IGCSE经济学课件(英文版).ppt

IGCSE/OLevelEconomics,1.1Thebasiceconomicproblem,S1,Factorsofproduction,Naturalresources=landMan-maderesources=capitalHumanskillsandeffort=labourBusinessknow-how=enterprise,Production,Usinginputs(resources)tomakeoutputs(goodsandservices)tosatisfytheneedsandwantsofconsumers,Consumption,Usingupgoodsandservices(products)tosatisfyconsumersneedsandwants,Thebasiceconomicproblem,Humanwantsareunlimitedbutresourcesarescarce,So,weallhavetomakechoices,Thereisalimitedamountofresourcessuchasrawmaterials,machines,factoriesandskilledworkers.Butthereareanumberofdifferentwaysinwhichtheycanbeused.,Resourceallocationthereforeinvolvesdecidinghowbesttousescarceresourcestosatisfyasmanyneedsandwantsaspossible,CHOICE,CHOICE,Choice,Similarly,peopleandgovernmentsonlyhavealimitedamountofmoneybuthavemanyneedsandwantstosatisfy,$100,Food?Entertainment?Clothing?,Defence?Healthcare?Roads?,$100bn,Opportunitycost,OpportunitycostisthecostofchoiceWhatwouldyoubuywithUS$10?HowshouldthegovernmentspendUS$250million?(Or,shouldthegovernmentcuttaxesbyUS$250million?)Whatoccupationwillyouchoosewhenyoufinishyourstudies?HowshouldanewbusinessinvestUS$20million?Shouldweconservemorenaturalresources?andwhatarethenextbestalternativesforegone?,Productionpossibilitycurves,AfirmproducingcarsandtrucksWhatistheopportunitycostofproducing20moretrucks?,AneconomyproducingconsumergoodsandcapitalgoodsWhatistheopportunitycostofproducing15moretonnesofconsumergoods?,Productionpossibilitycurves,Productionpossibilitycurves,Productionpossibilitycurves(PPCs)showthemaximumcombinedoutputoftwoormoreproductsafirmoranentireeconomycanproducewithitsavailableresourcesResourcesarebeingusedefficientlyiftheyareproducingtheirmaximumoutputBut,becauseresourcesarelimited,producingmoreofoneproductmeansproducinglessofanotherPPCsarethereforeausefulwayofshowingtheopportunitycostofproducingmoreofoneproductintermsofhowmuchofanothermustbegivenup,IGCSE/OLevelEconomics,2.1Economicsystems,S2,Resourceallocation,Becauseproductiveresourcesarescarcerelativetohumanwantswemustdecide:,Economicsystems,Whoinaneconomydecideswhatgoodsandservicestoproduce,howtoproducethemandwhotoproducethemfor,andhowarethesedecisionsaremade?,Economicsystems,ChinaCuba,NorthKorea,DenmarkFranceItalySwedenUKManydevelopedeconomies,ArgentinaMauritiusNepalParaguay,BahamasSingapore,Themarketeconomicsystem,Privatesectorproducers,Consumers,Goodsandservices,Money,Production,Exchange,Consumption,Inafreemarketeconomicsystemalldecisionsaretakenbyprivatesectororganizationsandindividuals.Thereislittleornoroleforgovernmentorapublicsectorandthereforelittleornotaxationorpublicspending.,Thepricemechanism,Amarketisanysetofarrangementsthatbringstogetheralltheproducersandconsumersofagoodorservicesothattheycanengageinexchange.,Privatefirmsproducegoodsandservicestomaximizetheirprofits,Consumersconsumegoodsandservicestomaximizetheirutility(satisfaction),Asconsumerdemandforaproductrises,Productionbecomesmoreprofitable,soproducersincreaseoutput,Productionbecomeslessprofitable,soproducersreduceoutput,Marketpriceandquantitytraded,MARKETPRICERISES,MARKETPRICEFALLS,Asconsumerdemandforaproductfalls,Whatsgoodaboutthemarketsystem?,AwidevarietyofgoodsandserviceswillbeproducedtosatisfyconsumerwantsFirmsrespondquicklytochangesinconsumerwantsandspendingpatternsTheprofitmotiveoffirmsencouragesthemtodevelopnewproductsandusethemostefficientmethodsofproductionTherearenotaxes,Profitscanbeincreasedbyincreasingsalesand/orreducingcostsofproduction,Ifconsumerdemandisrising,priceswillriseandproductionbecomesmoreprofitable.Entrepreneurswillallocateresourcestotheirmostprofitableuses,Thereisnopublicsectorinatotallyfreemarketeconomicsystem,Howthemarketsystemcanfail,Marketfailure:whenfreemarketsfailtoproducegoodsandservicesthatareworthwhileorwhenthedecisionsofproducersorconsumersresultinwastefulorharmfulactivities,NATIONALPARK,Howthemarketsystemcanfail,Marketfailure:whenfreemarketsfailtoproducegoodsandservicesthatareworthwhileorwhenthedecisionsofproducersorconsumersresultinwastefulorharmfulactivities,Themixedeconomicsystem,Inamixedeconomyagovernmentcaninterveneindifferentmarketsinanattempttocorrecttheworstmarketfailures:ItcanprovideusefulandessentialgoodsandservicesItcanprovidegoodsandservicesforpeopleinthegreatestneedItcanemploypeopleinpublicsectororganizationsandprovidefinancialsupporttoprivatesectorfirmstoboostoutputandemploymentItcanoutlawtheproductionofharmfulgoodsanddangerousactivitiesItcanoutlawbusinesspracticesthatrestrictcompetitionormisleadconsumers,Themixedeconomicsystem,Amixedeconomythereforecombinestheadvantagesofamarketeconomicsystemwith:,Howmixed?,Governmentintervention:someproblems,Bycorrectingfailuresinsomemarkets,agovernmentmaydistorttheallocationofresourcesandcauseproblemsinothers:HightaxesonpeopleandfirmscandistortmarketpricesignalsandreduceworkincentivesLandregulationscanincreaseproductioncostsandthereforereducetheprofitabilityandsupplyofsomegoodsandservicesPublicsectororganizationsmaybeinefficientandproducepoor-qualitygoodsandservicesbecausetheydonothavetomakeaprofitSomegovernmentspendingmaybeforpoliticalorevenpersonalgain,IGCSE/OLevelEconomics,2.2Howmarketswork,S3,Whatisamarket?,Themarketforagoodorserviceconsistsofallthoseproducerswillingandabletosupplyitandallthoseconsumerswillingandabletodemandit,demandgoodsandservicestosatisfytheirneedsandwants,supplygoodsandservicestoearnprofits,Howmanyfizzydrinks?,Ifcanswere$5each,ManyproducersFewconsumers,Ifcanswere10centseach,FewproducersManyconsumers,Demand,ThewantorwillingnessofconsumerstobuyaproductTobeaneffectivedemandaconsumermusthaveenoughmoneytobuytheproductAspricerises,thequantitydemandedbyconsumerscontractsAspricefalls,thequantitydemandedbyconsumersextendsAdemandcurveslopesdownwards,Substitutesandcomplements,Substitutescansatisfythesamewant,Complementsareinjointdemand,or,or,or,Marketdemand,Thesumofallindividualconsumerdemandsforaparticularproduct,AriseindemandThemarketdemandcurveshiftsoutwardsPossiblecausesare:anincreaseindisposableincomesaftertaxariseinthepriceofsubstitutesafallinthepriceofacomplementtastesandfashionfavourtheproductanincreaseinadvertisingariseinthepopulationotherfactors,e.g.hotweatherincreasesdemandforcolddrinksandsuncreams,Marketdemand,Thesumofallindividualconsumerdemandsforaparticularproduct,AfallindemandThemarketdemandcurveshiftsinwardsPossiblecausesare:afallindisposableincomesaftertaxafallinthepriceofsubstitutesariseinthepriceofacomplementtastesandfashionfavourotherproductsareductioninadvertisingafallinthepopulationotherfactors,e.g.hotweatherreducesthedemandforwindercoats,No,iftheproductisaninferiorgoodAsincomerises,consumersbuylessastheyswitchtheirdemandtoothermorepreferableproducts,Yes,iftheproductisanormalgoodAsincomerises,consumersarewillingandabletobuymore,Incomeanddemand,Butwillariseinconsumerincomealwaysleadtoanincreaseindemandforaproduct?,Supply,ThewillingnessandabilityoffirmstomakeaproductavailabletoconsumersAspricerises,thequantitysuppliedbyproducersextendsbecauseproductionbecomesmoreprofitableAspricefalls,thequantitysuppliedbyproducerscontractsbecauseproductionbecomeslessprofitableAsupplycurveslopesupwards,Marketsupply,Thesumofallindividualproducersdecisionsaboutthesupplyofaparticularproduct,AriseinsupplyThemarketsupplycurveshiftsoutwardsPossiblecausesare:otherproductsbecomelessprofitabletoproduceafallinthecostoffactorsofproductionanincreaseinthesupplyofresourcestechnicalprogressandimprovementsinproductionprocessesandmachineryanincreaseinbusinessoptimismandexpectationsofprofitthegovernmentsubsidizesproductionand/orcutstaxesonprofitsotherfactors,e.g.goodweatherboostscropharvests,Marketsupply,AfallinsupplyThemarketsupplycurveshiftsinwardsPossiblecausesare:otherproductsbecomemoreprofitabletoproduceariseinthecostoffactorsofproductionafallinthesupplyofresourcestechnicalfailures,suchasacutinpowersuppliesormechanicalbreakdownsafallinbusinessoptimismandprofitexpectationsthegovernmentwithdrawssubsidiesand/orincreasestaxesonprofitsotherfactors,e.g.warsandnaturaldisasters,Thesumofallindividualproducersdecisionsaboutthesupplyofaparticularproduct,Marketequilibrium,Priceperunit,Quantitytradedperperiod,D,D,S,S,Equilibriumquantitytraded(Qe),Marketprice(Pe),0,AmarketisinequilibriumwheremarketdemandequalsmarketsupplyAttheequilibriummarketpricethequantityconsumerswishtobuyisexactlyequaltothequantityproducerswishtosellIfamarketisinequilibriumtherearenopressurestochangethemarketprice,Marketdisequilibrium,Priceperunit,Quantitytradedperperiod,D,D,S,S,Pe,0,Amarketisindisequilibriumifthequantityconsumerswishtobuyisnotmatchedbythequantityproducerswishtosell,P1,P2,AtpriceP1thereisanexcesssupply.Pricewillneedtofalltopersuadeconsumerstobuymoreandforproducerstocontracttheirsupply.,AtpriceP2thereisanexcessdemand.Pricewillneedtorisetoreduceconsumerdemandandtoencourageproducerstosupplymore.,Anincreaseinmarketprice,IfmarketdemandrisesORIfmarketsupplyfalls,Priceperunit,Quantitytraded,0,D,S,D,D1,D1,S,P1,P,Q,Q1,Quantitytraded,0,D,S,D,S,P1,Q1,Q,Priceperunit,S1,S1,P,Adecreaseinmarketprice,IfmarketdemandfallsORIfmarketsupplyrises,Priceperunit,Quantitytraded,0,D1,S,D1,D,D,S,P,P1,Q1,Q,Quantitytraded,0,D,S1,D,S1,P,Q,Q1,Priceperunit,S,S,P1,Howresponsiveisdemandtochangesinprice?,$1percan,Nowonly90cents,After,Before,Ifdemandisrelativelyelastic,asmallchangeinpricecausesarelativelylargechangeinquantitydemanded,Howresponsiveisdemandtochangesinprice?,After,Before,asmallchangeinpricecausesonlyarelativelysmallchangeinquantitydemanded,Nowonly$2,$2.20,Ifdemandisrelativelyinelastic,Priceelasticityofdemand,Howresponsiveconsumerdemandistoachangeinprice,andthereforehowrevenuesmayrespondfollowingachangeinprice,Percentagechangeinprice=$1/$5=20%Percentagechangeinpassengernumbers=5/100=5%Priceelasticityofdemand=20%/5%=4,Percentagechangeinprice=$0.5/$2.00=25%Percentagechangeinpassengernumbers=10/50=20%Priceelasticityofdemand=20%/25%=0.8,ELASTIC,INELASTIC,Demandforaproductwillbepriceelasticif:Why?Because:theproducthasmanyclosesubstitutesconsumerscanbuyinsteadifthepricerises,e.g.differentwashingdetergentstheproductisexpensive,suchasmanyluxuryitems,soevenasmallincreaseinpricemaybeunaffordableconsumersdonotneedtopurchasetheproductfrequentlysotheyhavetimetosearchforalternativesifpricerises,Priceelasticityofdemand,10%off,%changeinquantitydemandedisgreaterthanthe%changeinprice,PED1,Demandforaproductwillbepriceinelasticif:Why?Because:theproducthasveryfewclosesubstitutesforconsumers,e.g.electricitytheproductisalow-costitem,e.g.adailynewspaperorboxofmatchestheproductisanessentialitemandneededregularly,e.g.manybasicfooditemssuchasbread,riceandvegetables,Priceelasticityofdemand,10%off,totalsocialbenefit,Economicwelfarecanbeimprovedbyreducingproductionandconsumption,Economicwelfarecanbeimprovedbyencouragingmoreproductionandconsumption,Taxonlandfilltoincreaseby20%asthegovernmentattemptstoreducetheamountofwastethatendsupintheground.,Correctingmarketfailure,Howcanagovernmentinamixedeconomyensurethatfirmsandconsumerstakeaccountoftheexternalcostsandbenefitsoftheirdecisionsandactions?,Indiatoenforcenewregulationstocurbnoisepollution,SouthAfricabansplasticbagstoreducelitterRetailerscaughthandingoutthebagsnowfaceafineof100,000rand($13,800)ora10-yearjailsentence,TheChinesegovernmentannounces18recyclingprojectsaretoreceivegovernmentsubsidiescoveringupto50%oftotalinvestmentcosts,TheAustraliangovernmenthasbannedlivecattleexportstoIndonesiauntilsafeguardsareadoptedtoendthebrutalslaughterofanimals,Governmentunveilsplantotaxthecarbonemissionsoftheworstpolluters,Correctingmarketfailures,Toreduceexternalcosts,Raisetaxesonfirmswithactivitiesthatcreateexternalcoststoreducethosefirmsafter-taxprofits,e.g.taxesonemissionsfromtheuseoffossilfuels,onlandfillwasteandmineralextractionIncreaseindirecttaxesonproductsthatareconsideredharmfultoraisetheirpricesanddiscouragetheirconsumption,e.g.taxesoncigarettes,petrol,plasticbagsUseregulationsandfinestodiscouragetheproductionorconsumptionofproductsoractivitiesthatareharmful,e.g.smokingbans,planningcontrols,legallimitsonairandwaterpollutants,anti-litterlaws,Toincreaseexternalbenefits,Ensurepublicsectorprovisionofsociallyandeconomicallydesirablegoodsandservices,vidingfreevaccinationsandeducation,publicparks,publictransportandroadsProvidesubsidiestoprivatesectorfirmstoreducethecostofactivitiesandproductsthathaveexternalbenefits,e.g.subsidiesforrecycling,renewableenergy,organicfarmingUseregulationstoencouragefirmstochangetheirproductionmethods,e.g.rulestophaseouttraditionallightbulbstoencourageaswitchtolow-energylightbulbs,healthandsafetyregulations,animalwelfarelaws,IGCSE/OLevelEconomics,3.1Moneyandfinance,S5,Whydoweneedmoney?,Toexchangeforthosegoodsandservicesweeachneedandwantbutareunabletoproduceforourselves,becausewearenotself-sufficient(individuallywecannotproduceeverythingweneedandwant)wespecializeinthosetasksandproductiveactivitieswearebestabletodoandthereforeneedtotradewithproducersofotherproducts,Barter,Barterinvolvesexchanginggoodsandservices,i.e.paymentforoneproductismadewithanother,Problemswithbarterare:findingsomeonetoswapwith(theremustbeadoublecoincidenceofwants),howtoagreevalues(howmanyapplestoonecow,andhowmuchcheeseforoneapple?),Thefunctionsofmoney,IOU$20,Toovercometheproblemsofbarteramoneymustbe:,Prices,Choosingagoodmoney,Agoodmoneymustbe:acceptabletoothersinpaymentforgoodsandservicesdurablesothatitisnotworndownordamagedeasilythoughfrequentuseportablesothatitiseasytocarryarounddivisibleintosmallerunitsandvaluesscarce,otherwiseifitisfreelyavailableitwillbeoflittleornovaluetoothers,Whatismoney?,Notesandcoins+bankdeposits,Bankdepositsarenearmoneybecausetheycanbewithdrawntoprovidecashtomakepaymentsreasonablyquickly,Financingeconomicactivity,Bankslendmoneytopeople,firmsandgovernmentorganizationstofinancetheirspendingStockcanbesoldonthestockmarkettoprovidelong-termfinanceforcompaniesandgovernments,Thebankingsystem,Banksarefinancialintermediaries:theybringtogethercustomerswhowanttosavetheirmoneywithcustomerswhowanttoborrowit,SAVINGMONEYBanksneedmoneytomakeloansBanksoffersaversinteresttoencouragethemtosavetheirmoneyinsavingsaccountsTheinterestrateisarewardforsavingmoneySaversmaybeofferedhigherinterestratesforlong-termsavings,Thepriceofmoney,istheinterestrate(expressedasa%perunitofmoney)Thebaserateofinterestinaneconomyissetbythecentralbankorthegovernment.Itistheratewhichthecentralbankwillchargebanksforlendingthemmoneyiftheyrunshortofcash.,Forexample:toattractsavings,abankoffersitscustomersannualinterestof3%apersonwhosaves$1,000inasavingsaccountforoneyearwillreceive$30ininterestattheendofthatyear,Thepriceofmoney,Forexample:asmallfirmborrows$10,000repayableinoneyeartheinterestrateis5%peryearthetotalrepayableattheendoftheyear=$10,500,BORROWINGMONEYTheinterestrateisthecostofborrowingmoneyLendingmoneytopeopleandfirmsinvolvesadministrativecostsandrisksofnon-repayment.BanksmustcoverthesecoststomakeaprofitThelongerthetermoftheloanandthegreatertheriskofnon-repaymentthehighertheinterestratechargedInterestchargesalsocompensatebanksforpriceinflationwhichwillreducethevalueofthemoneytheyhavetiedupinloans,Theroleofacentralbank,ThecentralbankisatthecentreofthebankingsysteminmosteconomiesThemainfunctionofacentralbankistomaintainthestabilityofthenationalcurrencyandthemoneysupply,TheBankofEngland,THEBANKERSBANKSupervisesthebankingsystemandregulatestheconductofbanksHoldstheaccountsofbanksandtransfersmoneybetweenthemIslenderofthelastresorttobanksiftheyrunshortofmoney,Theroleofacentralbank,TheCentralBankofIndonesia,THEGOVERNMENTSBANKIssuesnotesandcoinsManagesthenationaldebtManagespaymentstoandfromthegovernmentManagesthenationsgoldandforeigncurrencyreservesOperatesthegovernmentsmonetarypolicy,Issuingstock,Stockisthenameusedtodescribemoneyraisedbyajointstockcompanyorcorporation,oragovernment.,Jointstockcompaniessellsharestoraisepermanentcapital.Sharesneverhavetoberepaid.Thepeopleandorganizationsthatbuysharesbecometheownersorshareholdersofjointstockcompanies.Eachshareheldinacompanyentitlesitsownertoashareofanycompanyprofits.Thispaymentfromprofitsiscalledadividend.,Agovernmentsellsloanstocksorbondstoraisemoneyforafixedperiodoftime,sometimesupto25yearsormore.Bondsarerepaidwithinterestattheendoftheirterm.,Thestockmarket,Astockexchange,orbourse,isabusinessorganizationthatenablesindividuals,companiesandgovernmentstobuyandsellloanstocksandcompanysharesontheglobalstockmarket.Thestockmarketistheglobalmarketforthebuyingandsellingofnewandsecond-handgovernmentstocksandcompanyshares.Thestockmarketbringstogetherallthoseindividualsandorganizationswillingandabletobuystocksandsharesandallthoseindividualsandorganizationswillingandabletosellthem.,Whyisthestockmarketimportant?,Farfewerstocksandshareswouldbetradediftheindividualsandorganizationsthatboughtthemwereunabletosellthemonatafuturedatetootherinvestorssotheycouldgettheirmoneyback.Ifgovernmentsandcompaniescannotselltheirnewlyissuedstocksandsharestheywillbeunabletoraisethecapitaltheyneedtofinancetheiractivities.Therewillbelesseconomicactivity.Fewergoodsandserviceswillbeproduced.,Whatdeterminesshareprices?,Shareholdersarelikelytoreceivebiggerdividendpayouts,DemandforsharesintheAlphaCompanyincreases,ThemarketpriceandquantityofsharestradedintheAlphaCompanyincrease,Dividendpaymentstoshareholdersmayfall,ThemarketsupplyofsharesintheBetaCompanyincreasesasshareholdersattempttoselltheirshares,ThemarketpriceandquantityofsharestradedintheBetaCompanyfalls,TheAlphaCompanyisexpectedtoannounceasignificantincreaseinannualprofits,AfallinordersattheBetaCompanysparksfearsoffallingprofitsandfactoryclosures,Stockmarketconditions,AbullishmarketSharepriceindexStockmarketpricesarerising,AbearmarketSharepriceindexStockmarketpricesarefalling,IGCSE/OLevelEconomics,3.2Occupationsandearnings,S6,Whydopeoplework?,WAGEFACTORS+NON-WAGEFACTORS,Wagefactors,Mostpeoplewillsupplytheirlabourtofirmstoearnanincome.Firmspa