经济学原理pptChapter 01.ppt

* 23 * 24 * * * 10. Society faces a short-run tradeoff between inflation and unemployment. The Phillips Curve illustrates the tradeoff between inflation and unemployment: òInflation e ?Unemployment It’s a short-run tradeoff! Summary When individuals make decisions, they face tradeoffs. Rational people make decisions by comparing marginal costs and marginal benefits. Summary People can benefit by trading with each other. Markets are usually a good way of coordinating trades. Government can potentially improve market outcomes. Summary A country’s productivity determines its living standards. Society faces a short-run tradeoff between inflation and unemployment. * * * * * * * 7 * 7 * 7 * * * 9 * 10 * 10 * 11 * 12 * 10 * 15 * 16 * 16 * 16 * 17 * 17 * 18 * 17 * 21 * 21 * 22 Harcourt, Inc. items and derived items copyright ? 2001 by Harcourt, Inc. Principles of Economics Second Edition by N. Gregory Mankiw Prepared by Mark P. Karscig, Department of Economics Finance, Central Missouri State University. Ten Principles of Economics Chapter 1 Copyright ? 2001 by Harcourt, Inc.All rights reserved.?? Requests for permission to make copies of any part of thework should be mailed to: Permissions Department, Harcourt College Publishers,6277 Sea Harbor Drive, Orlando, Florida 32887-6777. Economy. . . . . . The word economy comes from a Greek word for “one who manages a household.” A household and an economy face many decisions: Who will work? What goods and how many of them should be produced? What resources should be used in production? At what price should the goods be sold? Society and Scarce Resources: The management of society’s resources is important because resources are scarce. Scarcity . . . . . . means that society has limited resources and therefore cannot produce all the goods and services people wish to have. Economics Economics is the study of how society manages its scarce resources. Economists study. . . How people make decisions. How people intera