190 Cho1 The Fundamentals of Economics Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY Ch01 The Fundamentals of Economics Ch01 The Fundamentals of Economics
1907 01-3 1.1 What is economics? Economics is the study of how societies choose to use scarce productive resources that have alternative uses,to produce commodities of various kinds, and to distribute them among different groups. Economics is the study of how society manages its scarce resources. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 01-3 • Economics is the study of how societies choose to use scarce productive resources that have alternative uses, to produce commodities of various kinds, and to distribute them among different groups. • Economics is the study of how society manages its scarce resources. 1.1 What is economics?
A90 01-4 Basic Structure 经济 Economy 经济主体 市场 Economic Agents Markets Decision Makers Economic Actors 居民户 厂商 政府 Households Firms Goverments Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 01-4 Basic Structure 居民户 Households 厂商 Firms 政府 Goverments 经济主体 Economic Agents Decision Makers Economic Actors 市场 Markets 经济 Economy
01-5 v的 The Three Problems of Economic Organization ·Every society must answer three fundamental questions:what,how,and for whom? What kinds and quantities are produced among the wide range of all possible goods and services? How are resources used in producing these goods? And for whom are the goods produced (that is,what is the distribution of income and consumption among different individuals and classes)? Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 01-5 The Three Problems of Economic Organization • Every society must answer three fundamental questions: what, how, and for whom? • What kinds and quantities are produced among the wide range of all possible goods and services? • How are resources used in producing these goods? • And for whom are the goods produced (that is, what is the distribution of income and consumption among different individuals and classes)?
01-6 1.2 Microeconomics and Macroeconomics Microeconomics deals with: Behavior of individual units ·When Consuming -How we choose what to buy Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 01-6 1.2 Microeconomics and Macroeconomics • Microeconomics deals with: – Behavior of individual units • When Consuming – How we choose what to buy
1907 01-7 3树 Microeconomics and Macroeconomics Microeconomics deals with: Behavior of individual units ·When Producing -How we choose what to produce Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 01-7 • Microeconomics deals with: – Behavior of individual units • When Producing – How we choose what to produce Microeconomics and Macroeconomics
01-8 0 © Microeconomics and Macroeconomics Microeconomics deals with: Markets:The interaction of consumers and producers Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 01-8 • Microeconomics deals with: – Markets: The interaction of consumers and producers Microeconomics and Macroeconomics
01-9 1907 What is a Market? ·Markets -A geographically defined area where buyers and sellers interact to determine the price of a product or a set of products. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 01-9 What is a Market? • Markets – A geographically defined area where buyers and sellers interact to determine the price of a product or a set of products
01-10 0 砂 What is a Market? Markets vs.Industries -Industries are the supply side of the market. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 01-10 What is a Market? • Markets vs. Industries – Industries are the supply side of the market
1907 01-11 What is a Market? ·Defining the Market The market parameters must be set before an analysis of the market can take place. Economics ECONOMICS MANAGEMENT SCHOOL,TONGJI UNIVERSITY
Economics ECONOMICS & MANAGEMENT SCHOOL, TONGJI UNIVERSITY 01-11 What is a Market? • Defining the Market – The market parameters must be set before an analysis of the market can take place
