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MicroeconomicsYanYANChapter1:TheFundamentalsofEconomics(A.Introduction)Youwanttobuyaclockinthegrocerynearthecampus.Thepriceis$20.Afriendtellsyouthatitis$10inthesupermarketindowntown.Wouldyoubuytheclockinthesupermarket?Youwanttobuyacomputerwhichis$2510.whileitis$2500inthesupermarketindowntown.Whereveryoubuythecomputer,itwouldreturntotheproducerifthereisanyproblem.Wherewouldyoubuyit?Chapter1:TheFundamentalsofEconomics(A.Introduction)1.1ScarcityandEfficiencyWhatiseconomics?Economicsisthestudyofhowsocietiesusescarceresourcestoproducevaluablecommoditiesanddistributethemamongdifferentpeople.Whatisefficiency?Efficiencydenotesthemosteffectiveuseofasociety’sresourceinsatisfyingpeople’swantsandneeds.Ineconomics,wesaythataneconomyisproducingefficientlywhenitcannotmakeanyoneeconomicallybetteroffwithoutmakingsomeoneelseworseoff.Chapter1:TheFundamentalsofEconomics(A.Introduction)1.2MicroeconomicsandMacroeconomicsWhatisMicroeconomics?Itisconcernedwiththebehaviorofindividualentitiessuchasmarkets,firmsandhouseholds.Founder:Adamsmith,TheWealthofNationsWhatisMacroeconomics?Itisconcernedwiththeoverallperformanceoftheeconomy.Funder:JohnMaynard,GeneralTheoryofEmploymentChapter1:TheFundamentalsofEconomics(A.Introduction)1.3ThelogicofeconomicsTheposthocfallacyItinvolvestheinferenceofcausality.Itoccurswhenweassumethat,becauseoneeventoccursanotherevent,thefirsteventcausedthesecondevent.广东省的人口死亡率为5.4‰,是全国最低的省份,由此我们就推定生活在广东一定有利于身体健康。FailuretoholdotherthingsconstantItreferstothefailuretoholdotherthingsconstantwhenthinkingaboutanissue.税率对收入的影响FallacyofcompositionWhenyouassumethatwhatistrueforthepartisalsotrueforthewhole,youarecommittingthefallacyofcomposition.一个农场主丰收VS.所有农场主都丰收Chapter1:TheFundamentalsofEconomics(B.TheThreeproblemsofeconomicorganization)Therearethreeproblemsofeconomicorganization:Whatcommoditiesareproducedandinwhatquantities?Howaregoodsproduced?Forwhomaregoodsproduced?Therearethreetypesofeconomies:MarketeconomyCommandeconomyMixedeconomyChapter1:TheFundamentalsofEconomics(C.Society’stechnologicalpossibilities)1.4inputsandoutputsInputsarecommoditiesorservicesthatareusedtoproducegoodsandservices.Outputsarethevarioususefulgoodsorservicesthatresultfromtheproductionprocessandareeitherconsumedoremployedinfurtherproduction.饺子的投入与产出:投入:面粉、肉、蔬菜、调味品、包饺子的技术、擀面杖…………产出:饺子Chapter1:TheFundamentalsofEconomics(C.Society’stechnologicalpossibilities)Factorsofproduction:AnothernameforinputsItcanbeclassifiedintothreeboardcategories:land,laborandcapitalLand(naturalresource):representsthegiftofnaturetoourproductiveprocess.Labor:consistsofthehumantimespentinproduction—workinginautomobilefactories,tilingtheland,teachingschool,orbakingpizzas.Capitalresourcefromthedurablegoodsofaneconomy,producedinordertoproduceyetothergoods.建造房子需要什么生产要素?Chapter1:TheFundamentalsofEconomics(C.Society’stechnologicalpossibilities)1.5TheProduction-PossibilityFrontierSupposetheincomeisfixed,wecanchoosetoproducegunorbutter.(showninthechart)PossibilityButterGunsA015B114C212D39E45F50Chapter1:TheFundamentalsofEconomics(C.Society’stechnologicalpossibilities)Chapter1:TheFundamentalsofEconomics(C.Society’stechnologicalpossibilities)Chapter1:TheFundamentalsofEconomics(C.Society’stechnologicalpossibilities)Chapter1:TheFundamentalsofEconomics(C.Society’stechnologicalpossibilities)1.6OpportunitycostThecostoftheforgonealternativeistheopportunitycostofthedecision.Howtocalculateopportunitycost?Supposethecountrydecidetoincreaseitsgunpurchasefrom9000gunsatDto12000unitsatC,whatistheopportunitycostofthedecision?1millionbutter.Chapter1:TheFundamentalsofEconomicsExercise&DiscussionAssumethatEconolandproduceshaircutsandshirtswithinputsoflabor.Econolandhas1000hoursoflaboravailable.Ahaircutrequires½houroflabor,whileashirtsrequires5hoursoflabor.ConstructEconoland’sproduction-possibilityfrontier.Chapter1:TheFundamentalsofEconomicsConsiderthefollowingproblem:afteryour8hoursadayofsleep,youhave16hoursadaytodeliverbetweenleisureandstudy.LetleisurehoursbetheXvariableandstudyhoursbetheYvariable:1)plotthestraight-linerelationshipbetweenallcombinationsofXandYonablankpieceofgraphpaper.2)letussaythatyouabsolutelyneed6hoursofleisureperday,nomore,noless.Onthegraph,markthepointthatcorrespondsto6hoursofleisure.3)nowconsideramovementalongthecurve:assumethatyoudecidethatyouneedonly4hoursofleisureaday.Plotthenewpoint.Chapter2:MarketsandGovernmentinaModernEconomyImaginewhatprocessdoesmeatexperience?Whatismarket?Itisamechanismthroughwhichbuyersandsellersinteracttodeterminepricesandexchangegoodsandservices.Price=DemandPriceDemandPriceDemandPricecoordinatethedecisionsofproducersandconsumersinamarket.Higherpricestendstoreduceconsumerpurchasesandencourageproduction.Lowerpricesencourageconsumptionanddiscourageproduction.Pricesarethebalancewheelofthemarketmechanism.Chapter2:MarketsandGovernmentinaModernEconomyMarketEquilibriumItrepresentsabalanceamongallthedifferentbuyersandsellers.Pleasenotethefollowingquestions:1.Isitalwaystruethatwhendemandis

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