TAILIEUCHUNG - Lecture Principles of economics - Chapter 1: Thinking like an economist

Lecture Principles of economics - Chapter 1: Thinking like an economist. This chapter introduces the first three Core Principles (the Scarcity Principle, the Cost-Benefit Principle, and the Incentive Principle) and discusses three pitfalls that plague decision-makers in everyday life. It also makes distinctions between positive and normative economics and between microeconomics and macroeconomics. | Thinking Like an Economist Chapter 1 Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. McGraw-Hill/Irwin 1 Learning Objectives Explain and apply the Scarcity Principle Explain and apply the Cost-Benefit Principle Discuss three important pitfalls that occur when applying the Cost-Benefit Principle inconsistently Explain and apply the Incentive Principle The Scarcity Principle 3 The Scarcity Principle: Examples 4 The Cost-Benefit Principle Take an action if and only if the extra benefits are at least as great as the extra costs Costs and benefits are not just money 5 Applying the Cost – Benefit Principle Assume people are rational A rational person has well defined goals and tries to fulfill those goals as best they can Would you walk to town to save $10 on an item? Benefits are clear Costs are harder to define Hypothetical auction Would you walk to town if someone paid you $9? If you would walk to town for less than $10, you gain from buying the item in town 6 Cost

• Kinh tế học
• Principles of economics
• Lecture Principles of economics
• Market imperfections
• The international economy
• Scarcity principle
• Cost benefit principle
• Ten principles of economics
• People face tradeoffs
• Opportunity cost
• Marginal changes
• Economics of information
• Consumer choice
• Free rider problem
• Market transactions
• Welfare Economics
• Consumer surplus
• Demand curve
• Efficiency of markets
• Nature of an externality
• Market inefficiency
• Negative externalities
• Principles of microeconomics
• Lecture Principles of microeconomics
• Scarce resources
• Scarcity implies choice
• Choice implies cost
• Principles of agricultural economics
• Agricultural economics
• Economics of agricultural production
• Theory of consumer behaviour
• Economics of market demand
• Dynamics in demand analysis
• Analysis of agricultural markets
• Agricultural markets
• Economics of trade
• Costs of taxation
• Deadweight loss
• Laffer curve
• Supply side economics
• Market forces
• Supply and demand
• Market economies
• Competitive Markets
• Thinking like an economist
• Economic models
• Circular flow diagram
• Production possibilities frontier
• The gains from trade
• Production possibilities
• Comparative advantage
• Absolute advantage
• Costs of production
• Total revenue
• Total cost
• Opportunity costs
• Price elasticity of demand
• Price elasticity
• Midpoint method
• Demand curves
• Factors of production
• Demand for labor
• Production function
• Marginal product of labor
• Controls on prices
• Price ceiling
• Price floor
• Market outcomes
• Theory of consumer choice
• Budget constraint
• Indifference curve
• Marginal rate of substitution
• Measuring nation’s income
• Economy’s income
• Gross domestic product
• Components of GDP
• International trade
• Determinants of trade
• Equilibrium without trade
• Production and growth
• Economic growth
• Monetary system
• Functions of money
• Federal reserve
• Central bank
• Open economy macroeconomics
• Economy macroeconomics
• Closed economy
• Open economy
• Public goods
• Common resource
• Types of goods
• Cost benefit analysis
• Aggregate demand
• Aggregate supply
• Short run economic fluctuations
• Economic fluctuations
• Tax system
• Federal Government
• Marginal tax rate
• Budget surplus
• Macroeconomic policy
• Debate over macroeconomic policy
• Stabilize the economy
• Monetary policy