.. ., ..

Introduction to Economics
(scarce resources)

G
G
G
G

What! G
G
G
How G G
For whom G

(
)
()

(Who) (market mechanism)

(government intervention)
safety net ( who debatable
)

Economy is Us.



56,000
56,000 (national income) xxx
xxx


(
() ()

.. ., ..

Scarcity: The core problem

20,000


(fact)
(good & services) factors of production (/)

- Land :
- Labor : "()" skill
- Capital : final goods produced for use in production of other goods.(
) ,
- Entrepreneurship : A B A
B
Entrepreneurship Entrepreneur

Entrepreneurship (
Entrepreneurship )
** Entrepreneurship debate (free market)

() ...

Opportunity cost :
Every time we use scarce resources in one way, we give up the opportunity to use them in other ways.

( land, labor, capital, Entrepreneurship),

.. ., ..

Production possibilities
(truck) (tank)
10 1
5 8
4 2 1

x , y
production possibilities curve
( 10 )

simplified

.. ., ..

* 1 2 ( B)
1 1 ( C) ** opportunity
cost 0.5
?


(
) opportunity cost
law of increasing opportunity cost.
Efficiency & Inefficiency
production possibilities curve
4 2
, however! production possibilities curve
(efficiency)
efficiency /
production possibilities curve
(potential)
PPC
inefficiency
Y (
Y
( B) ( C)

.. ., ..

Y

( PPC) (privatize)
(
) . -
..
(. .
),
X X

production possibilities curve ()

(, ) (
) PPC shift

PP2
** PP2 Economic Growth(), GDP
(
)

.. ., ..

Basic Decision
""
5 5 10

3
G
G
G
G
G
G
G

What! !
How G G
G
G
G
G
G
G
For whom G
G
G

()

The Mechanism of Choice

?
The invisible hand of a market economy
Adam Smith The Wealth of Nations invisible hand


(-
)
""

( )

( )
production possibility curve,


": market mechanism"
(
)

.. ., ..

"Indeed , the essential feature of the market mechanism is the price signal. "
()
()
->
() ""

"" ()
()
3 (what, who, for whom) "leave it
alone"(laissez faire)

laissez faire () Karl Marx

()(,
) ()
(surplus)
"" (
)

(GDP growth)

GDP (
)

* cheap
labour economy

John Maynard Keynes

()
(, )(
)

.. ., ..

(full employment)

* (play an active role) (not all-inclusive

role)
(, , )
(,
, )
- conservative()(): (liberalism, neoliberalism)


(,

)
- liberal()() (socialism)

liberal efficiency equity
*** conservative, liberal (/)
(
) , cons
/

** conservative republican , liberal democrat

.. ., ..

norm value
(
mixed economies ,
)

?
(How economies function)

()
(objectives) "
" (goals) / 1978 ""

Macro vs. Micro

2 Macroeconomics() Microeconomics()
"the big picture"
( PPC )

.. ., ..

Theory vs. Reality

( )
"ceteris parinus:
other thing remaining equal"


ceteris parinus
ceteris parinus