[经济学]01Introduction to Economics.pptVIP

Chapter 1 Introduction to Economics Edward Zhu Wuhan University of Technology 2009 Agenda A. Introduction: The Nature of Economic Problem B. The Scope and method of Economic Science C. Society’s Technological Possibilities（The Production-Possibility Frontier） A. The Nature of Economic Problem Desire and Scarcity Choice Needed: The Three Basic Economic Problems: （1）What commodities are produced and in what quantities? （2）How are goods produced? （3）For whom are goods produced? What is economics? Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people. B. The Scope and method of Economics Microeconomics and Macroeconomics Positive Economics versus Normative Economics The Methods of Economics: Induction versus Deduction The Logic of Economics: All the other things are equal （Failure to hold other things constant）; The post hoc fallacy; The fallacy of composition （ Whole versus Part ）; Subjectivity: bird or antelope; Uncertainty in economy. B. The Scope and method of Economics Economic Systems and Economic Policies: Laissez-faire versus Government Interventions; Six Economic Policies: Full employment, price stabilization, economic growth of long run, balance of payments, equalization of income, and optimization of resources distribution. C. Society’s Technological Possibilities Each economy has a stock of limited resources: labor, capital, land, enterprise, and technical knowledge Input and output The Production-Possibility Frontier （ TABLE 1-1; FIGURE 1-1, 1-2, 1-3, 1-4, 1-5 ） Opportunity Costs Productive Efficiency Figure 1-1 The Production Possibilities in a Graph Figure 1-2 The Production-Possibility Frontier Figure 1-3 Economic Growth Shifts the PPF Outward Figure 1-4 Economics Must Choose between Public Goods and Private Goods Figure 1-5 Investment for Future Consumption Requires Sacrificing Current Consumption Summary 1. What is ec