OPPORTUNITY COST

Individual decision making

Scarcity 稀缺性 ->
Fundamental economic problem: How do we satisfy unlimited needs and wants with limited means or resources? 基本经济问题:
我们如何用有限的手段和资源来满足无限的需要和欲望
Choices 选择 ->
Involves a trade-off or sacrifice 包括交换或牺牲
Incentives 激励
A reward (e.g. subsidy) or penalty (e.g. tax) that encourages or discourages an action. Are designed to 'steer' or change
behaviour 鼓励或阻碍某一行为的奖励(如补贴)或惩罚(如税收)。是为了“引导”或改变行为
Preferences 首选项 ->
Typically have a rank-ordering; are listed in order of priority 通常有一个等级排序;是否按优先顺序列出
Opportunity Cost 机会成本
Next best (highest-valued) alternative forgone when a choice or decision is made 当做出选择或决定时，放弃下一个最佳(最高价
值)选择
通过有限的资源完成无限的欲望，因此需要做出取舍的选择（因为是有限的资源），这会获得到一些激励（内部激励和外部激励，
内部激励包括完成事后获得知识的满足和成就感，外部激励包括实体物质上的），然后按照喜好顺序进行排序。没被选择的就是机
会成本
Opportunity Cost
In order to get something, we need to give up something else
The potential benefits that an individual, investor, or business misses out on when choosing one alternative over another 个
人、投资者或企业在选择一种替代方案时错过的潜在利益
Opportunity cost is the next best alternative forgone or given up when a choice is made 机会成本是在做出选择时放弃的下一
个最佳选择
Optimisation 优化
People decide what to do by weighing all of the known pros and cons of the different available options and trying to pick the
best feasible options 人们通过权衡所有已知的不同选项的利弊来决定做什么，并试图挑选最佳的可行方案
在权衡利弊时，需要考虑到 explicit cost 显性成本 和 implicit cost 隐性成本
Happiness value and cost题
考虑除了选定的选择外，其它选择的 net value = happiness value - cost
比较选项之间的net value大小，根据opportunity cost概念可得，net value最大的选项就是opportunity cost
由于opportunity cost由explicit cost和implicit cost共同组成，所以要找出这两个成本分别是多少
Explicit cost（显性成本）：选择的活动实际花费多少
Implicit cost（隐性成本）：最大的net value
Opportunity cost = Explicit cost + Implicit cost
When you make decision, you compare what you will get versus what you will pay for, taking into account all the available
information and feasible options 当你做决定时，你要比较你将得到什么和你将支付什么，考虑到所有可用的信息和可行的选择
Any cost that has already been paid and cannot be recovered should not affect your current decision 任何已经支付且无法收
回的费用不影响你当前的决定
先算每个选项的净价值(Happ value-cost), 最大的为机会成本。选择已选的选项的cost(显性)加上机会成本的净价值(隐性)得出机
会成本
Marginal benefit 边际效益
the increase in total benefit from one additional unit of an activity. Average benefit is total benefit divided by the number of
units. 一项活动每增加一个单位所增加的总效益。平均收益是 总收益除以单位数。 额外的一单位能增加多少总收益
边际成本
Marginal cost 边际成本
the increase in total cost from one additional unit of an activity. Average cost is total cost divided by the number of units 一
项活动每增加一个单位所增加的总成本。平均成本是 总成本除以单位数 （额外一单位的消费带来的的总成本会增加多少）
Incentive 激励：something that motivates or drives one to behave in a certain way 激励或驱使某人以某种方式行事的事物
Intrinsic incentives 内在激励
- The feeling of personal fulfillment and satisfaction that people get from doing certain things, like learning a new sill just for
the fun of it 人们从做某些事情中获得的个人成就感和满足感，比如仅仅为了好玩而学习一门新技能
Extrinsic incentives 外在激励
- A material reward (like money) for accomplishing a task, or some punishment for failure to do so. All economic incentives are
extrinsic motivations 对完成任务的物质奖励(如金钱)，或对未完成任务的惩罚。所有的经济激励都是外在动机
Market - A group of buyers and sellers of a particular goods or services 一组特定商品或服务的买家和卖家
buyers/consumers - demand 需求 MARKET sells/producers - supply 供给
A (perfectly or highly) competitive market (完全或高度)竞争的市场
Has many buyers and many sellers 有很多买家和卖家
No individual buyer or seller (or group of buyers or sellers) can influence or dictate the price (price-taking) and/or quantity
traded (no monopoly) 任何个人买方或卖方(或买方或卖方集团)都不能影响或支配价格(定价)和/或交易数量(没有垄断)
卖家和买家共同决定市场的需求
The good produced/sold is the same (homogeneous/no product differentiation) 生产/销售的产品是相同的(同质/无产品差异化)
Sellers are free to enter or exit the market at will (no barriers) 卖方可以自由进出市场(没有壁垒)
Buyers and sellers know the same things about the market etc (perfect information) 买者和卖者对市场了解相同(完全信息)
卖家和买家掌握的信息是一致的
There are no third-party spillover effects (no externalities) 没有第三方溢出效应(没有外部性)
Four different market structures:
Perfect cometition 有很多卖家，商品相同，卖家不能控制价格
Monopolistic comptition 有很多卖家，商品略有不同，卖家对自己的商品定制价格
Oligopoly 卖家很少，策略互动（每一企业的经济策略依赖于竞争对手计划的制定和修改）
Monopoly 市场上只有一个卖家是价格的制定者
Demand 需求
Represents the behaviour of buyers (consumers) in a market 代表了市场中买家（消费者）的行为
A relationship between price and quantity demanded. It describes the behaviour of buyers 价格和需求量之间的关系。它描述了
买家的行为
Quantity demanded 需求量
Is the amount of any good or service people are willing and able to buy per time period 指人们在每个时间段愿意并能够购买的
任何商品或服务的数量
The amount of a product that buyers are willing and able to purchase at a given price 在给定价格下，购买者愿意并能够购买的
产品数量
需求代表了一种行为，需求量代表了数量
The movement of demand curve (倾斜度）
需求曲线（demand curve): a graph that shows the relationship between the price of a product and the quantity demanded 把价
格与需求量联系在一起的曲线
Demand curve slope down: 价格下降，需求量增加
Curve Slope 斜率: (y1-y2)➗(x1-x2)
可能影响到curve变化的因素：
Diminishing marginal benefit (utility/happiness/satisfaction)
Opportunity Cost
Income effect
Substitution effect
Law of demand 需求定理：Price increases, Quantity demanded decrese; Price decrease, Quantity demanded increase 价格降低
需求增高，价格上升需求减少
Individual Demand: 个人需求
The quantities one consumer will but at a range of prices, ceteris paribus 在其他条件不变的情况下，一个消费者将以一系列价格购
买的数量
Market Demand: 市场需求
The quantities all consumers will buy at a range pf prices, ceteris paribus 所有消费者将在不同价格范围内购买的数量，在其他条件
不变的情况下
An individual demand can determine the market demand 个体需求可以决定市场需求
The market demand curve is found using horizontal summation of the indicidual demand schedules or curves 市场需求曲线是
用单个需求表或曲线的水平求和得到的 -> individual+individual=market 市场需求是所有个人需求之和
The movements VS The shift
Change in quantity demanded
Movement along the same demand curve 沿着同一需求曲线的运动
Caused by a change in the product price 由产品价格变动引起的
 When income rises, the demand for a normal good will rise 当收入增加时，对一种正常商品的需求就会增加
When income rises, the demand for an inferior good will fall 当收入增加时，对劣质商品的需求就会下降
Change in demand
A shift in the demand curve, either to the left or right 需求曲线向左或向右移动
Caused by any change that alters the quantity demanded at every price 由任何改变每个价格下需求量的变化引起

Two goods are substitutes if a rise in the price of one good leads to a higher demand for another good 如果一种商品的价格
上涨导致对另一种商品的需求增加，那么两种商品就是替代品
Two goods are complements if a rise in the price of one good leads to a lower demand for another good 如果一种商品的价格
上涨导致另一种商品的需求下降，那么两种商品就是互补品
The shift of demand curve （整体移动）

Demand increase:
使每一种价格水平下的需求量增加的任何变动，使需求曲线demand curve向右移动
Demand decrease:
使每一种价格水平下的需求量减少的任何变动，使需求曲线demand curve向左移动
主要关于每一价格下需求量的变动
影响需求增加或减少的变量：
Prices of related goods 相关商品价格
Expected future prices 预计未来价格
Income 收入
Expected future income and credit 预期未来收入和信贷
number of buyers 买家数量
Tastes or preferences 品味或偏好
 只有当除了用坐标轴表示的变量以外的其他相关变量移动时，曲线才会移动
由于价格用纵轴表示，所以价格变动表现为沿着需求曲线移动(movement along the demand curve)
收入，相关物品价格，爱好，预期和买家数量不能用任何一条坐标轴表示，因此其中任何一种变量的移动都将使需求曲线移动(shift
the demand curve)
Supply 供应
Represents the behaviour of sellers (producers) in a market 代表了市场中卖家（生产商）的行为
a relationship between price and quantity supplied. It describes the behavior of sellor 价格与供给量之间的关系。它描述了卖方
的行为
Quantity supplied 供应量
Is the amount of any good or service businesses (firms) are willing and able to sell per time period 是指企业愿意愿意并能够在
每个时间段出售的任何商品或服务的数量
供应代表了一种行为，供应量代表了数量
The movement of supply curve
供给曲线：把价格和供给量联系在一起的曲线
Supply curve slope up: 价格增加，供给量增加
Law of supply 供给定理: Price increases, Quantity supply increase; Price decrease, Quantity supply decrease 价格增加，供给增加
(更多收入)；价格减少，供给减少(减少亏损)
Individual supply: 个人供给
Is supply for one seller in a market 是指市场中一个卖家的供应
Market supply: 市场供应
Is the sum of the suppliers of all sellers in a market 是指市场上所有卖家的供给之合
The market supply curve is the horizontal sum of the supply curves of all sellers in the market 市场供给曲线是市场上所有卖家
的供给曲线的水平之和
The movements VS The shift
Change in quantity supplied
Movement along the same supply curve 沿着同一供给曲线的运动
Caused by a change in the product price 由产品价格变动引起的

Change in supply
A shift in the supply curve, either to the left or right 供给曲线向左或向右平移
Caused by any change that alters the quantity supplied at every price 由任何改变每个价格下供给量的变化引起
The shift of the supply curve

Supply increase:
使每一种价格水平下的供给量增加的任何变动，使供给曲线supply curve向右移动
Supply decrease:
使每一种价格水平下的供给量减少的任何变动，使供给曲线supply curve向左移动
影响供给增加或减少的变量：
Prices of related goods 相关商品价格
Prices of resources and other inputs 资源和其他投入的价格
Expected future prices 预计未来价格
Number of sellers 卖家数量
Productivity 生产力
Technology 技术
Equilibrium 平衡
Bring the market demand and supply together 把市场需求和供给结合起来
A situation where supply and demand are balanced 供需平衡

Equilibrium price and equilibrium quantity 均衡价格和均衡数量

The price that balances the quantity demanded and the quantity supplied 平衡需求量和供给量的价格
Excess Supply or Surplus 供应过剩或盈余
A situation where the quantity sellers wish to sell exceeds the quantity buyers wish to buy at a certain price 卖方希望出售的
数量超过买方在一定价格下希望购买的数量的一种情况

Excess Demand or Shortage 需求过剩或短缺

A situation where the quantity buyers wish to buy exceeds the quantity sellers wish to sell at a certain price 买方希望购买的
数量超过卖方在一定价格下希望出售的数量的一种情况
Comsumer Surplus 消费者剩余
Willingness to pay 支付意愿
the maximum amount that a buyer will pay for a good, it measures how much the buyer values the good or service 买家为一
件商品支付的最高金额，它衡量了买家对该商品或服务的重视程度
Consumer Surplus
the buyer’s willingness to pay for a good minus the amount the buyer actually pays for it. It measures the (net) benefit that
buyers receive from a good as the buyers themselves perceive it 买者对商品的支付意愿 减去 买者实际支付的金额。它衡量的是
买家从一件商品中获得的 (净)利益，就像买家自己认为的那样
consumer surplus measuring buyers' gains from transaction 衡量购买者从交易中获得的收益的消费者剩余

The area below the demand curve and above the price measures the consumer surplus in the market 需求曲线下方和价格上
方的面积表示市场上的消费者盈余
Producer Surplus
the amount a seller is paid for a good minus the seller's marginal cost 卖方为一件商品 支付的金额 减去 卖方的边际成本
producer surplus measuring seller's gains from transaction 衡量卖方的交易收益

The area above the supply curve and below the price measures the producer surplus in a market 供给曲线上方和价格下方的面
积表示市场上的生产者盈余
Competitive market
Free markets produce the quantity of goods that maximises the sum of consumer and producer surplus 自由市场生产的商品
数量使消费者和生产者剩余的总和最大化