用决定一种或一系列商品价格 的买卖双方的集合。
把买卖双方带到一起并便利交换的制度安排，是 彼此相互作用以寻求某种交换之可能的买卖双方 的集合（解释） 市场界定—确定一个具体的市场应包括哪些买方 和卖方。 套利（arbitrage)—人们在一个地方低价买进， 然后在另一个地方高价卖出。
Slide 37
计算实际价格:禽蛋和大学教育的价格
1970
消费者物价指数 (1983 = 100) 38.8
1975 1980
53.8 82.4 $0.84 $4,912 $0.40 $2,313
1985 1990
107.6 $0.80 $8,156 $0.29 $2,941 130.7 $0.98 $12,800 $0.30 $3,800
本章要点
微观经济学的主题 什么是市场 实际价格与名义价格 为什么要学习微观经济学
Chapter 1: Preliminaries
Slide 7
经济学两大分支
微观经济学 （microeconomics)
宏观经济学(macroeconomics)
ofCompetitiveMarkets微观经济学华侨大学Jeff.ppt
1 Tcf = 1 billion mcf If QD = 18, then P = $2.40
[18 = -5PG + 3.75(8)] A = (18 billion mcf) x ($1/mcf) = $18 billion B = (1/2) x (2 b. mcf) x ($0.40/mcf) = $0.4 billion C = (1/2) x (2 b. mcf) x ($1/mcf) = $1 billion
Chapter 9
Slide 6
Change in Consumer and Producer Surplus from Price Controls
Price
P0 Pmax
Chapter 9
Suppose the government imposes a price ceiling Pmax
which is below the market-clearing price P0.
Chapter 9
Slide 20
Welfare Loss When Price Is Held Below Market-Clearing Level
Price
B
P0
A
C
P1
Chapter 9
Q1
Q0
S
When price is regulated to be no higher than P1, the deadweight loss given by triangles B and C results.
Supply: QS = 14 + 2PG + 0.25PO
Quantity supplied in trillion cubic feet (Tcf)
[18 = -5PG + 3.75(8)] A = (18 billion mcf) x ($1/mcf) = $18 billion B = (1/2) x (2 b. mcf) x ($0.40/mcf) = $0.4 billion C = (1/2) x (2 b. mcf) x ($1/mcf) = $1 billion
Chapter 9
Slide 6
Change in Consumer and Producer Surplus from Price Controls
Price
P0 Pmax
Chapter 9
Suppose the government imposes a price ceiling Pmax
which is below the market-clearing price P0.
Chapter 9
Slide 20
Welfare Loss When Price Is Held Below Market-Clearing Level
Price
B
P0
A
C
P1
Chapter 9
Q1
Q0
S
When price is regulated to be no higher than P1, the deadweight loss given by triangles B and C results.
Supply: QS = 14 + 2PG + 0.25PO
Quantity supplied in trillion cubic feet (Tcf)
Monopsony(微观经济学-华侨大学,JeffCaldwell)
This can be seen graphically:
orMC MR
Chapter 1
Slide 12
Maximizing Profit When Marginal Revenue Equals Marginal Cost
The Monopolist’s Output Decision
At output levels below MR = MC the decrease in revenue is greater than the decrease in cost (MR > MC).
Chapter 1
Slide 6
Monopoly
The monopolist is the supply-side of the market and has complete control over the amount offered for sale.
Profits will be maximized at the level of output where marginal revenue equals marginal cost.
Chapter 1
Slide 11
Monopoly
ቤተ መጻሕፍቲ ባይዱ
Monopolist’s Output Decision
1) Profits maximized at the output level where MR = MC
2) Cost functions are the same
(Q)R(Q)C(Q) /QR/QC/Q0M CMR
Chapter 1
Slide 10
Monopoly
Observations 1) To increase sales the price must fall 2) MR < P 3) Compared to perfect competition
orMC MR
Chapter 1
Slide 12
Maximizing Profit When Marginal Revenue Equals Marginal Cost
The Monopolist’s Output Decision
At output levels below MR = MC the decrease in revenue is greater than the decrease in cost (MR > MC).
Chapter 1
Slide 6
Monopoly
The monopolist is the supply-side of the market and has complete control over the amount offered for sale.
Profits will be maximized at the level of output where marginal revenue equals marginal cost.
Chapter 1
Slide 11
Monopoly
ቤተ መጻሕፍቲ ባይዱ
Monopolist’s Output Decision
1) Profits maximized at the output level where MR = MC
2) Cost functions are the same
(Q)R(Q)C(Q) /QR/QC/Q0M CMR
Chapter 1
Slide 10
Monopoly
Observations 1) To increase sales the price must fall 2) MR < P 3) Compared to perfect competition
chapter_3ConsumerBehavior(微观经济学-华侨大学,Jeff
Apple-Cinnamon Cheerios The Food Stamp Program.
Chapter 3: Consumer Behavior
Slide 4
Consumer Behavior
General Mills had to determine how high a price to charge for AppleCinnamon Cheerios before it went to the market.
E
D U1
Food
30
40
(units per week)
Slide 16
Consumer Preferences
Indifference Curves
Indifference curves slope downward to the right. If it sloped upward it would violate the assumption that more of any commodity is preferred to less.
Chapter 3: Consumer Behavior
Slide 5
Consumer Behavior
When the food stamp program was established in the early 1960s, the designers had to determine to what extent the food stamps would provide people with more food and not just simply subsidize the food they would have bought anyway.
Chapter 3: Consumer Behavior
Slide 4
Consumer Behavior
General Mills had to determine how high a price to charge for AppleCinnamon Cheerios before it went to the market.
E
D U1
Food
30
40
(units per week)
Slide 16
Consumer Preferences
Indifference Curves
Indifference curves slope downward to the right. If it sloped upward it would violate the assumption that more of any commodity is preferred to less.
Chapter 3: Consumer Behavior
Slide 5
Consumer Behavior
When the food stamp program was established in the early 1960s, the designers had to determine to what extent the food stamps would provide people with more food and not just simply subsidize the food they would have bought anyway.
微观经济学目录
微观经济学《微观经济学—现代观点》范里安囊括了微观经济学的大部分内容，初级用书。
《微观经济学—理论和运用》尼克尔森连接中级微观经济学和高级微观经济学的书，没有数学推导但是大多数论题都直接联系高微内容《微观经济学—高级教程》瓦里安那些对金融经济学有兴趣的同学，主要推荐阅读不确定性和资本市场，时间，一般均衡等几章。
宏观经济学《宏观经济学—全球视角》萨克斯包罗万有，把宏观经济学的各派观点都详细罗列一遍，要有宏观经济学基础的同学阅读起来会感到有趣。
《宏观经济学》布兰查德这本书是我读过的书里，对总供给总需求讲的最清楚最详细的了。
《高级宏观经济学》戴维罗默高宏教材，经济增长部分写的一般，但波动理论部分和投资消费部分非常出彩。
《高级宏观经济学》布兰查德，斯坦利费雪对兰姆赛模型有非常详细的阐述，同时在经济波动方面，讲述大量不同于主流（真实经济周期）的新观点：如混沌，太阳黑子等。
但本书数学较多，而且对宏观经济基础和直觉要求甚高，建议有所成后进一步阅读。
国际宏观经济学《汇率与国际金融》劳伦斯.科普兰大量介绍各种国际宏观经济学以及汇率决定理论，特别是对货币主义理论，蒙代尔模型，多恩布什超调模型和资产市场模型有详细讨论，而且有大量实例。
《国际经济学》克鲁格曼国际经济学入门课书籍，文笔优美，用简单语言阐述现象时能引起读者思考。
《国际经济学》甘尔道夫连接了中级教材和高级教材，数学用的比较多，同时给出详细解释。
写作方面不同于美式经济学家知识面狭窄而采众家之长，同时对经济传统给与尊重《国际经济学基础》奥普斯塔法，罗格夫国际经济学圣经，该书前言宣称将建立统一的国际宏观经济学体系。
采用微观基础为推导根据，让人信服。
有大量数学推导，适合高阶学习。
最优化理论：《数理经济学基本方法》蒋中一该书对经济学中有所应用的微积分，线性代数等方面知识作了全面的解释，并以经济学中应用为例子，很适合文科学生恶补经济数学之用。
在我看来，把这本书真正看通看透，就能应付大部分课程需要了。
andMarketDemand(微观经济学-华侨大学,JeffCaldw-PPT文档资料
1) The level of utility that can be attained changes as we move along the curve.
Chapter 1
Slide 8
Individual Demand
The Individual Demand Curve
Two Important Properties of Demand Curves
Food
2656 3385
Clothing
859 978
1274 2253 2371 1918 4109 1363
1514 2054 3243 4454 2536 2137 1820 2052 4888 5429 1772 1778
2654 4300 5793 9898 1540 1266 2214 2642 6220 8279 2614 3442
Individual Demand
Engel Curves
Engel curves relate the quantity of good consumed to income.
If the good is a normal good, the Engel curve is upward sloping.
If the good is an inferior good, the Engel curve is downward sloping.
Chapter 1
Slide 19
Engel Curves
Income ($ per
month) 30
20
Engel curves slope upward for
G
•H:Pf/Pc = .5/2 = .25 = MRS
Chapter 1
Slide 8
Individual Demand
The Individual Demand Curve
Two Important Properties of Demand Curves
Food
2656 3385
Clothing
859 978
1274 2253 2371 1918 4109 1363
1514 2054 3243 4454 2536 2137 1820 2052 4888 5429 1772 1778
2654 4300 5793 9898 1540 1266 2214 2642 6220 8279 2614 3442
Individual Demand
Engel Curves
Engel curves relate the quantity of good consumed to income.
If the good is a normal good, the Engel curve is upward sloping.
If the good is an inferior good, the Engel curve is downward sloping.
Chapter 1
Slide 19
Engel Curves
Income ($ per
month) 30
20
Engel curves slope upward for
G
•H:Pf/Pc = .5/2 = .25 = MRS
范里安微观经济学（第九版）Chapter1
范里安微观经济学（第九版）Chapter1Chapter1 What is Economics?Methodological FeaturesRationality: maximizing the object function of the decision-makerIt’s not necessarily selfishness and can be consistent with altruismA kind of simplification: we care about average behavior of peopleWe test hypothesis, not assumptionsStable preferences: constant throughout the modelPreferences are unobservableEmphasis on man-made constraints and institutional design The “moral blood” of real estate developers in ChinaWhy are some animals dying out?Equilibriumanalysis: a tool to aggregate behaviors of individuals and predict the outcome of human interactionsA Puzzle of Happiness: Californian vs. OregonPeltzman effect and offsetting behaviorReinterpretation of Marriage Law in China: Are Mothers-in-laws hurt by this legal change?Efficiency criterion: a normative notion of optimalityWhat is efficient outcome?Is there any room for improvement in efficiency?Positive & Normative AnalysisPositive Analysis–statements that describe the relationship of cause and effectQuestions that deal with explanation and predictionWhat will be the impact of an import quota on foreign cars?What will be the impact of an increase in the gasoline excise tax?Normative Analysis–analysis examining questions of what ought to be ?Often supplemented by value judgments Should the government impose a larger gasoline tax?Should the government decrease the tariffs on imported cars?。
chapter_3ConsumerBehavior(微观经济学-华侨大学,Jeff
Chapter 3: Consumer Behavior
Slide 11
Consumer Preferences
Market Baskets
Three Basic Assumptions 1) Preferences are complete. 2) Preferences are transitive. 3) Consumers always prefer more of any good to less.
3) Finally, we will combine consumer preferences and budget constraints to determine consumer choices.
What combination of goods will consumers buy to maximize their satisfaction?
A U3
U2
U1
Food (units per week)
Slide 21
Consumer Preferences
Clothing (units per week)
U2 U1
Indifference Curves Cannot Cross
A D
The consumer should be indifferent between A, B and D. However, B contains more of both goods than D.
B
Chapter 3: Consumer Behavior
Food (units per week)
Slide 22
Consumer Preferences
Clothing 16
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What are the causes of poverty in the United States.
Chapter 1
26
Positive versus Normative Analysis
Normative Analysis
Normative analysis addresses issues from the perspective of “What ought to be?”
Normative analysis involves ethical precepts and value judgments
Chapter 1
27
Examples for Normative analysis
Should the government give more money to poor people?
14
Try to understand the phrase“scarce resources”in the following
Every gun that is made,every warship launched,every rocket fired signifies,in the final sense,a theft from those who hunger and are not fed.
Chapter 1
30
What is a Market?
Market definition
Determination of the buyers,sellers,and range of products that should be included in a particular market.
Chapter 1
11
Preliminaries
The Linkage Between Micro and Macro-economics
Microeconomics is the foundation of macroeconomic analysis
Chapter 1
12
The Themes of Microeconomics
According to Mick Jagger* & the Rolling Stones “You can’t always get what you want”
Chapter 1
13
The Themes of Microeconomics
Why Not? Limited Resources
Chapter 1
N.Gregory Mankiw
Chapter 1
6
Definition of macroeconomics
Macroeconomics is the study of economy-wide phenomena,including inflation,unemployment, and economic growth.
Chapter 1
29
What is a Market?
Markets vs. Industries
Industries are the supply side of the market.
A industry is a collection of firms that sell the same or closely related products.
Chapter 1
16
A planned economy
Allocation decisions of
scarce resources are made mostly by the government(like
Cuba,North Korea,Former Soviet Union)
Chapter 1
Chapter 1
20
The Themes of Microeconomics
Microeconomics and Prices
The role of prices in a market economy(like invisible hand in guiding economic activities---Adam Smith,1776)
What Is a Market? Real Versus Nominal Prices Why Study Microeconomics?
Chapter 1
4
Definition of Economics
Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.
a mathematical representation of a theory used to make a prediction,such as econometrics models
Chapter 1
24
Positive Versus Normative Analysis
Positive Analysis
N.Gregory Mankiw
Chapter 1
7
Preliminaries
Microeconomics deals with: Behavior of individual units When Consuming • How we choose what to buy
Chapter 1
8
Preliminaries
Markets: The interaction of consumers and producers
Chapter 1
10
Preliminaries
Macroeconomics deals with: Analysis of aggregate issues: Economic growth Inflation Unemployment
Chapter 1
31
What is a Market?
Arbitrage
Buying a product at a low price in one location and selling at a high price in another
Chapter 1
32
What is a Market?
Chapter 1
22
Theories and Models
Theories are used to explain and predict observed phenomena in terms of a set of basic rules and assumptions(like economic man).
Chapter 1
2
Modern Microeconomics includes:
Chapter 13 Game theory
Chapter 17 Markets with asymmetric information
Chapter 1
3
Topics to be Discussed
The Themes of Microeconomics
A.Samቤተ መጻሕፍቲ ባይዱelson
Chapter 1
25
Examples for positive analysis
What will be the impact of an import quota on foreign cars?
What will be the impact of an increase in the gasoline excise tax?
How prices are determined
Chapter 1
21
Theories and Models
Economic is concerned with the explanation and prediction of observed phenomena,which is based on theories.
P.A.Samuelson
Chapter 1
5
Definition of microeconomics
Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.
President D.D.Eisenhower
Chapter 1
15
The Themes of Microeconomics
Microeconomics Allocation of Scarce Resources and Trade-offs In a planned economy In a market economy
1. Consumer Theory
2. Workers
3. Theory of the Firm
Chapter 1
19
Example of tradeoffs
Gun and Butter Efficiency and equity Risk and return Work and leisure
Microeconomics deals with: Behavior of individual units When Producing • How we choose what to produce
Chapter 1
9
Preliminaries
Chapter 1
26
Positive versus Normative Analysis
Normative Analysis
Normative analysis addresses issues from the perspective of “What ought to be?”
Normative analysis involves ethical precepts and value judgments
Chapter 1
27
Examples for Normative analysis
Should the government give more money to poor people?
14
Try to understand the phrase“scarce resources”in the following
Every gun that is made,every warship launched,every rocket fired signifies,in the final sense,a theft from those who hunger and are not fed.
Chapter 1
30
What is a Market?
Market definition
Determination of the buyers,sellers,and range of products that should be included in a particular market.
Chapter 1
11
Preliminaries
The Linkage Between Micro and Macro-economics
Microeconomics is the foundation of macroeconomic analysis
Chapter 1
12
The Themes of Microeconomics
According to Mick Jagger* & the Rolling Stones “You can’t always get what you want”
Chapter 1
13
The Themes of Microeconomics
Why Not? Limited Resources
Chapter 1
N.Gregory Mankiw
Chapter 1
6
Definition of macroeconomics
Macroeconomics is the study of economy-wide phenomena,including inflation,unemployment, and economic growth.
Chapter 1
29
What is a Market?
Markets vs. Industries
Industries are the supply side of the market.
A industry is a collection of firms that sell the same or closely related products.
Chapter 1
16
A planned economy
Allocation decisions of
scarce resources are made mostly by the government(like
Cuba,North Korea,Former Soviet Union)
Chapter 1
Chapter 1
20
The Themes of Microeconomics
Microeconomics and Prices
The role of prices in a market economy(like invisible hand in guiding economic activities---Adam Smith,1776)
What Is a Market? Real Versus Nominal Prices Why Study Microeconomics?
Chapter 1
4
Definition of Economics
Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.
a mathematical representation of a theory used to make a prediction,such as econometrics models
Chapter 1
24
Positive Versus Normative Analysis
Positive Analysis
N.Gregory Mankiw
Chapter 1
7
Preliminaries
Microeconomics deals with: Behavior of individual units When Consuming • How we choose what to buy
Chapter 1
8
Preliminaries
Markets: The interaction of consumers and producers
Chapter 1
10
Preliminaries
Macroeconomics deals with: Analysis of aggregate issues: Economic growth Inflation Unemployment
Chapter 1
31
What is a Market?
Arbitrage
Buying a product at a low price in one location and selling at a high price in another
Chapter 1
32
What is a Market?
Chapter 1
22
Theories and Models
Theories are used to explain and predict observed phenomena in terms of a set of basic rules and assumptions(like economic man).
Chapter 1
2
Modern Microeconomics includes:
Chapter 13 Game theory
Chapter 17 Markets with asymmetric information
Chapter 1
3
Topics to be Discussed
The Themes of Microeconomics
A.Samቤተ መጻሕፍቲ ባይዱelson
Chapter 1
25
Examples for positive analysis
What will be the impact of an import quota on foreign cars?
What will be the impact of an increase in the gasoline excise tax?
How prices are determined
Chapter 1
21
Theories and Models
Economic is concerned with the explanation and prediction of observed phenomena,which is based on theories.
P.A.Samuelson
Chapter 1
5
Definition of microeconomics
Microeconomics is the study of how households and firms make decisions and how they interact in specific markets.
President D.D.Eisenhower
Chapter 1
15
The Themes of Microeconomics
Microeconomics Allocation of Scarce Resources and Trade-offs In a planned economy In a market economy
1. Consumer Theory
2. Workers
3. Theory of the Firm
Chapter 1
19
Example of tradeoffs
Gun and Butter Efficiency and equity Risk and return Work and leisure
Microeconomics deals with: Behavior of individual units When Producing • How we choose what to produce
Chapter 1
9
Preliminaries