What is economics
chapter 1 what is economics
1 WHAT ISC h a p t e rECONOMICS?A n s w e r s t o t h e R e v i e w Q u i zPage 41. List some examples of scarcity in Australia today.An example of scarcity at the economy-wide level would be people with lower incomes being forced tochoose between food and petrol due to high prices for both. An example of scarcity at an individual levelwould be a person unable to afford both life-saving (or life-enhancing) medicine and food. At a morestudent-oriented level, examples of scarcity include not enough income to afford both tuition and a nicecar, and not enough learning capacity to study for both an Economics exam and a Chemistry exam in onenight.2. Use the headlines in today’s news to provide some examples of scarcity around the world.A headline in National Post in July 2008 was “Last-Frontier Forest is at Risk from Boom.” This storydiscusses how the “global resource boom is threatening one of the world’s last tropical-forest frontiers: theMerauke region of Indonesia …”. The story points out the scarcity of tropical rainforests as well as thescarcity of mineral reserves and how the two are colliding.3. Use today’s news to illustrate the distinction between microeconomics and macroeconomics.Microeconomics: Examples of today’s news that illustrate microeconomic issues are: How will a rise in foodprices change what people buy? What will happen to the number of students attending university if HECS fees were to increase? What will happen to employment of low-skilled workers if the minimum wage isincreased? Macroeconomics: Examples of today’s news that illustrate macroeconomic issues are: How willthe Australian government’s stimulus package influence the national debt? What would happen to totaloutput in the economy if income tax rates were increased or reduced?Page 91. Describe the broad facts about what, how, and for whom goods and services are produced.What gets produced is significantly different today than in the past. Today the economy produces a greater value of services, such as medical operations, teaching, and hair styling, than goods, such as pizza, cars, and computers. How goods and services are produced is determined by business decisions about how thefactors of production, land, labour, capital, and entrepreneurship, are combined to make the goods andservices we consume. Land includes all natural resources, both renewable natural resources such as timber,and non renewable natural resources such as natural gas. Labour’s quality depends on human capital.Human capital is obtained by work experience and through schooling which has increased over the yearswith far more people completing high school and attending TAFE’s and universities. Finally, for whomgoods and services are to be produced depends on the way income is distributed to citizens. Thisdistribution in market economies such as Australia is far from equal: The 20 percent of people with thelowest income earn much less than 20 percent of the nation’s total income, while the 20 percent of peoplewith the highest incomes earn a disproportionate share of total income. On average, men earn more thanwomen and university graduates more than high school graduates.2C H A P T E R12. Use headlines from the recent news to illustrate the potential for conflict between self-interestand the social interest.Your students’ examples will vary according to the headlines. One example of an issue concerns importrestrictions. Take the ethanol industry for an example and the February 4, 2008 headline from Reuters“Bush budget doesn't alter ethanol import tariff”. When U.S. ethanol producers convince the governmentto limit or eliminate imports of ethanol from other nations such as Brazil, it helps the workers andbusinesses in the U.S. ethanol industry earn higher wages and profits, respectively. This outcome servestheir self-interest. However, it hurts all companies that use ethanol in their products, as well as allconsumers when they buy petrol with ethanol blended in. This decision does not serve the social interest.This is because consumers lose more than the combined gain of domestic ethanol producers (in higherwages and profits) and the government (in tariff revenue): real GDP falls.Page 121. Provide three everyday examples of tradeoffs and describe the opportunity cost involved ineach.Three examples are:a) When a student sleeps late rather than of going to his or her early morning class, the student trades offadditional sleep for study time. The opportunity cost of the decision is a lower grade on the exam.b) When a student running late for class parks his or her car illegally, the student trades off saving time forthe risk of a fine. The potential opportunity cost of the decision is the goods and services that cannot bepurchased if the student receives the fine.c) A student trades off higher income by taking a part-time job for less leisure time and study time. Theopportunity cost is less leisure and lower grades.2. Provide three everyday examples to illustrate what we mean by choosing at the margin.Three examples are:a) When a student faces both a Chemistry and an Economics exam in one day, the student mustdetermine whether spending the last hour studying a little more chemistry or a little more economics willyield a better contribution (marginal benefit) to his or her aggregate marks.b) A university student who is buying a computer must decide whether the marginal benefit of adding 1GB of additional memory is worth the marginal cost of the additional memory.c) A football fan with a choice of standing in the outer or a seat located under shelter with a better view ofthe game must determine whether the marginal benefit of watching the game from a seat is worth themarginal cost of the higher ticket price.3. How do economists predict changes in choices?People’s choices change when their incentives, that is the marginal benefit and/or marginal cost, of thechoice changes. So economists predict changes in choices by determining when and how the marginalbenefit and/or marginal cost change, and then predict what choices bring the greatest net benefit.4. What do economists say about the role of institutions in promoting the social interest?Economists emphasize that institutions, such as private property protected by a system of laws, andmarkets that enable voluntary exchange, affect people’s incentives. The goal is to have institutions and laws that channel people’s choices so that private choices promote the social interest. Good examples are lawsagainst dangerous driving and taxes on littering and pollution.Page 141. What is the distinction between a positive statement and a normative statement? Provide anexample (different from those in the chapter) of each type of statement.A positive statement is a description of how the world is. It is testable. A normative statement is adescription of how the world ought to be. It is, by its very nature, not testable because there is noW H A T I S E C O N O M I C S?3 universally approved criterion by which the statement can be judged. “I will receive the highest possiblegrade for this course,” is a positive statement made by a student — it might not be true, but it is testable.“I deserve the highest possible grade for this course,” is a normative statement. Whether someone agreeswith it depends on his or her interpretation of what one has to do to deserve the highest possible grade. 2. What is a ‘model’? Can you think of a model that you might use (probably without thinking ofit as a model) in your everyday life?A model is a simplification of the real world which is used to solve problems and/or make predictions.Architects and engineers construct small scale models of their creations to see whether and how thosecreations will look and work in reality. Medical students use inanimate skeletons, corpses and humanimages to learn how living bodies work. Physicists’ models of the universe may embody physical lawsexpressed in algebraic terms. Geographical and GPS maps are useful models of the real world which we use whenever we travel to unfamiliar places. A ‘live’ economic model of a market could involve an experimentor ‘game’, in which one group of persons are buyers and transact with another group who are sellers:collusion within each group is either allowed or forbidden to predict the effect of collusion on marketprices. However, most economic models are simply ‘thought experiments’. The most common example ofa thought experiment is when we think hard about the possible uses and pleasure to be derived from anarticle which we could buy for a given price. This leads to the conclusion, ‘if I bought that article it wouldbe worth $X to me’. A more complicated example is ‘If I install solar power, what is its annual dollar valueto me if I can export (sell) electricity to the grid at a price of 60 cents a unit during daylight hours, shiftingas much as possible of my consumption to the night (when the sun does not shine), for which I pay only20 cents a unit, which is the same price I must pay for any electricity I have to buy from the grid duringdaytime?’3. What are the three ways in which economists try to disentangle cause and effect?Economists use models to understand some aspect of the economic world. Testing the predictions ofmodels makes it necessary to disentangle cause and effect. To overcome this problem, economists havethree methods of testing their models: using a natural experiment, using a statistical investigation, andusing economic experiments. A natural experiment is a situation that arises in the ordinary course of life inwhich one factor being studied varies and the other factors are the same. This method allows theeconomist to focus on the effect of the factor that differs between the two situations. A statisticalinvestigation looks for correlations between variables. However, determining whether the correlationactually reflects causation can be difficult. An economic experiment puts people into decision makingsituations and then varies the relevant factors one at a time to determine each factor’s effect.4. How is economics used as a policy tool?Individuals, businesses, and governments use economics as a policy tool. Individuals who seek to maximise their net benefits of taking actions use the concepts of marginal benefit and marginal cost when makingdecisions about undertaking full time higher education or full time employment, paying cash or credit fora purchase, and working or enjoying leisure. Businesses also use the concepts of marginal benefit andmarginal cost when making decisions about what to produce, how to produce, and even how many hoursto stay open. Finally governments also use marginal benefit and marginal cost when deciding issues such as the level of taxes, the amount to fund higher education, or the level of tariffs on imports.5. What is the role of marginal benefit and marginal cost analysis in the use of economics as apolicy tool?To make good decisions, a decision maker must compare the marginal benefit of an action to its marginalcost. If the marginal benefit of an action exceeds its marginal cost, then the decision maker shouldundertake the action because the benefit of the action exceeds its cost and adds to net benefit. Conversely,if the marginal benefit is less than the marginal cost, then the decision maker should not undertake theaction because the benefits of the action fall short of its costs and detract from net benefit.4C H A P T E R1A n s w e r s t o t h e P r o b l e m s a n d A p p l i c a t i o n s1. Apple Computer Inc. decides to make songs freely available in unlimited quantities at theiTunes store.a. How does Apple’s decision change the opportunity cost of a song?Apple’s decision decreases the opportunity cost of a tune by removing the previous monetary cost of 99¢per tune.b. Does Apple’s decision change the incentives that people face?Apple’s decision changes people’s incentives. For example, it increases people’s incentives to buy an iPodand take advantage of the newly “free” music available on iTunes.c. Is Apple’s decision an example of a microeconomic or a macroeconomic issue?Apple’s decision is a microeconomic decision because it affects a single company and a single market.2. Which of the following pairs does not match:a. Labour and wages?Labour earns wages, so this pair matches.b. Land and rent?Land earns rent, so this pair matches.c. Entrepreneurship and profit?Entrepreneurship earns profit, so this pair matches.d. Capital and profit?Capital earns interest, so this pair does not match.3. Explain how the following news headlines concern self-interest and the social interest:a. Roots Expands in ChinaRoots’ expansion is a decision made by Roots to increase its profitability. The decision is directly in Roots’ self-interest. The question of whether this choice is also in the social interest is one that is studied inmicroeconomics.b. McDonald’s Moves into SaladsMcDonald’s decision to serve salads is a decision made by McDonald’s to further McDonald’s interest.Thus the decision is directly in McDonald’s self-interest. The question of whether this choice also furthersthe social interest is one that is studied in microeconomics.c. Food Must Be Labelled with Nutrition InformationThe decision to require that food must be labelled with nutrition information is made in the socialinterest. This decision is not made by any one single firm, so it does not (necessarily) reflect anyone’s self-interest.4. The night before a test, you decide to go to the movies instead of staying home and workingyour MyEconLab Study Plan. You get 50 percent on your test compared with the 70 percent that you normally score.a. Did you face a tradeoff?Yes, you faced a tradeoff. The tradeoff was between a higher test score and an evening with your friends atthe movies.b. What was the opportunity cost of your evening at the movies?The opportunity cost of going to the movies is the fall in your grade. That is the 20 points forgone fromchoosing to see the movie rather than study.W H A T I S E C O N O M I C S?55. Which of the following statements is positive, which is normative, and which can be tested?a. The government should increase production of biofuels.The statement is normative and cannot be tested.b. China is Australia’s largest trading partner.The statement is positive and can be tested.c. If the price of antiretroviral drugs increases, HIV/AIDS sufferers will decrease theirconsumption of the drugs.The statement is positive and can be tested.6. As London prepares to host the 2012 Olympic Games, concern about the cost ofthe event is increasing. The regeneration of East London is set to add extra £1.5 billion to taxpayers’ bill.The Times, London, 6 July 2006 Is the cost of regenerating East London an opportunity cost of hosting the 2012 OlympicGames? Explain why or why not.The regeneration of East London would be an opportunity cost of hosting the 2012 Olympics if EastLondon would not have been regenerated otherwise. However, if there were already plans underway toregenerate East London, then the cost is not an opportunity cost of hosting the Olympics because the costwould have been paid even if London did not host the Olympics.7. Before starring as Tony Stark in Iron Man, Robert Downey Jr. had played in 45 movies thathad average first-weekend box office revenues of a bit less than $5 million. Iron Man grossed $102 million on its opening weekend.a. How do you expect the success of Iron Man to influence the opportunity cost of hiringRobert Downey Jr.?The salary that must be paid to Robert Downey Jr. to appear in future movies increased because some ofthe success of Iron Man was attributed to Mr. Downey. As a result, the opportunity cost to movieproducers of hiring Mr. Downey increased.b. How have the incentives for a movie producer to hire Robert Downey Jr. changed?There are two effects on the incentives of producers to hire Mr. Downey. First, because the opportunitycost of hiring Mr. Downey increased, the incentive to hire him decreased. However because part of thesuccess of Iron Man was attributed to Mr. Downey’s acting in the title role, producers expect that hisacting will lead to increased success for future movies. This belief increases the marginal benefit andproducers’ incentives of hiring Mr. Downey.8. How would you classify a movie star as a factor of production?As a factor of production, a movie star is labour.9. How does the creation of a successful movie influence what, how, and for whom goods andservices are produced?The “what” question is affected in two ways. First, one good or service that is produced is the successfulmovie. Second, spinoffs and/or similar films may be created in the future. The “how” question is affectedto the extent that movies use different production methods. Some movies, for instance, have a lot ofspecial effects while other movies have few or none. The “for whom” question is influenced because thosepeople who receive higher incomes as the result of the blockbuster movie have higher incomes and so moregoods and services are produced for them.6C H A P T E R110. How does the creation of a successful movie illustrate self-interested choices that are also in thesocial interest?The creation of a successful movie increases the income of the people involved with the movie. Hencethese people’s choices are driven largely by self-interest. However the creation of a successful movie alsoincreases the quantity of widely enjoyed entertainment. The amount of entertainment available in theeconomy increases which benefits society. So the choices the people made in their self-interest alsoreflected choices made in the social interest. This assumes, of course, that the movie has no negative effectson the community such as the promotion of violence, crime, or any other form of abuse of other persons,as well as the image that smoking or dangerous driving are ‘cool’.11. Look at today’s The Australian.a. What is the top economic news story? With which of the big questions does it deal? (It mustdeal with at least one of them and might deal with more than one.)In the middle of 2009, the top economic news stories relate to the budgets of the Australian and stategovernments: what they contain, who they will affect, and how they will change the tax burden onhouseholds and firms, and how they will adversely affect governments’ budget deficits and credit ratings.b. What tradeoffs do the news items discuss or imply?The Australian government proposes to raise the formal retirement age gradually from 65 years to 67years, at which age persons can access the Age Pension and their Superannuation benefits. The tradeoff isthe benefits of a budgetary saving and a lower burden on working taxpayers, against the cost of forcingpeople in unpleasant jobs to work two years longer.c. Write a brief summary of the news item using the economic vocabulary that you have learnedin this chapter and as many as possible of the key terms listed on p. 15.The stories discuss the increase its expenditure on infrastructure (capital), which will create jobs andincrease employment of labour, thus raising human capital by promoting work experience. This is amacroeconomic policy. The increase in the Age Pension will increase income equality. In responding tothe budget, the Opposition parties proposed raising more tax revenue, and raising the opportunity cost ofunhealthy habits, from higher taxes on alcohol and tobacco, arguing that this would reduce the burden onthe health care system. On the other hand, the Australian government proposes to save public expenditureby withdrawing the subsidy provided to high income families of access to private health insurance. TheOpposition argues that this rise in the opportunity cost of health insurance will reduce membership andincrease the burden on the public health system.12. Use the link in MyEconLab (Textbook Resources, Chapter 1) to visit Resources for Economistson the Internet. This Web site is a good place from which to search for economic information on the Internet. Click on “Blogs, Commentaries, and Podcasts.” and then click on the Becker-Posner Blog.a. Read the latest blog by these two outstanding economists.b. As you read this blog, think about what it is saying about the “what,” “how,” and “forwhom” questions.c. As you read this blog, think about what it is saying about self-interest and the social interest.。
大学经济学英语教材
大学经济学英语教材Economics for University StudentsChapter 1: Introduction to Economics1.1 What is Economics?Economics is the study of how individuals and societies make choices to allocate scarce resources to fulfill unlimited wants and needs.1.2 The Economic ProblemThe economic problem refers to the scarcity of resources and the need to make choices in order to satisfy the unlimited wants and needs of individuals and societies.1.3 Key Economic Conceptsa) Opportunity Cost: The cost of choosing one option over another, measured by the value of the next best alternative foregone.b) Supply and Demand: The interaction between buyers and sellers that determines the price and quantity of goods and services in a market.c) Production Possibility Frontier: A graphical representation of the maximum combination of goods and services that can be produced by an economy given its scarce resources.d) Comparative Advantage: The ability of a country, individual, or firm to produce a good or service at a lower opportunity cost than others.Chapter 2: Microeconomics2.1 The Basics of MicroeconomicsMicroeconomics studies the behavior of individual economic units, such as consumers, producers, and markets.2.2 Consumer Behaviora) Utility Theory: The theory that individuals maximize their satisfaction or utility when allocating their limited resources.b) Demand and Elasticity: The relationship between price and the quantity demanded, and the responsiveness of quantity demanded to price changes.2.3 Producer Behaviora) Production and Cost Analysis: The relationship between inputs, outputs, and costs in the production process.b) Supply and Elasticity: The relationship between price and the quantity supplied, and the responsiveness of quantity supplied to price changes.2.4 Market Structuresa) Perfect Competition: A market structure with many buyers and sellers, homogeneous products, and free entry and exit.b) Monopoly: A market structure with a single seller and significant barriers to entry.c) Oligopoly: A market structure with a few large firms dominating the market.d) Monopolistic Competition: A market structure with many sellers and differentiated products.Chapter 3: Macroeconomics3.1 Introduction to MacroeconomicsMacroeconomics studies the behavior of the economy as a whole, including variables such as inflation, unemployment, and economic growth.3.2 Measurement of Macroeconomic Variablesa) Gross Domestic Product (GDP): The total value of goods and services produced within an economy over a specific period of time.b) Inflation Rate: The rate at which the general level of prices for goods and services is rising.c) Unemployment Rate: The percentage of the labor force that is unemployed and actively seeking employment.3.3 Aggregate Demand and Aggregate Supplya) Aggregate Demand: The total demand for goods and services in an economy at a given price level.b) Aggregate Supply: The total supply of goods and services in an economy at a given price level.3.4 Macroeconomic Policiesa) Fiscal Policy: The use of government spending and taxation to influence the economy.b) Monetary Policy: The use of interest rates and money supply to control inflation and stabilize the economy.c) International Trade and Exchange Rates: The impact of international trade and exchange rates on a country's economy.Conclusion:The study of economics provides students with a framework for understanding and analyzing various economic phenomena. By mastering the concepts and principles of economics, students will be equipped with valuable knowledge that can be applied to real-world situations and decision-making processes. Understanding the theories and processes outlined in this textbook will enable students to make informed economic decisions in their personal and professional lives.。
What Is Economics
2010级经济学专业英语徐丽燕 2010150120市场（供应和需求）市场：市场是一些买者与卖者之间的的一种特殊的商品或服务。
竞争市场：一个竞争激烈的市场是指有许多买家和许多卖家,他们对市场价格不造成影响。
竞争：完美与否在本章中，我们假定市场是完全竞争。
完全竞争市场的定义有两个主要特点：（1）所有的商品价格都同；和(2)买家和卖家很多,因此没有单一的买方或卖方可以决定市场价格。
由于买家和卖家在完全竞争市场中必须接受市场决定的价格,因此他们成为价格接受者。
有一些市场完全竞争的假设完全适用。
例如小麦市场,有成千上万的农民出售小麦和数以百万计的消费者使用小麦和小麦产品，因为没有一个买家或卖家可以影响小麦的价格,每个价格是既定的。
然而并不是所有的商品和服务都能在完全竞争市场被出售。
当一些市场只有一个卖方并且卖方设定了这个价格，这样一个卖方称为垄断。
例如，您当地的有线电视公司，可能是垄断。
你的城镇的居民可能只有一个有线电视公司来购买这种服务。
一些市场介于完全竞争和垄断两个极端之间。
这样一个市场，称为寡头垄断。
有一些卖家并不总是积极竞争。
航空公司航线就是一个例子。
如果两个城市之间的航线服务的只有两个或三个运营商，运营商可能会避免激烈竞争，以保持价格高。
另一种类型的市场是垄断竞争，它包含了很多卖家，提供一个稍微不同的产品。
因为这些产品并不完全相同,每个卖方有能力设定自己的产品的价格。
一个例子是软件行业。
许多文字处理程序为用户互相竞争,但每一个程序都是不同的,都有自己的价格。
尽管我们发现，在世界的市场类型的多样性，我们就开始研究完全竞争。
完全竞争市场是最简单的分析。
此外，由于存在一定程度的竞争是在大多数市场中，很多我们学习的经验教训，研究完全竞争条件下的供应和需求，以及适用于更复杂的市场。
什么确定个人需求的数量？考虑您自己对冰淇淋的需求。
你如何决定每个月购买多少冰激凌和哪些因素会影响你的决定？下面是一些您可能会给的答案。
Micro economic WHAT IS ECONOMICS
© 2012 Pearson Addison-Wesley
Two Big Economic Questions
© 2012 Pearson Addison-Wesley
Two Big Economic Questions
Two big questions summarize the scope of economics:
▪ How do choices end up determining what, how, and for
▪ Land ▪ Labor ▪ Capital ▪ Entrepreneurship
© 2012 Pearson Addison-Wesley
Two Big Economic Questions
The “gifts of nature” that we use to produce goods and services are land.
▪Efficiency ▪Equity
© 2012 Pearson Addison-Wesley
Two Big Economic Questions
Efficiency is achieved when the available resources are used to produce goods and services: 1.At the lowest possible price and 2.In quantities that give the greatest possible benefit. Equity is fairness, but economists have a variety of views about what is fair. The Big Question Can choices made in self-interest promote the social interest?
01 What Is Economics
What Is Economics
Objectives
Objectives
A.
To learn the fundamental knowledge about economics and its importance in our daily life. To know about the terms of microeconomics and macroeconomics.
Introduction
A society faces many decisions. It must decide who will eat shark’s fin and who will eat potatoes. It must decide who will drive a Mercedes-Benz and who will take the bus. Economics will tell you why.
Background and terminology
Politicground and terminology
English School of Classical Political Economy
英国古典政治经济学派
Language points
Language points
参考译文
不管你懂不懂经济学，学不学经济学，日 常生活中你都在不知不觉地实践着经济学的某 些理论。学习经济学有助于做出更好的个人决 策，更精明地参与经济生活。至少，当失业的 时候，你知道为什么失业。
Main points of the text
Main points of the text
1. Economics is everybody’s business. 2. What is economics? 3. Origin of economics. 4. What is microeconomics and macroeconomics.
what is economics
What Is Economics?There is no single adequate definition of what economics actually is, and the old joke that “economics is what economists do” is hardly helpful.A famous economist of the past, Alfred Marshall (1842—1924), said:Economics is the study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of well-being.Economics has also been defined as the study of decision-making; decisions which involve choosing between alternatives in the related activities of earning, spending, producing and consuming, all with the object of achieving material well-being.In short , economics is, like sociology, law and politics, a study of one aspect of human behavior. It is important and relevant to all of us because it is concerned with such everyday activities as buying things, getting a job, using a bank and paying tax. Economics is concerned with people's wants, in particular their material wants, and how they can be satisfied.Economics is often thought of as a science. However, it is very inexact science because it is a social science, and is affected by many influences that lead to incessant change. Human behavior cannot be examined with the same precision with which a natural scientist can examine laboratory specimens. The social sciences, which includeeconnomics, psychology, sociology and political behavior, can never be exact sciences since human behavior is extremely difficult to test or measure. Much economic behavior is based on what is known as a value judgment ,which means it is based on the personal values of individuals and so cannot be verified in a factual way. Economics is a living subject, which is constantly developing and it affects us all.To understand the society in which we live, we must be informed about what is going on in our society and what issues are. As consumers we are interested in the goods and services which we buy and how much they cost us,and we are interested in the incomes we can earn. We spend a great deal of time thinking about the money we earn and the money we need. Workers are concerned with the availability of jobs, wages and working conditions. Business people are interested in the sale of their goods and the costs involved in the production of them. Everyone is affected by depression, inflation, unemployment and government policies.A knowledge of economics will allow us to analyze and assess the values of policies and decisions made by politicians. And it will help us to become more aware of the current and future problems of our society and therefore better able to cope with them. We are all consumers and most of us read the newspapers, so it is up to us to understand what is going on.Even our own personal decisions are often affected by thestate of the economy, so we could make better choices if we understood the way the economy operates.An economy is often affected by factors such as the use of technology, the actions of the government, industrial relations, and overseas trade. All of these influcences result in constant change. Prices seem to rise constantly. Some jobs are no longer available, while new types of jobs appear. Changes in employment and prices affect almost everyone.Employment and the types of jobs available are all part of the economic pattern. Some jobs may involve extreme specialization, such as making just a small part of something; others demand professional skills. All of these activities enable us to have a variety of goods and services. But while economic activities satisfy our wants, there are also economic problerms to be faced. The economic system is made up of human beings and so human behavior is crucial to the system. The principles and motives from which people act are not necessarily economic in origin, and are often based on non-economic values. Differing values and social forces have led to countries developing different economic systems, but all countries face the same economic problems—such as whether they are producing the right things and by the best methods, how wants are to be satisfied, and whose wants are to be satisfied.Economics is a study of living and working in society; but not all societies behave in the same way.In order to produce the things people want there must be some kind of organization. An economic system is made up of the collection of relationships, customs, institutions, laws and arrangements that are combined to satisfy the economic wants of the community—to determine what and how production takes place, and who receives the output. Naturally it depends on the participation of the members of the community. An economic system is not just an abstraction; it is the real world.In one sense the economic system of a society does grow or, rather, develop, because the type of system a country has depended on its historical background and its political forces. A nation’s history and political tradition are important in shaping its economic goals and methods, and its basic economic institutions. The values and beliefs held by the members of the society are also influential.The job of an economic system is to form a framework of orgnization which enables choices and decisions to be made on how to satisfy the wants of the community. The way it does this depends largely on the type of society. In the USA there is still a belief in the value of free enterprise and the ability of individuals to succeed if they work hard enough. In some countries, such as England and possibly Sweden, there is a belief in the welfare state, that it is up to the government to look after the citizens from the cradle to the grave, although there have been criticisms of thisapproach because of cost. Countries like Australia seem to represent a mixture of both these attitudes.National characteristics and belief systems have led to many differences between economic systems. It cannot be said that just because two countries have the same political governments, they will run their economics in the same way. It is not easy to compare one economy with another and say that one is better or worse—there is too much diversity, and adequate measurement is impossible. One can, however, say that the standard of living is better in one economy than in another. Or one can compare such things as the level of unemplyment or the stability of prices. But these single measures cannot show a true or complete picture of an economy.。
第一讲 什么是经济学
“许多实行家自以为不受任何学理的影响，却往往当了某 个已故经济学的奴隶”
“The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed, the world is ruled by little else. Practical men, who believe themselves to be quite exempt from intellectual influences, are usually the slaves of some defunct economists.”
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经济学的三类问题
1. 人们如何作出决策 How People Make Decisions
2. 人们如何相互作用 How People Interact
3. 整体经济如何运行 How the Economy as a Whole Works
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经济学的十个原理
人们如何作出决策
How People Make Decisions
• 训练经济学直觉 To gain economic intuition
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经济学三个层次的特点
经济学原理不用公式而用图表（“curveshifting economics”）
入门课 三个主要目的
中级经济学用一些数学和统计
较为严格的数学推理 较为系统的经验实证分析
高级经济学用很多数学（“Greek-letter economics”）
alevel economics 基础 讲义经济学高等教育教育专区
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5 Macroeconomic Issues
– aggregate demand, aggregate supply – economic growth – unemployment – inflation – balance of trade – exchange rates
– the social implications of choice society i.e. taking
into consideration how a certain choice may have an indirect cost on
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Resources
•Resources are the basic categories
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4 Two branches of economics
• Microeconomics is the branch of economics that studies decision-making by a single individual, household, firm, industry or level of government.
Short-Run v Long Run
• Short-Run:
A time period in which at least one factor of production is fixed (i.e. cannot increase its
amount)
it is not defined in terms of number of days/weeks)
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What is economics?There is no single adequate definition of what economics actually is, and the old joke that “economics is what economists do” is hardly helpful. A famous economist of the past, Alfred Marshall (1842-1924), said:Economics is the study of mankind in the ordinary business oflife; it examines that part of individual and social action whichis most closely connected with the attainment and with the useof the material requisites of well-being.Economics has also been defined as the study of decision-making; decisions which involve choosing between alternatives in the related activities of earning, spending, producing and consuming, all with the object of achieving material well-being.In short, economics is, like sociology, law and politics, a study on aspect of human behavior. It is important and relevant to all of us because it is concerned with such everyday activities as buying things, getting a job, using a bank and paying tax. Economics is concerns with people’s wants, in particular the ir material wants, and how they can be satisfied.Economics is often thought of as a science. However, it is a very inexact science because it is a social science, and is affected by themany influences that lead to incessant change. Human behavior cannot be examined with the same precision with which a natural scientist can examine laboratory specimens. The social sciences, which include economics, psychology, sociology, and political behavior, can never be exact sciences since human behavior is extremely difficult to test or measure. Much economic behavior is based on what is known as a value judgment, which means it is based on the personal values of individuals and so cannot be verified in a factual way. Economics is a living subject, which is constantly developing and it affects us all.To understand the society in which we live, we must be informed about what is going on in our society and what the issues are. As consumers we are interested in the goods and services which we buy and how much they cost us, and we are interested in the incomes we can earn. We spend a great deal of time thinking about the money we earn and the money we need. Workers are concerned with the availability of jobs, wages and working conditions. Business peoples are interested in the sale of their goods and the costs involved in the production of them. Everyone is affected by depression, inflation, unemployment and government policies.A knowledge of economics will allow us to analyze and assess the values of policies and decisions made by politicians, and it will help us to become more aware of the current and future problems of our societyand therefore better able to cope with them. We are all consumers and most of us read the newspapers, so it is up to us to understand what is going on. Even our own personal decisions are often affected by the state of the economy, so we could make better choices if we understood the way the economy operates. An economy is often affected by factors such as the use of technology, the actions of the government, industrial relations, and overseas trade. All of these influences result in constant change. Prices seem to rise constantly. Some jobs are no longer available, while new types of jobs appear. Changes in employment and prices affect almost everyone.Employment and the types of jobs available are all part of the economic pattern. Some jobs may involve extreme specialization, such as making just a small part of something; others demand professional skills. All of these activities enable us to have a variety of goods and services, but while economic activities satisfy our wants, there are also economic problems to be faced. The economic system is made up of human beings and so human behavior is crucial to the system. The principles and motives form which people act are not necessarily economic in origin, and are often based on non-economic values. Differing values and social forces have led to countries developing different economic systems, but all countries face the same economic problems—such as whether they are producing the right things and bythe best methods, how wants are to be satisfied, and whose wants are to be satisfied.Economics is a study of living and working in society; but not all societies behave in the same way.In order to produce the things people want there must be some kind of organization. An economic system is made up of the collection of relationships, customs, institutions, laws and arrangements that are combined to satisfy the economic wants of the community—to determine what and how production takes place, and who receives the output. Naturally it depends on the participation of the members of the community. An economic system is not just an abstraction; it is the real world.In one sense the economic system of a society does grow or, rather, develop, because the type of system a country has depended on its historical background and its political forces. A nation’s history and political tradition are important in shaping its economic goals and methods, and its basic economic institutions. The value and beliefs held by the members of the society are also influential.The job of an economic system is to form a framework of organization which enables choices and decisions to be made on how to satisfy the wants of the community. The way it does this depends largely on the type of society. In the USA there is still a belief in the value of freeenterprise and the ability of individuals to succeed if they work hard enough. In some countries, such as England and possibly Sweden, there is a belief in the welfare state, that it is up to the government to look after the citizens from the cradle to the grave, although there have been criticisms of this approach because of cost. Countries like Australia seem to represent mixture of both these attitudes.National characteristics and belief systems have led to many differences between economic systems. It cannot by say that just because two countries have the same political governments, they will run their economics in the same way. It is not easy to compare one economy with another and say that one is better or worse - there is too much diversity, and adequate measurement is impossible. One can, however, say that the standard of living is better in one economy than in another. Or one can compare such things as the level of unemployment or the stability of prices. But these single measures cannot show a true or complete picture of an econom y.Sunk CostsAlthough an opportunity cost is often hidden,it should be taken into account when making economic decisions. Just the opposite is true of a sunk cost: an expenditure that has been made and cannot be recovered.A sunk cost is usually visible, but after it has been incurred, it should always be ignored when making future economic decisions.Because a sunk cost cannot be recovered, it should not influence the firm's decisions. For example, consider the purchase of specialized equipment designed for a plant. Suppose the equipment can be used to do only what is was originally designed for and cannot be converted for alternative use. The expenditure on this equipment is a sunk cost. Because it has no alternative use, its opportunity cost is zero. Thus it should not be included as part of the firm's costs. The decision to buy this equipment may have been good or bad. It doesn't matter. It's water under the bridge and shouldn't affect current decisions.What if, instead, the equipment could be put to other use, or could be sold or rented to another firm? In that case its use would involve an economic cost - namely, the opportunity cost of using it rather than selling or renting it to another firm.Now consider a prospective sunk cost. Suppose, for example, that the firm has not yet bought the specialized equipment but is merely considering whether to do so. A prospective sunk cost is an investment. Here the firm must decide whether that investment in specialized equipment is economical - i.e., whether it will lead to a flow of revenues large enough to justify its cost.。