经济学原理·萨缪尔森--中山大学岭南学院CH2.ppt

CH. 2Markets and Government in a Modern Economy Change of Economic System Medieval: Aristocracy and Town Guilds Two Centuries ago: Less Control 19th Century: Laissez-faire in most of Europe and North America. End of 19th Century: Welfare State After World War II: Guiding of Government. Around 1980: Reduce Taxes Deregulate Government’s Control What is a market? Market ：Price serves as signals to producers and consumers. Market Equilibrium of Supply and Demand How markets solve the three economic problems? What—determined by the dollar votes of consumers How —determined by the competition among different producers For whom—determined by the supply and demand in the markets for factors of production Monarchs of the Marketplace Consumers and Technology The Market System Relies on Supply and Demand to Solve the Trio of Economic Problems B. Trade, Money and Capital Trade Specialization Division of Labor C. The Economic Role of Government Three main economic functions Increasing efficiency Perfect Competition Imperfect Competition Externalities Public Goods Are lighthouses Public Goods？ Promote equity Progressive Taxation (income and inheritance taxes) Transfer Payments Fostering macroeconomics stability and growth Fiscal policies Monetary policies * *