曼昆经济学1

Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.ALecturePresentationinPowerPointtoAccompanyPrinciplesofEconomicsSecondEditionbyN.GregoryMankiwPreparedbyMarkP.Karscig,DepartmentofEconomics&Finance,CentralMissouriStateUniversity.TenPrinciplesofEconomicsChapter1Copyright©2001byHarcourt,Inc.Allrightsreserved.Requestsforpermissiontomakecopiesofanypartoftheworkshouldbemailedto:PermissionsDepartment,HarcourtCollegePublishers,6277SeaHarborDrive,Orlando,Florida32887-6777.Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.Economy......ThewordeconomycomesfromaGreekwordfor“onewhomanagesahousehold.”Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.Ahouseholdandaneconomyfacemanydecisions:Whowillwork?Whatgoodsandhowmanyofthemshouldbeproduced?Whatresourcesshouldbeusedinproduction?Atwhatpriceshouldthegoodsbesold?Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.SocietyandScarceResources:Themanagementofsociety’sresourcesisimportantbecauseresourcesarescarce.Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.Scarcity......meansthatsocietyhaslimitedresourcesandthereforecannotproduceallthegoodsandservicespeoplewishtohave.Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.EconomicsEconomicsisthestudyofhowsocietymanagesitsscarceresources.Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.Economistsstudy...Howpeoplemakedecisions.Howpeopleinteractwitheachother.Theforcesandtrendsthataffecttheeconomyasawhole.Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.TenPrinciplesofEconomics1.Peoplefacetradeoffs.2.Thecostofsomethingiswhatyougiveuptogetit.3.Rationalpeoplethinkatthemargin.4.Peoplerespondtoincentives.HowPeopleMakeDecisionsHarcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.TenPrinciplesofEconomics5.Tradecanmakeeveryonebetteroff.6.Marketsareusuallyagoodwaytoorganizeeconomicactivity.7.Governmentscansometimesimproveeconomicoutcomes.HowPeopleInteractHarcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.TenPrinciplesofEconomics8.Thestandardoflivingdependsonacountry’sproduction.9.Pricesrisewhenthegovernmentprintstoomuchmoney.10.Societyfacesashort-runtradeoffbetweeninflationandunemployment.HowtheEconomyasaWholeWorksHarcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.1.Peoplefacetradeoffs.“Thereisnosuchthingasafreelunch!”Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.1.Peoplefacetradeoffs.Togetonething,weusuallyhavetogiveupanotherthing.Gunsv.butterFoodv.clothingLeisuretimev.workEfficiencyv.equityMakingdecisionsrequirestradingoffonegoalagainstanother.Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.1.Peoplefacetradeoffs.Efficiencymeanssocietygetsthemostthatitcanfromitsscarceresources.Equitymeansthebenefitsofthoseresourcesaredistributedfairlyamongthemembersofsociety.Efficiencyv.EquityHarcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.2.Thecostofsomethingiswhatyougiveuptogetit.Decisionsrequirecomparingcostsandbenefitsofalternatives.Whethertogotocollegeortowork?Whethertostudyorgooutonadate?Whethertogotoclassorsleepin?Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.2.Thecostofsomethingiswhatyougiveuptogetit.Theopportunitycostofanitemiswhatyougiveuptoobtainthatitem.Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.3.Rationalpeoplethinkatthemargin.Marginalchangesaresmall,incrementaladjustmentstoanexistingplanofaction.Peoplemakedecisionsbycomparingcostsandbenefitsatthemargin.Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.4.Peoplerespondtoincentives.Marginalchangesincostsorbenefitsmotivatepeopletorespond.Thedecisiontochooseonealternativeoveranotheroccurswhenthatalternative’smarginalbenefitsexceeditsmarginalcosts!Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.LALakerbasketballstarKobeBryantchosetoskipcollegeandgostraighttotheNBAfromhighschoolwhenoffereda$10millioncontract.4.Peoplerespondtoincentives.Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.5.Tradecanmakeeveryonebetteroff.Peoplegainfromtheirabilitytotradewithoneanother.Competitionresultsingainsfromtrading.Tradeallowspeopletospecializeinwhattheydobest.Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.6.Marketsareusuallyagoodwaytoorganizeeconomicactivity.Inamarketeconomy,householdsdecidewhattobuyandwhotoworkfor.Firmsdecidewhotohireandwhattoproduce.Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.6.Marketsareusuallyagoodwaytoorganizeeconomicactivity.AdamSmithmadetheobservationthathouseholdsandfirmsinteractinginmarketsactasifguidedbyan“invisiblehand.”Harcourt,Inc.itemsandderiveditemscopyright©2001byHarcourt,Inc.6.Marketsareusuallyagoodwaytoorganizeeconomicactivity.Becausehouseholdsandfirmslookatpriceswhendecidingwhattobuyandsell,theyunknowinglytakeintoaccountthesocialcostsoftheiractions.Asaresult,pricesguidedecisionmakerstoreachoutcomesthattendtomaximizethewelfareofsocietyasawhole.Harcourt,Inc.itemsandderiveditemscopyrig