微观经济学英文课件

Week1:MicroeconomicsIITopic:MicroeconomicsandApplication

OutlineEssentialMicroeconomicsPrinciplesUsesofMicroeconomicsApplication1Subtopic1:EconomicPrinciplesEconomicisanacademicdisciplineofsocialsciencethatprovidesdiscourseabouttheallocationoflimitedresourcesineconomytoproducegoodsandservicestosatisfyunlimitedwantsEconomics,indeed,isabroaddisciplineitself.Microeconomicsandmacroeconomicsaretwoseparatedbutinterrelatedbranchesofeconomics.Therearemanymorefieldsthateachservedtofocusonaparticularareaofstudy.Continuously,SocialScienceEconomicsMicroeconomicsMacroeconomicsIndustrialfinancialHumanCapitalEnvironmentalOthersMathematicalEconomicsEconometricsAppliedStatisticsEditedbyYong,E.L.Continuously,MicroeconomicsFocusesonthestudyofchoiceanddecisionmakingforanindividualhouseholdandfirm,whilemacroeconomicsstudiesthebehaviouroftheeconomicasawhole.Thereisafewprinciplesaboutmicroeconomicsinsomebooks,whilemoreinothersContinuously,Basically,thegeneralprinciplesare:ScarcityofresourcesOpportunitycostsIncreasingopportunitycostRealOpportunityCostRealOpportunitycostandinefficiencyEditedbyYong,E.L.Continuously,Ifthefirmproduces10unitsofappleand6unitsofapplepiewantstoincreasetheproductionofapplepiebyoneunittothe7thunit.Ithastoforgo1unitofapplesothatresourcescanbeshiftedtoproducetheadditionalapplepie;OpportunityCostisthus1.EditedbyYong,E.L.Continuously,Ifthefirmproduces6unitsofappleand12unitsofapplepiewantstoincreasetheproductionofapplepiebyoneunittothe13thunit.Ithastoforgo2unitsofapplesothatresourcescanbeshiftedtoproducetheadditionalapplepie;OpportunityCostisthus2.EditedbyYong,E.L.Continuously,Thus,itisobviousthatopportunitycosthasincreasedfrom1to2unitsWhatshouldtheopportunitycostshouldbemeasuredinrealtermthaninmoneyterm?Ifitismeasuredinmoneyterm,seewhathappen:Supposeapplecosts$10perunitandapplepiecosts$20perunit.Thus,theopportunitycostremains1.Supposecostofbothgoodsdoubled,$20forappleand$40forapplepie.Thus,theopportunitycostremains1.EditedbyYong,E.L.Continuously,Now,askyourselfiftheproductionbythefirmefficientlyorequallyproduced?Firstly,tellwhichonedoyouthinkispossible:Efficientorequalorboth.Secondly,tellthereasonforittobeefficientorequalorboth.Thirdly,giveyourcreativepointofviewofhowsuchequalandefficientconditioncanbedisturbedorachieved.EditedbyYong,E.L.Continuously,1)Inthisexample,youshouldchoosetosaythatthePPFisefficient2)Inthesensethatresourcesareutilizedinmaximumamounttoproducebothgoods,asshownatpointa,b,candd.However,anypointinsidethePPFshouldnotbeefficientduetounusedresources.PointsbeyondthePPFareunreachableduetoinsufficientresources.3)Giveapointtohowthismightbedisturbed. -IfHealthMinistryimposesanewlawtoreduceapplepieduetoobesityinchildrenandincreaseappleproduction,theproducermaynotbeabletofindthebestcombinationofresourcesforthenewplanofproductionsetbythegovernment.EditedbyYong,E.L.Subtopic2:UsesofMicroeconomicsMicroeconomicshasitsessentialapplicationineveryaspectofhumanbehaviour,whichrelatedtoscarcity,choiceanddecisionmaking,PPPT.However,itdoesn’tmeanthateverydecisionmakingprocessbasedoneconomicprinciplesmustberightandthebest.EX:Thefund-hedgecollapsebytwo‘EconomicsNobelPrizeWinner’EditedbyYong,E.L.Continuously,Thestudyofmicroeconomicscanhelponetoconceptualizeimportantdecisionsthatconcerntoone’slifeandthisishoitoffersawaytomakebetterdecision.Oneobviousapplicationofmicroeconomicsisinthebusinessfield;firmsAfirmthatwantstoenterthebiotechnologyindustry,forinstance,mustatleastknowthedegreeofdemandforbiotechnologyproductsinthemarket,theresourcesavailabletoproducetheproductsandtheopportunitycostofusingtheresourcesintheproduction.EditedbyYong,E.L.Continuously,Microeconomicsisalsousedforevaluatingbroadquestioninregardstogovernmentpolicy(althoughthisismoretomacroeconomics).Changesintonewlawandregulationmaycauseeconomicresourcesallocatedinefficientlyasshownatthepreviousexample.EditedbyYong,E.L.Subtopic3:ApplicationConsiderthemarketforminivans.Ifpeopledecidetohavemorechildren,whatwouldhappentothepriceandquantityintheminivanmarket?ThreelevelofresponsesAssumptionsDescriptionofyouranswerYourjudgementaboutequityandefficiencyEditedbyYong,E.L.Continuously,AssumptionFactorsinvolvedareminivanandpriceofminivansandtherearemorechildrennow;ceteriesparibus.Agentsinvolvedareminivanproducersandhouseholds,whofaceeconomicproblemsandquestions.EX;ofbasiceconomicproblems:Eachhouseholdisconstraintwithlimitedincome,thusminivanisthebestchoicecomparedtootherbettervehicles,whichnowtheopportunitycost.EX;ofbasiceconomicquestions:(What)Eachhouseholddemandsminivanformaximizingutility.(HowMuch)Eachhouseholddemandsthenumberofquantityofminivanisdeterminedbythepriceandincome.((How)Householdsmustallocateincomeefficientlytopurchaseminivan.(Forwho)Householdspurchasetheminivanfromtheminivanproducersforfamilyusage.EditedbyYong,E.L.Continuously,The