萨缪尔森《经济学》课件.ppt

Chapter 2 The shifting boundary between Markets and Government Every individual endeavors to employ his capital so that its produce may be of greatest value. He generally neither intends to promote public interest, nor knows how much he is promoting it. He intends only his own security, only his own gain. And he is in this led by an invisible hand to promote an end which was no part of his intention. By pursuing his own interest he frequently promotes that of society more effectually than when he really intends to promote it. Adam Smith The Wealth of Nations 1776 The important thing for government is not to do things which individuals are doing already, and to do them a little better or a little worse; but to do those things which at present are not done at all. John Maynard Keynes “The End of Laissez Faire” 1926 A. What is a market? Not chaos, but economic order The true miracle is that this entire system works without coercion or centralized direction by anybody. Not chaos, but economic order Literally millions of businesses and consumers engage in voluntary trade, and their actions and purposes are invisibly coordinated by a system of prices and markets. Not chaos, but economic order Nobody decides how many chickens will be produced, where the trucks will drive, and when the supermarkets will open. The market mechanism A market is a mechanism by which buyers and sellers interact to determine the price and quantity of a good or service. A market economy is an elaborate mechanism for coordinating people, activities, and businesses through a system of prices and markets. In a market economy, no single individual or organization is responsible for production, consumption, distribution, and pricing. In a market system, everything has a price, which is the value of the good in terms of money. a)