Kinh tế vĩ mô-chương 1

Chapter 1
Economics and the Economy
David Begg, Stanley Fischer and Rudiger Dornbusch, Economics,
6th Edition, McGraw-Hill, 2000
Power Point presentation by Peter Smith
1.1
What is Economics?
ECONOMICS ...
is the study of how society decides:

What
For whom
How
to produce...
1.2
The price of oil
Tripled in 1973-74, and doubled again in 1979-80
… and affected people all over the world.
1.3
An increase in the price of oil affects
What to produce
less oil-intensive products
How to produce
less oil-intensive techniques
For whom to produce
oil producers have more buying power, importers have less
1.4
The distribution of world population and GNP, 1998
1.5
Scarcity forces choices to be made
Opportunity cost
a crucial concept in economic analysis
the quantity of other goods that must be sacrificed to obtain another unit of a good
1.6
The production possibility frontier
For each level of the output of one good,
the production possibility frontier shows
the maximum amount of the other good that
can be produced.
Film output
Food output
Production
possibility
frontier
1.7
The operation of markets
Market
a shorthand expression for the process by which
households’ decisions about consumption of alternative goods
firms’ decisions about what and how to produce
and workers’ decisions about how much and for whom to work
are all reconciled by adjustment of prices
1.8
Resource allocation
Resource allocation is crucial for a society
and is handled in different ways in different societies, e.g.:
Command economy
Mixed economy
Free market
1.9
Market orientation
Cuba
China
Hungary
Sweden
UK
USA
Hong Kong
Command
economy
Free
market
economy
1.10
Normative and Positive Economics
Positive economics deals with objective explanation
e.g. if a tax is imposed on a good its price will tend to rise
Normative economics offers prescriptions based on value judgements
e.g. a tax SHOULD be imposed on tobacco to discourage smoking
1.11
Micro and Macro
Microeconomics
offers a detailed treatment of individual economic decisions about particular commodities
Macroeconomics
emphasizes the interactions in the economy as a whole