中级微观经济学——理论与应用（第10版）（经济学经典教材·双语教学用书）尼克尔森等著0324319681_67663上课用课件.ppt

Intermediate Microeconomics and Its Application10th EditionbyWalter Nicholson, Amherst CollegeChristopher Snyder, Dartmouth College PowerPoint Slide Presentation by Mark Karscig Central Missouri State University Chapter 1 Economic Models Economics Economics How societies allocate scarce resources among alternative uses—three questions: What to produce How much to produce Who gets the physical and monetary proceeds MICROECONOMICS How individuals and firms make economic choices among scarce resources How these choices create markets Economic Models Simple theoretical descriptions--capture essentials of how economies work Real economies too complex to describe in useful detail Models are unrealistic, but useful Maps unrealistic--do not show every house, parking lot, etc. Despite lack of “realism,” maps show overall picture; help us get where we want to go; form mental image Production Possibility Frontier Graph showing all possible combinations of goods produced with fixed resources Figure 1-1 shows production possibility frontier--food and clothing produced per week At point A, society can produce 10 units of food and 3 units of clothing FIGURE 1-1: Production Possibility Frontier Production Possibility Frontier At B, society can choose to produce 4 lbs. of food and 12 articles of clothing. Without more resources, points outside production possibilities frontier are unattainable Resources are scarce; we must choose among what we have to work with. Production Possibility Frontier Simple model illustrates five principles common to microeconomic situations: Scarce Resources Scarcity expressed as Opportunity costs Rising Opportunity Costs Importance of Incentives Inefficiency costs real resources Scarcity And Opportunity Costs Opportunity cost: Cost of a good as measured by goods or services that could have been produced using those scarce resources Opportunity Cost Example Figure 1-1: if economy produces one more article of clothing beyond 10 at point