微观经济学英文版.ppt

MicroeconomicsYan YAN. Chapter 1: The Fundamentals of Economics（A. Introduction）You want to buy a clock in the grocery near the campus. The price is $20. A friend tells you that it is $10 in the supermarket in downtown. Would you buy the clock in the supermarket？You want to buy a computer which is $2510. while it is $2500 in the supermarket in downtown. Wherever you buy the computer, it would return to the producer if there is any problem. Where would you buy it？. Chapter 1: The Fundamentals of Economics（A. Introduction）1.1 Scarcity and EfficiencyWhat is economics ?Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.What is efficiency ?Efficiency denotes the most effective use of a society’s resource in satisfying people’s wants and needs. In economics, we say that an economy is producing efficiently when it cannot make anyone economically better off without making someone else worse off.. Chapter 1: The Fundamentals of Economics（A. Introduction）1.2 Microeconomics and MacroeconomicsWhat is Microeconomics ?It is concerned with the behavior of individual entities such as markets, firms and households.Founder: Adam smith, <The Wealth of Nations>What is Macroeconomics ?It is concerned with the overall performance of the economy.Funder: John Maynard, <General Theory of Employment>. Chapter 1: The Fundamentals of Economics（A. Introduction）1.3 The logic of economicsThe post hoc fallacy It involves the inference of causality. It occurs when we assume that, because one event occurs another event, the first event caused the second event. 广东省的人口死亡率为5.4‰，是全国最低的省份，由此我们就推定生活在广东一定有利于身体健康。Failure to hold other things constantIt refers to the failure to hold other things constant when thinking about an issue. 税率对收入的影响Fallacy of compositionWhen you assume that what is true for the part is also true for the whole, you are committing the fallacy of composition.一个农场主丰收 VS. 所有农场主都丰收. Chapter 1: The Funda