经济学原理chapter1英文版.pptVIP

Principles of Economics Third Edition by N. Gregory Mankiw  Chapter 1 Ten Principles of Economics Economy. . . . . . The word economy comes from a Greek word for “one who manages a household.” A household and an economy face many decisions: Who will work? What goods and how many of them should be produced? What resources should be used in production? At what price should the goods be sold? Society and Scarce Resources The management of society’s resources is important because resources are scarce. Scarcity . . . . . . means that society has limited resources and therefore cannot produce all the goods and services people wish to have. Economics Economics is the study of how society manages its scarce resources. Economists study. . . How people make decisions. How people interact with each other. The forces and trends that affect the economy as a whole. Look for the answers to these questions: What are the principles of how people make decisions? What are the principles of how people interact? What are the principles of how the economy as a whole works? Ten Principles of Economics 1. People face tradeoffs. 2. The cost of something is what you give up to get it. 3. Rational people think at the margin. 4. People respond to incentives. Ten Principles of Economics 5. Trade can make everyone better off. 6. Markets are usually a good way to organize economic activity. 7. Governments can sometimes improve economic outcomes. Ten Principles of Economics 8. The standard of living depends on a country’s production. 9. Prices rise when the government prints too much money. 10. Society faces a short-run tradeoff between inflation and unemployment. 1. People face tradeoffs. “There is no such thing as a free lunch!” 1. People face tradeoffs. Guns v. butter Food v. clothing Leisure time v. work Efficiency v. equity 1. People face tradeoffs. Efficiency means society gets the most that it can from its scarce resources. Equity means the benefits of