Chap02Thinking Like an Economist(微观经济学(曼昆)(英文版)概要1.pptVIP

Thinking Like an Economist Chapter 2 Every field of study has its own terminology Every field of study has its own terminology Economics trains you to. . . . Think in terms of alternatives. Evaluate the cost of individual and social choices. Examine and understand how certain events and issues are related. The Economist as a Scientist The economic way of thinking . . . Involves thinking analytically and objectively. Makes use of the scientific method. The Scientific Method Uses abstract models to help explain how a complex, real world operates. Develops theories, collects, and analyzes data to prove the theories. The Role of Assumptions Economists make assumptions in order to make the world easier to understand. The art in scientific thinking is deciding which assumptions to make. Economists use different assumptions to answer different questions. The Economic Way of Thinking Includes developing abstract models from theories and the analysis of the models. Uses two approaches: Economic Models Economists use models to simplify reality in order to improve our understanding of the world Two of the most basic economic models include: The Circular-Flow Model The circular-flow model is a simple way to visually show the economic transactions that occur between households and firms in the economy. The Circular-Flow Diagram The Circular-Flow Diagram The Circular-Flow Diagram The Circular-Flow Diagram Factors of Production Inputs used to produce goods and services Land, labor, and capital The Production Possibilities Frontier The production possibilities frontier is a graph showing the various combinations of output that the economy can possibly produce given the available factors of production and technology. The Production Possibilities Frontier The Production Possibilities Frontier Concepts Illustrated by the Production Possibilities Frontier Efficiency Tradeoffs Opportunity Cost Economic Growth The Production Possibilities Frontier Microeconomics and Macroeconom