中级微观经济学(江西财大-王秋石).ppt

Economics and Economic Reasoning Chapter 1 Laugher Curve Q. Why did God create economists? A. In order to make weather forecasters look good. What Economics Is Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. What Economics Is One of the key words in the above definition is “coordination.” What Economics Is Three central coordination problems any economic system must solve are: What Economics Is Scarcity ensues because individuals want more than can be produced. What Economics Is The degree of scarcity is constantly changing. What Economics Is Economics is the study of how to get people to do things theyre not wild about doing and not to do things they are wild about doing. What Economics Is The following are the five important things to learn in economics: What Economics Is The following are the five important things to learn in economics: A Guide to Economic Reasoning Economic reasoning is making decisions by comparing costs and benefits. Marginal Costs and Marginal Benefits The relevant costs and benefits that matter are the expected incremental or additional costs incurred and the expected incremental benefits of a decision. Marginal Costs and Marginal Benefits If the marginal costs of doing something exceeds the marginal benefits, don’t do it. Marginal Costs and Marginal Benefits In economists’ jargon, marginal refers to additional or incremental. Marginal Costs and Marginal Benefits Marginal cost – the additional cost to you over and above the costs you have already incurred. Marginal Costs and Marginal Benefits Marginal benefit – the additional benefit above and beyond what you’ve already accrued. Marginal Costs and Marginal Benefits According to the economics decision rule: Economics and Passion Economic reasoning is based on the premise that everything has a cost. Economics and Passion Although economists can be as passionate as the