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Lecture "Macro economic: Chapter 1" provides students with the knowledge: Economic concept and economic systems, the market Forces of Supply and Demand, the theory of consumer choice, the Costs of production, competitive Markets Firms print,... You are invited the same reference.
MicroEconomic Lecturer: LƯƠNG MỸ THÙY DƯƠNG MicroEconomic Topic 1: Economic concept and Economic systems Topic 2: The Market Forces of Supply and Demand Topic 3: The Theory of Consumer Choice Topic 4: The Costs of Production Topic 5: Firms in Competitive Markets Topic 6: Monopoly Topic 7:BookMonopolistic © McGraw-Hill Company Australia, 1999 Competition and Oligopoly PPS t/a Economics for Business 2/e 1-2 REFERENCE BOOKS 1-Economics for Business – Lan Fraser – John Glonea – Simon Fraser 2-Economics – Paul A Samuelson and William D Nordhaus 3-Kinh tế Vi mô - Trường Đại học Công nghiệp TP.HCM 4-Kinh tế Vi mô - Trường Đại học Kinh tế TP.HCM 5-Nguyên lý kinh tế học – David Begg Economic Concepts Topic Plan • Economic concept • Basic Economic Problems • Economic Systems What is Economics ? Economics Is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people Scarcity • Resources are scarce in relation to the unlimited needs and wants of consumers Resources • Also called Factors of Production • All inputs which are used in the production and distribution of goods and services Types of Resources LAND : All natural endowments Examples- soils, crops, minerals LABOUR : Physical and mental work of people Examples- teachers Economics • -Positive Economics is descriptive – a relating of facts and circumstance based upon observation -Normative Economics is prescriptive – a relating of solution and action based upon ethics and value judgment Basic Economic Questions Scarcity Choices must be made What To Produce? How To Produce? For Whom To Produce? Economic Systems • The way a nation is organised to respond to the problem of scarcity • Different economic systems use different methods to answer the Basic Economic Questions is – What to produce – How to produce – For whom to produce Unlimited Needs and Wants Scarce Productive Resources Relative Scarcity Basic Economic Questions The Need for an Economic System Types of Economic Systems • The Market economy • The Command economy • The Mixed economy Market Economies ( Adam Smith) • Also called Capitalist or Private Enterprise systems • The invisible hand Features are: • Productive resources are predominantly owned by the private sector Features of market economies (cont.) • Economic decision making is decentralised in the level of government intervention is low • Economic motivation is self interest (utility or profit) Features of market economies (cont.) • Allocation by price • Efficiency is valued Command Economies (Karl Marx) • Also called Socialist or Centrally Planned Economies Features are: • Productive resources are owned predominantly by the state or government sector Features of command economies (cont.) • Economic decision making is undertaken by a central authority or government • Collective welfare in goods/services are distributed to benefit the state as a whole, rather than individuals Features of command economies (cont.) • Allocation by non-price mechanisms • Equity is valued The Mixed Economy (John Maynard Keynes) • All modern economies are said to be a mixture of - market forces and - government intervention • In the past, major examples of centrally planned economies were the former USSR and China These now have allowed levels of market forces to operate Market Vs Command Systems • Advantages of market systems – eg: economic freedom, efficiency etc Disadvantages of market systems – eg: unequal distribution of income and wealth External diseconomies rise, Monopoly, insufficient public goods, business cycles • Advantages of command systems – eg: Equity • Disadvantages of command systems – eg: inefficiencies and waste, Slow economic growth Economies in Transition The “All-Out” Approach • Examples: Poland, East Germany, Russia, Czech republic • Rapid price and trade liberalisation – immediate opening of markets – privatisation of most state owned enterprises – reform of tax, legal and financial system Consumers’car in 1985 Country Russia United States of America Germany French Japan Car/1000 people 36 562 412 380 226 ... McGraw-Hill Company Australia, 19 99 Competition and Oligopoly PPS t/a Economics for Business 2/e 1- 2 REFERENCE BOOKS 1- Economics for Business – Lan Fraser – John Glonea – Simon Fraser 2-Economics... 2-Economics – Paul A Samuelson and William D Nordhaus 3-Kinh tế Vi mô - Trường Đại học Công nghiệp TP.HCM 4-Kinh tế Vi mô - Trường Đại học Kinh tế TP.HCM 5-Nguyên lý kinh tế học – David Begg Economic... Production Possibility Schedule A B C D E Tractors 10 0 200 300 400 VCRs 800 600 400 200 The PPF Graph Tractors 40030 0- E PPF D C 20 0- B 10 0- A 200 400 600 800 Video Recorders Maximum Output Levels