TAILIEUCHUNG - Lecture Principles of economics (Asia Global Edition) - Chapter 11

This chapter introduces the model’s two key pieces—the aggregate-demand curve and the aggregatesupply curve. After getting a sense of the overall structure of the model in this chapter, we examine the pieces of the model in more detail in the next two chapters. | Chapter 11 The Economics of Information McGraw-Hill/Irwin Copyright © 2015 by McGraw-Hill Education (Asia). All rights reserved. Learning Objectives Explain how middlemen add value to market transactions Use the concept of rational search to find the optimal amount of information market participants should obtain Define asymmetric information and describe how it leads to the lemons problem Discuss how advertising, conspicuous consumption, statistical discrimination, and other devices are responses to asymmetric information Information and the Invisible Hand All parties have all relevant information Without free information, market results are not efficient Bargaining for a bowl in Kashmir Parties must decide how much information to gather Information gathering strategies differ How The Middleman Adds Value Buyers sometimes choose among several version of a product Each has complex feature sets Research options Company web site Ask friends and family Consumer Reports, online product reviews Visit stores, ecommerce sites Consumer Choice: Buying DSLR Camera Best Denki recommends US$1,200 Nikon D7100 DSLR camera Sales rep seems knowledgeable Your next move is Thank them and do more research Trust the sales rep and buy them Go home and buy at the best price online ($950) Evaluate the importance of Immediate possession Best price Post-sales service and support The Value of the Middleman Sales representatives supply information to buyers Manufacturers can offer direct sales to bypass middlemen Information makes markets more efficient Purchasing the bowl in Kashmir Selling Babe Ruth Koh wants to sell a Win the War stamp. His reservation price is $300 An ad in the local newspaper cost $5 eBay cost is 5% of the Internet auction price The maximum price in the local market is $400 Two eBay shoppers have secret reservation prices of $800 and $900, respectively Selling Win the War stamp Benefits of eBay Card sells for $800 on eBay less $40 commission Ellis nets $760, $460 above

• Kinh tế học
• Principles of economics
• Lecture Principles of economics
• Aggregate demand
• Aggregate supply
• Short run economic fluctuations
• Economic fluctuations
• 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
• Tax system
• Federal Government
• Marginal tax rate
• Budget surplus
• Macroeconomic policy
• Debate over macroeconomic policy
• Stabilize the economy
• Monetary policy