1、 参考书：Paul A.Samuelson,William D.Nordhaus Economics,18 Edition The McGraw-Hill Companies,Inc.2005 中国人民邮电出版社Unit 1:Nature and scope of economics Unit 2:Theory of demand Unit 3:Theory of supply Unit 4:Price determination Unit 5:Elasticity of demand Unit 6:Price elasticity of supply Unit 7:Economies of
2、large scale production and existence of small firmsUnit 8:Production cost Unit 9:Perfect Competition Unit 10:Monopoly Unit 11:Monopolistic competitionUnit 12:OligopolyUnit 13:Consumer price index-CPIUnit 14:Central bank-monetary policy Unit 15:InflationUnit 16:UnemploymentUnit 17:Role of government
3、_ fiscal policy Unit 18:National income accountingUnit 19:National income application-standard of livingUnit 20:Keynes theory of income and employmentUnit 21:International tradeUnit 22:Free trade and protection 1.1 What is Economics?1.2 Various Definitions of Economics 1.3 Branches of Economics Micr
4、oeconomics Macroeconomics 1.4 The Basic Economic Problems 1.5 Concept of Opportunity Cost 1.6 Production Possibility Curve(PPC)1.7 Review Questions Everywhere human beings are found to make efforts and earn money and then spend this money to satisfy their wants.Therefore,the activities concerning th
5、e earning and spending of wealth are studied under Economics.(Eco.)Adam Smith Economics is a study of an enquiry into the nature and causes of wealth of nations.J.S.Mills Economics is a study of the practical science of the production and distribution of wealth.L.Robbins Economics is a science which
6、 studies human behaviour as a relationship between end and scarce means which have alternative uses.Richard Lipsey:Modern eco.concerns:-a)The allocation of a societys resources among alternative uses and the distribution of the societys output among individuals and group.b)The ways in which producti
7、on and distribution changes over time.c)The efficient and inefficiencies of economic systems.General Definition Economics is a study of how people allocate their limited resources such as land,labour and capital to provide for their unlimited wants.Microeconomics studies the economic decision making
8、 of firms and individuals in a market setting.The issues that are studied under Microeconomic analysis are:a)How consumers behave.b)How business firms make choices.c)How prices are determined in the markets.d)How taxes and price controls affect consumers and producers.e)How the structure of markets
9、affect economic performance.f)How wages,interest rates,rent and profits are determined.g)How income is distributed among families.Macroeconomics is a study of economy as a whole and it concerns the relationship among aggregate(total)measures.The issues that are studied under macroeconomic analysis a
10、re:a)National Income.b)Nations money supply and money demand.c)The value of money.d)Inflation and its determinants.e)Macroeconomic objectives such as price stability,full employment,Balance of Payments and Economic growth.f)Government policies(e.g.Monetary and Fiscal Policies).g)Public Finance(e.g.G
11、overnment revenue and expenditure).In an economy,people have unlimited desire for goods and services(g&s),i.e.unlimited wants,but the resources in the world are limited and so we cannot satisfy all our wants and are forced to choose as to which goods to produce.Therefore,scarcity and choice or limit
12、ed resources and unlimited wants sum up the basic economic problem.Choice is determined by:i.Scale of preference ii.Opportunity cost We can summarise this idea into the following figure:As we are faced with the problem of scarcity,there are 3 important economic decisions to be considered.i)What good
13、s&services to be produced and in what quantity i.e.how much to be produced?This concerns with the allocation of scarce resources among alternative uses.ii)How or by what method goods&services should be produced?This concerns with choosing the most efficient method of production.iii)For whom are good
14、s&services to be produced,i.e.who are to enjoy the goods&services produced?This concerns with the distribution of such goods&services.Opportunity cost of satisfying a want is the next best alternative that has to be forgone,(i.e.the cost of giving up something in order to obtain something else.)E.g.
15、A person has$5 and he can spend on chocolate or chewing gum or a combination of both.Price of a bar of chocolate =$0.50 Price of a bar of chewing gum =$0.20 Chocolate Chewing gum 10 0 8 5 6 10 4 15 2 20 0 25 There are 6 attainable combinations available to him using all his money.Assuming that he is
16、 consuming 6 bars of chocolate and 10 bars of chewing gum,the opportunity cost of the 8th bar of chocolate is what he must give up in order to get that 8th bar,which in this case is 5 bars of chewing gum.(10-5)The line on the above diagram shows a constant opportunity cost of consuming 2 additional
17、bars of chocolate is 5 bars of chewing gum.Opportunity cost is represented by the slope of that line.Production Possibility curve is defined as the curve that shows the greatest possible quantities of goods that can be produced with the available resources at a given level of technology.Example:Comb
18、ination Consumption goods Investment goods A 650 0 B 640 1.0 C 510 3.6 D 410 4.6 E 100 5.2 F 0 5.3 All combinations on or inside the PPC are attainable while those combinations outside the PPC are unattainable presently,given the resources and the level of technology.However,combinations of goods in
19、side the PPC imply that resources are not fully utilised or employed.1.The problem of scarcity requires certain economic decisions to be considered.What are these decisions?2.Define and explain,with examples,the following economic concepts:a.Opportunity Cost b.Production Possibility Curve 2.1 Defini
20、tion 2.2 Law of Demand 2.3 Individual Demand Schedule and Curve 2.4 Market Demand Schedule and Curve 2.5 A Change in Quantity Demanded and a Change in Demand 2.6 Factors which Cause the Demand Curve to Shift 2.7 Review Questions Demand refers to the range of quantities of a commodity,which a consume
21、r is willing and able to buy at different price levels at a given time.If all other things remain constant(ceteris paribus),the higher the price,the lower will be the quantity demanded and vice versa.The table below is the demand schedule,which lists the quantity of a commodity that would be demande
22、d at various price levels with a given income.It shows the relationship between quantity demanded and price.The demand curve is a graphical representation of the data in the demand schedule.It slopes downwards from left to right indicating that the quantity demanded increases as the price falls.Mark
23、et demand is the total demand of all the consumers for a particular good.It can also be derived by the lateral summation of the consumers demand curves.A change in quantity demanded is a movement along the demand curve.This is brought about by changes in the price of the good.A change in demand is t
24、he shift of the demand curve.Thus,an increase or decrease in demand means that greater or smaller quantity is purchased at the same price.This shift of the demand curve results from a change in any of the determinants of demand.a)Tastes and Preferences Consumers tastes and preferences change over ti
25、me.They may be influenced by factors like age,education and advertisements.b)Income An increase(or decrease)in income would usually lead to more(or less)of a good being bought.c)Future Expectations If consumers expect prices to rise in the future,they would buy more of the goods in order to avoid pa
26、ying more in future.However,if they expect prices to fall,they would check their consumption.d)Changes in Population Changes in the size and structure of population would affect demand.Generally,an increase in population would lead to an increase in demand.e)Prices of Other Goods Complements:coffee
27、and sugar.If price of coffee falls,more coffee would be bought.This would lead to an increase in demand for sugar.Substitutes:butter and margarine.If the price of margarine falls,consumers would shift their demand from butter to margarine,which is cheaper now.f)Government Policies If the government
28、introduces new taxes or increases existing tax rate,the taxpayers incomes would fall,thus reducing their demand for goods.1.Distinguish change in quantity demanded from change in demand.2.What factors will cause the demand curve to shift right?3.1 Definition 3.2 Law of Supply Definition 3.3 Individu
29、al Supply Schedule and Curve 3.4 Market Supply Curve 3.5 Distinction between Movement along Supply Curve and Shift of the Supply Curve 3.6 Factors which cause the Supply Curve to Shift 3.7 Review Questions Supply refers to the quantity of a commodity that is offered for sale at a given price and at
30、a particular point of time.If all other things remain constant(ceteris paribus),the higher the price,the greater will be the quantity supplied and vice versa.Supply schedule shows the relationship between quantity supplied of a good and the different price level of that good.Supply curve is a graphi
31、cal representation of the supply schedule.Market Supply refers to the total supply of a particular commodity by all the producers at a point of time.It is adding horizontally,all the individual supply curves at each different price level.a)Movement Along Supply Curve It is also known as a change in
32、quantity supplied as a result of a change in the price of the commodity,all other factors remain constant.b)Shift of the Supply Curve It is also known as a change in supply as a result of a change in the conditions of supply while the price of that commodity remain unchanged.a)Natural Calamities Any
33、 natural calamities such as earthquakes,flood,drought etc.will reduce supply and hence will shift supply curve to the left.b)Cost of Production Any changes in the cost of production as a result of any changes in the price of factor input will shift the supply curve.c)State of Technology Advancement
34、in technology will certainly reduce the cost of production and hence will increase output by shifting supply to the right.d)Government Policies Introduction of indirect taxes or subsidies will affect the cost of production and hence will shift the supply curve.e)Economic and Political Stability An e
35、conomic recession or political unrest will result in suppliers being uncertain about the market demand and their business conditions.Therefore,their supply may contract.1.Distinguish change in quantity supplied from change in supply.2.What factors will cause the supply curve to shift left?4.1 Defini
36、tion4.2 Effect on the Equilibrium Price and Quantity 4.2.1 When Conditions of Demand Changed(With Supply Unchanged)4.2.2 When Conditions of Supply Changed(With Demand Unchanged)4.2.3 When Both Conditions of Demand and Supply Changed 4.2.4 When Government Imposes an Indirect Tax 4.2.5 When Government
37、 Provides Subsidy to Producers4.3 Price Control 4.3.1 Price Ceiling 4.3.2 Price Floor4.4 Review Questions Equilibrium price arises when all the goods in the market will be cleared at that price.Equilibrium quantity arises when what is being brought to the market by the seller is being bought by the
38、consumers at the equilibrium price.If there is a change in the condition of demand that cause the demand curve to shift to the left,there will be a new equilibrium price and quantity as shown in diagram(i)below.If there is a change in the condition of supply that cause it to shift to the left,this w
39、ill result in a new equilibrium price and quantity as shown in diagram(ii)below.If there are changes in both the conditions of demand and supply,then the equilibrium price and quantity can only be determined provided we know:The directions of the shift(left or right)-The magnitude(distance)of the sh
40、ift-The elasticity(slope)of both demand and supply curves The imposition of an indirect tax will reduce the amount that firms are prepared to supply at each different price level.The effects can be shown below.Subsidy is a form of aid that will reduce the cost of production and hence will increase t
41、he supply of the good or service at each different price level.The effects can be shown below.Definition:It is the highest price that producers are allowed to charge on the goods or services provided.Purpose of implementation To encourage the consumption of certain goods To lower the cost of living
42、To protect low income earners From the diagram above:-Controlled price would now be lower There will be a shortage where quantity demanded exceeds quantity supplied Black market may develop as some consumers may be willing to pay a price higher than the controlled price to obtain the goods Definitio
43、n:It is the lowest price that a particular good or service can be purchased.Purpose of implementation Protect workers who have weak bargaining power Discourage the consumption of certain goods From the diagram above:-Controlled price would now be higher There will be a surplus where quantity supplie
44、d exceeds quantity demanded Unemployment may increase 1.Explain how prices are determined.2.How would the following events affect the equilibrium price and quantity traded of coffee when:a.Government gives subsidies to coffee producers.b.Bad weather destroys coffee plants.3.Explain:a.Price ceiling b.Price floor
