Welch Welch Economics Theory and Practice韦尔奇韦尔奇amp经济学理论与实践.pptVIP

Chapter 1 – Introduction to Economics ECONOMICS THEORY AND PRACTICE Seventh Edition Copyright ? 2004 John Wiley Sons, Inc. All rights reserved. Patrick J. Welch St. Louis University Gerry F. Welch St. Louis Community College at Meramec PowerPoint Presentation by: Dr. Ray Everett Pima Community College Introduction to Economics Contents Economics Scarcity Efficiency Equity Factors of Production Economic Theory Policy Tools of the Economist Scarcity, Model Building, Graphs Macroeconomics Microeconomics Graphing (Chapter 1 Appendix) Introduction to Economics Chapter Objectives To define economics and introduce the scarcity problem, which underlies economics. To understand the relationship between scarcity and choice. To define opportunity cost. To explore how efficiency and equity are related to the problem of scarcity. To identify four factors of production and the income return to each type of factor. To differentiate between economic theory and economy policy. To introduce the tools economists use to express theories and policies. To use the production possibilities model to illustrate and explain the basic problem of scarcity. To differentiate between macroeconomics and microeconomics. To explain how to construct a graph and interpret the illustrated relationship. Economics Study of how scarce, or limited, resources are used to satisfy people’s unlimited material wants and needs. Scarcity Inability to provide enough goods and/or services to satisfy the wants and needs of all people. Opportunity Cost Cost of a purchase or a decision measured in terms of a foregone alternative. Economics Scarcity FIGURE 1-1 Scarcity, Choice, and Influences on Decision Makers 1-1 Efficiency Equity Efficiency Producing the largest attainable output of a desired quality from a given set of resources; occurs when goods and services are produced at the lowest possible cost. If all goods and services were produced efficiently, society would experience the greatest possible les