国经第一部分

▪Warming up▪origin of economy▪The word economy comes from the Greek word for “one who manages a house-hold.”▪A household faces many decisions. It must decide which members of the household do which tasks and what each member gets in return.▪Like a household, a society faces many decisions.▪Economics is the study of how society manages its scarce resources.▪Ten Principles of EconomicsPRINCIPLE #1: PEOPLE FACE TRADEOFFSThere is no such thing as a free lunch.Making decisions requires trading off one goal against another.One of the tradeoffs society faces is between efficiency and equityAcknowledging life’s tradeoffs is important because people are likely to make good decisions only if they understand the options that they have available.Because people face tradeoffs, making decisions requires comparing the costs and benefits of alternative courses of action. In many cases, however, the cost of someaction is not as obvious as it might first appear.▪PRINCIPLE #3: RATIONAL PEOPLE THINK AT THE MARGIN▪In many situations, people make the best decisions by thinking at the margin.▪A rational decision maker takes an action if and only if the marginal benefit of the action exceeds the marginal cost.▪EX：How many years to stay in school.▪PRINCIPLE #4:PEOPLE RESPOND TO INCENTIVES▪Price incentives▪Public policy incentives▪Law incentives▪Moral incentives▪Countries as well as families benefit from the ability to trade with one another.Trade allows countries to specialize in what they do best and to enjoy a greater variety of goods and services.▪PRINCIPLE #6:MARKETS ARE USUALLY A GOOD WAYTO ORGANIZE ECONOMIC ACTIVITY▪the success of market economies is puzzling.▪in a market economy, no one is looking out for the economic well-being of society as a whole. Free markets contain many buyers and sellers of numerous goods and services, and all of them are interested primarily in their own well-being.▪In his 1776 book An Inquiry into the Nature and Causes of the Wealth of Nations, economist Adam Smith made the most famous observation in all of economics: Households and firms interacting in markets act as if they are guided by an “invisible hand”that leads them to desirable market outcomes.▪PRINCIPLE #7:GOVERNMENTS CAN SOMETIMESIMPROVE MARKET OUTCOMESThere are two broad reasons for a government to intervene in the economy: to promote efficiency and to promote equity.That is most policies aim either to enlarge the economic pie or to change how the pie is divided.▪Market Failure1、Externality2、Market power▪PRINCIPLE #8:A COUNTRY’S STANDARD OFLIVING DEPENDS ON ITS ABILITY TOPRODUCE GOODS AND SERVICES▪Almost all variation in living standards is attributable to differences in countries’productivity—that is, the amount of goods and services produced from each hour of a worker’s time.▪PRINCIPLE #9:PRICES RISE WHEN THEGOVERNMENT PRINTS TOO MUCH MONEYPRINCIPLE #10:SOCIETY FACES A SHORT-RUN TRADE OFF BETWEEN INFLATION AND UNEMPLOYMENT▪Main tools of international economics▪production possibilities frontier▪consumer’s preferences and social indifference curve▪general equilibrium▪production possibilities frontier▪a graph that shows the combinations of output that the economy can pos sibly produce given the available factors of production and the available production technology▪production possibilities frontier▪The consumer’s preferences▪The consumer’s preferences allow him to choose among different bundles of Pepsi and pizza. If you offer the consumer two different bundles, he chooses the bundle that best suits his tastes. If the two bundles suit his tastes equally well, we say that the consumer is indifferent between the two bundles.▪indifference curvea curve that shows consumption bundles that give the consumer the same level of satisfaction▪indifference curve▪FOUR PROPERTIES OF INDIFFERENCE CURVESProperty 1: Higher indifference curves are preferred to lower ones.Property 2: Indifference curves are downward sloping.Property 3: Indifference curves do not cross.Property 4: Indifference curves are bowed inward.▪The use of social indifference curve▪Equilibrium Theory▪Body of analysis examining the balance of interrelated variables of an economy and their tendency to resist change.▪Partial Equilibrium▪Developed by French economist Antoine Augustin Cournot(1801-1877) and English political economist Alfred Marshall(1892-1924), partial equilibrium theory examines the conditions of equilibrium in an individual market or in part of a national economy.▪Partial equilibrium theory usually looks at the relationship between two economic variables, assuming other variables are constant in value.▪General Equilibrium▪First developed by French-born economist Leon Walras(1834-1910), general equilibrium theory studies simultaneous equilibrium in a group of related markets.▪封闭经济下的一般均衡一般均衡条件与均衡解决定一般均衡条件有三个：1、生产均衡；MRT=p x/p y2、消费均衡；MRS=p x/p y3、市场出清。