1、microeconomicsmicroeconomics1Chapter OnePreliminaries（引论）（引论）2IntroductionlWhat is microeconomics?lWhat is the origin and development of microeconomics?lHow to handle microeconomics?3Quarter one What is microeconomicslMicroeconomics and Marxist Economics lDefinition and theory of Microeconomics lMai
2、n content of MicroeconomicslThe problem settled by Microeconomics41. Microeconomics and Marxist Economics lMarxist economics is the study of the motion law of scientific production relations（生产关系运动规律）, it critically absorbs classical plutonomy（政治经济学） scientific composition, creates surplus value（剩余价
3、值）, reveals the secret that the capitalists exploit the workers.lWestern economics is the western scholars summary about market economic operation rules, and proposes the economic policy.52. Definition and theory of MicroeconomicslThe starting point of economics searchinglThe definition of Microecon
4、omicslPeople how to make decisionlWhy need to bargainlWhy need to build market economics62.1 the starting point of economicslResourcelscarcityldecisionFree access objectsEconomic objectsscarcity（紧缺）（紧缺）Limited resource different usesUnlimited desire prioritiesdecisionwhathowwho7Fundamental model_mea
5、ns that the resource have been used fully on the existing technical level._means the resource havent been used fully or resource idle.8Production possibilities curvelPPC is a graph that shows the combinations of output that the economy can possibly produce given the available factors of production a
6、nd the available production technology.lThe point on the PPC means that the resource have been used fully on the existing technical level.lThe point inside the PPC means the resource havent been used fully or we call it resource idle.lThe advance of technology and larger quantity of resource can mak
7、e PPC move rightward.9Opportunity costlThe opportunity cost that produce one product with certain resource is the quantity of another we give up.lOr, the opportunity cost that use a certain resource is the highest price of abandoning other uses of this resource102.2 the definition of microeconomicsl
8、Economics is a study, learning selection of scarce resources with different uses; The goal is effective allocation of scarce resources to produce goods and services, and in the present or future, let them reasonable allocated to social members or group for consumption.112.3 people how to make decisi
9、on lThere is no mystery to what an “economy” is. Whether we are talking about the economy of Los Angeles, of the United States, or of the whole world, an economy is just a group of people interacting with one another as they go about their lives. Because the behavior of an economy reflects the behav
10、ior of the individuals who make up the economy, we start our study of economics with four principles of individual decision making.122.3 people how to make decisionlPRINCIPLE #1: PEOPLE FACE TRADEOFFS（权衡）The first lesson about making decisions is summarized in the adage: “There is no such thing as a
11、 free lunch.” To get one thing that we like, we usually have to give up another thing that we like. Making decisions requires trading off one goalagainst another.e.g. parents are deciding how to spend their family income. They can buy food, clothing, or a family vacation. Or they can save some of th
12、e family income for retirement or the childrens college education. When they choose to spend an extra dollar on one of these goods, they have one less dollar to spend on someother good.132.3 people how to make decisionlPRINCIPLE #2: THE COST OF SOMETHING IS WHAT YOU GIVE UP TO GET IT Because people
13、face tradeoffs, making decisions requires comparing the costs and benefits of alternative courses of action. In many cases, however, the cost of some action is not as obvious as it might first appear. e.g. When making any decision, such as whether to attend college, decision makers should be aware o
14、f the opportunity costs that accompany each possible action. In fact, they usually are. College-age athletes who can earn millions if they drop out of school and play professional sports are well aware that their opportunity cost of college is very high. It is not surprising that they often decide t
15、hat the benefit is not worth the cost.142.3 people how to make decisionlPRINCIPLE #3: RATIONAL PEOPLE THINK AT THE MARGIN（边际） Decisions in life are rarely black and white but usually involve shades of gray. In many situations, people make the best decisions by thinking at the margin. e.g. As another
16、 example, consider an airline deciding how much to charge passengers who fly standby. Suppose that flying a 200-seat plane across the country costs the airline $100,000. In this case, the average cost of each seat is $500. One might be tempted to conclude that the airline should never sell a ticket
17、for less than $500. In fact, however, the airline can raise its profits by thinking at the margin.152.3 people how to make decision Imagine that a plane is about to take off with ten empty seats, and a standby passenger is waiting at the gate willing to pay $300 for a seat. Should the airline sell i
18、t to him? Of course it should. If the plane has empty seats, the cost of adding one more passenger is minuscule（极小的）. Although the average cost of flying a passenger is $500, the marginal cost is merely the cost of the bag of peanuts and can of soda（微不足道的） that the extra passenger will consume. As l
19、ong as the standby passenger pays more than the marginal cost, selling him a ticket is profitable.162.3 people how to make decisionlPRINCIPLE #4: PEOPLE RESPOND TO INCENTIVES（激励） Because people make decisions by comparing costs and benefits, their behavior may change when the costs or benefits chang
20、e. That is, people respond to incentives. e.g. When the price of an apple rises, for instance, people decide to eat more pears and fewer apples, because the cost of buying an apple is higher. At the same time, apple orchards decide to hire more workers and harvest more apples, because the benefit of selling an apple is also higher. As we will see, the effect of price on the behavior of buyers and sellers in a marketin this case, the market for applesis crucial for understanding how the economy works.17
