经济学Chap01.ppt

Economic Systems The mixed market economy Economic reasons for government intervention allocative role: resources distributive role: taxes regulatory role: competition macroeconomic role: Free market economy usually leads to macroeconomic instability. * Answer B * 4 * * * 4 * * Answer D * 4 * * 4 * * * * * * * * Modelling Economic Relationships The production possibility curve what the curve shows microeconomics and the PP curve: choices and opportunity cost increasing opportunity cost macroeconomics and the PP curve: production within the curve shifts in the curve O Growth in full-capacity output Food Clothing Now O Food Clothing Now Growth in full-capacity output 5 years’ time O Food Clothing Growth in full-capacity and actual output Growth in full-capacity output shown by outward shift in in PP curve O Food Clothing Growth in full-capacity and actual output x y Growth in actual output shown by movement from x to y Q Which of the following would shift thePP curve outwards? An increase in the population of working age. A reduction in unemployment. A reduction in VAT. An increase in the general level of prices. A reduction in expenditure on education. Modelling Economic Relationships The circular flow of income firms and households The circular flow of goods and incomes Modelling Economic Relationships The circular flow of income firms and households goods markets real flows: goods and services The circular flow of goods and incomes The circular flow of goods and incomes Goods and services Modelling Economic Relationships The circular flow of income firms and households goods markets real flows: goods and services money flows: consumer expenditure Goods and services The circular flow of goods and incomes Goods and services ￡ Consumer expenditure The circular flow of goods and incomes Modelling Economic Relationships The circular flow of income firms and households goods markets real flows: goods and services money flows: consumer expenditure factor markets Mode