IntroductiontoEconomicsSECTION1AbstractedfromEconomicsbyPaulA.SamuelsonDesignbyLynneTheFundamentalsofEconomicsCHAPTER1AbstractedfromEconomicsbyPaulA.SamuelsonDesignbyLynneIMCWhystudyeconomics?Wehavecometorealizethereisoneoverridingreasonforlearningthebasiclessonsofeconomics:allyourlife-fromcradletograveandbeyond-youwillrunupagainstthebrutaltruthsofeconomics.Ofcourse,studyingeconomicscannotmakeyouagenius,butwithouteconomicsthediceoflifeareloadedagainstyou.IMCWhatiseconomics?Economics•Exploresthebehaviorofthefinancialmarkets,includinginterestrates,exchangeratesandstockprices.•Examinesthereasonswhysomepeopleorcountrieshavehighincomeswhileothersarepoorandsuggestswaysthatincomesofthepoorcanberaisedwithoutharmingtheeconomy.•Studiesbusinesscycles-theupsanddownsofunemploymentandinflation-alongwithpoliciestomoderatethem.•Studiesinternationaltradeandfinanceandtheimpactsofglobalization.•Looksatgrowthindevelopingcountriesandproposeswaystoencouragetheefficientuseofresources•Askshowgovernmentpoliciescanbeusedtopursueimportantgoalssuchasrapideconomicgrowth,efficientuseofresources,fullemployment,pricestability,andafairdistributionofincome.IMCWhatiseconomics?Economicsisthestudyofhowsocietiesusescarceresourcestoproducevaluablegoodsandservicesanddistributethemamongdifferentindividuals.经济学研究的是一个社会如何利用稀缺的资源生产有价值的商品,并将它们在不同的个体之间进行分配。IMCThetwinthemesofeconomicsScarcityEfficiency•resourcesandgoodsarescarce.•Oursisaworldofscarcity,fullofeconomicgoods.•Asituationofscarcityisoneinwhichgoodsarelimitedrelativetodesires.•Efficiencydenotesthemosteffectiveuseofasociety’sresourcesinsatisfyingpeople’swantsandneeds.•Ineconomics,wesaythataneconomyisproducingefficientlywhenitcannotmakeanyoneeconomicallybetteroffwithoutmakingsomeoneelseworseoff.在经济学中,我们这样讲:再不会使其他人境况变坏的前提下,如果一项经济活动不再有可能增进任何人的经济福利,则该项经济活动就被认为是有效率的。Paretoefficiency帕累托最优Economicgoods:经济品Freegoods:airIMCOrganizationalstructureofeconomicsMicroeconomicsMacroeconomics•Thebranchofeconomicswhichtodayisconcernedwiththebehaviorofindividualentitiessuchasmarkets,firmsandhouseholds.•AdamSmith:thefounderofthefieldofmicroeconomics.TheWealthofnations(1776)•Theothermajorbranchofeconomicswhichisconcernedwiththeoverallperformanceoftheeconomy.•Macroeconomicsdidnotevenexistinitsmodernformuntil1936whenJohnMaynardKeynespublishedhisrevolutionaryGeneralTheoryofemployment,interestandmoney.Individualentity:单个实体Thewealthofnations:《国富论》Overallperformanceoftheeconomy:经济的总体运行《就业,利息与货币通论》IMCTheLogicofEconomicsEconomiclifeisanenormouslycomplicatedhiveofactivity,withpeoplebuying,selling,bargaining,investingandpersuading.Theultimatepurposeofeconomicscienceistounderstandthiscomplexundertaking.Howdoeconomistsgoabouttheirtask?Scientificapproach:thisinvolvesobservingeconomicaffairsanddrawinguponstatisticsandthehistoricalrecord.Theoreticalapproach:allowseconomiststomakebroadgeneralizationsEconometrics(计量经济学):whichappliesthetoolsofstatisticstoeconomicproblems.IMCTheLogicofEconomicsThecommonfallaciesineconomicreasoning:Theposthocfallacy(后此谬误):thefirsfallacyinvolvestheinferenceofcausality(因果推理).Theposthocfallacyoccurswhenweassumethat,becauseoneeventoccurredbeforeanotherevent,thefirsteventcausedthesecondevent.Failuretoholdotherthingsconstant(不能保持其他条件不变):asecondpitfallisfailuretoholdotherthingsconstantwhenthinkingaboutanissue.Remembertoholdotherthingsconstantwhenyouareanalyzingtheimpactofavariableontheeconomicsystem.Thefallacyofcomposition(合成谬误):whenyouassumethatwhatistrueforthepartisalsotrueforthewhole,youarecommittingthefallacyofcomposition.e.g.Ifonefarmerhasabumpercrop,shehasahigherincome;ifallfarmersproducearecordcrop,……Farmincomeswillfall(谷贱伤农)IMCThethreeproblemsofeconomicorganizationWhatHowForwhomWhatcommoditiesareproducedandinwhatquantities?•pizzasorshirts•highqualityshirtsorcheapshirts?•consumptiongoods(pizzas)•investmentgoods(pizza-makingmachines)Howaregoodsproduced?•Whowilldotheproduction,withwhatresourcesandwhatproductiontechniquestheywilluse.•farms/teaches•Electricity–oil,coal,sun•Factories–peopleorrobotsForwhomaregoodsproduced?•distributionofincomeandwealth—fairandequitable•nationalproduct---households•manypeoplepoor---fewrich•Highincomes–lawyers,athletes,autoworkersorventurecapitalists•minimalconsumption—workIMCThethreeproblemsofeconomicorganizationEverysocietymustanswerthreefundamentalquestions:what,howandforwhom.•Whatkindsandquantitiesareproducedamongthewiderangeofallpossiblegoodsandservices?•Howareresourcesusedinproducingthesegoods?•Andforwhomarethegoodsproduced(that’s,whatisthedistributionofincomeandconsumptionamongdifferentindividualsandclasses)?IMCDifferenteconomicsystem•Amarketeconomyisoneinwhichindividualsandprivatefirmsmakethemajordecisionsaboutproductionandconsumption.•Asystemofprices,ofmarkets,ofprofitsandlosses,ofincentivesandrewardsdetermineswhat,howandforwhom.•Firmsproducethecommoditiesthatyieldthehighestprofits(thewhat)bythetechniquesofproductionthatareleastcostly(thehow).Consumptionisdeterminedbyindividuals’decisionsabouthowtospendthewagesandpropertyincomesgeneratedbytheirlaborandprope