1、Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.1A Lecture Presentation in PowerPoint to AccompanyPrinciples of EconomicsSecond EditionbyN. Gregory MankiwPrepared by Mark P. Karscig, Department of Economics & Finance, Central Missouri State University.2Ten Principles of Econom
2、icsChapter 1Copyright 2001 by Harcourt, Inc.All rights reserved. Requests for permission to make copies of any part of thework should be mailed to:Permissions Department, Harcourt College Publishers,6277 Sea Harbor Drive, Orlando, Florida 32887-6777.Harcourt, Inc. items and derived items copyright 2
3、001 by Harcourt, Inc.3Economy. . . . . . The word economy comes from a Greek word for “one who manages a household.”Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.4A household and an economy face many decisions:uWho will work?uWhat goods and how many of them should be produce
4、d?uWhat resources should be used in production?uAt what price should the goods be sold?Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.5Society and Scarce Resources:The management of societys resources is important because resources are scarce.Harcourt, Inc. items and derived
5、items copyright 2001 by Harcourt, Inc.6Scarcity . . . . . means that society has limited resources and therefore cannot produce all the goods and services people wish to have.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.7EconomicsEconomics is the study of how society manage
6、s its scarce resources. Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.8Economists study. . . uHow people make decisions.uHow people interact with each other.uThe forces and trends that affect the economy as a whole.Harcourt, Inc. items and derived items copyright 2001 by Har
7、court, Inc.9Ten Principles of Economics1. 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.How People Make DecisionsHarcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.10Ten Principl
8、es of Economics5. Trade can make everyone better off.6. Markets are usually a good way to organize economic activity.7. Governments can sometimes improve economic outcomes.How People InteractHarcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.11Ten Principles of Economics8. The st
9、andard of living depends on a countrys production.9. Prices rise when the government prints too much money.10. Society faces a short-run tradeoff between inflation and unemployment.How the Economy as a Whole WorksHarcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.121. People face
10、 tradeoffs.“There is no such thing as a free lunch!”Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.131. People face tradeoffs.To get one thing, we usually have to give up another thing.u Guns v. butteru Food v. clothingu Leisure time v. worku Efficiency v. equityMaking decisi
11、ons requires trading off one goal against another.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.141. People face tradeoffs.uEfficiency means society gets the most that it can from its scarce resources.uEquity means the benefits of those resources are distributed fairly among
12、 the members of society.Efficiency v. EquityHarcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.152. The cost of something is what you give up to get it.Decisions require comparing costs and benefits of alternatives.uWhether to go to college or to work?uWhether to study or go out
13、on a date?uWhether to go to class or sleep in?Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.162. The cost of something is what you give up to get it.The opportunity cost of an item is what you give up to obtain that item.Harcourt, Inc. items and derived items copyright 2001
14、by Harcourt, Inc.173. Rational people think at the margin.Marginal changes are small, incremental adjustments to an existing plan of action.People make decisions by comparing costs and benefits at the margin.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.184. People respond t
15、o incentives.uMarginal changes in costs or benefits motivate people to respond.uThe decision to choose one alternative over another occurs when that alternatives marginal benefits exceed its marginal costs!Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.19LA Laker basketball s
16、tar Kobe Bryant chose to skip college and go straight to the NBA from high school when offered a $10 million contract.4. People respond to incentives.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.205. Trade can make everyone better off.uPeople gain from their ability to trad
17、e with one another.uCompetition results in gains from trading.uTrade allows people to specialize in what they do best.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.216. Markets are usually a good way to organize economic activity.uIn a market economy, households decide what
18、to buy and who to work for.uFirms decide who to hire and what to produce. Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.226. Markets are usually a good way to organize economic activity.Adam Smith made the observation that households and firms interacting in markets act as i
19、f guided by an “invisible hand.”Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.236. Markets are usually a good way to organize economic activity.uBecause households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social cost
20、s of their actions.uAs a result, prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.247. Governments can sometimes improve market outcomes.When the market fails (breaks down) go
21、vernment can intervene to promote efficiency and equity.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.257. Governments can sometimes improve market outcomes.Market failure occurs when the market fails to allocate resources efficiently.Harcourt, Inc. items and derived items c
22、opyright 2001 by Harcourt, Inc.267. Governments can sometimes improve market outcomes.Market failure may be caused by an externality, which is the impact of one person or firms actions on the well-being of a bystander.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.277. Govern
23、ments can sometimes improve market outcomes.Market failure may also be caused by market power, which is the ability of a single person or firm to unduly influence market prices. Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.288. The standard of living depends on a countrys p
24、roduction.Standard of living may be measured in different ways:uBy comparing personal incomes.uBy comparing the total market value of a nations production.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.298. The standard of living depends on a countrys production.Almost all va
25、riations in living standards are explained by differences in countries productivities.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.308. The standard of living depends on a countrys production.Productivity is the amount of goods and services produced from each hour of a work
26、ers time.Higher productivity Higher standard of livingHarcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.319. Prices rise when the government prints too much money.Inflation is an increase in the overall level of prices in the economy.uOne cause of inflation is the growth in the
27、quantity of money.uWhen the government creates large quantities of money, the value of the money falls.Harcourt, Inc. items and derived items copyright 2001 by Harcourt, Inc.3210. Society faces a short-run tradeoff between inflation and unemployment.The Phillips Curve illustrates the tradeoff between inflation and unemployment:Inflation UnemploymentIts a short-run tradeoff!33p 经常不断地学习,你就什么都知道。你知道得越多,你就越有力量p Study Constantly, And You Will Know Everything. The More You Know, The More Powerful You Will Be写在最后34感谢聆听不足之处请大家批评指导Please Criticize And Guide The Shortcomings结束语讲师：XXXXXX XX年XX月XX日
