中级微观经济学 Fall 2004 复习
中级微观经济学 Fall, 2004 复习
Mission of economists Gary Becker: believe that the main purpose of economICs Is to understand and help to alleviate poverty 3 Who are the poor? How can one help?
Mission of Economists Gary Becker: “I believe that the main purpose of economics is to understand and help to alleviate poverty” Who are the poor? How can one help?
Minimum Wage Symptom: Wages low for migrants and unskilled workers Minimum wage law makes the firms less willing to hire migrants and unskilled workers. Unemployment may rise
Minimum Wage Symptom: Wages low for migrants and unskilled workers Minimum wage law makes the firms less willing to hire migrants and unskilled workers. Unemployment may rise
Anti-Discrimination Women are more likely poor because they do not receive equal pay Equal pay law makes women more expensive, thus reduces jobs availlable to them
Anti-Discrimination Women are more likely poor because they do not receive equal pay Equal pay law makes women more expensive, thus reduces jobs available to them
Rent control The poor spend too much money on housing Rent control will reduce the incentive for landlords to upkeep and repair the apartments, and reduce the supply of apartments for rent
Rent Control The poor spend too much money on housing Rent control will reduce the incentive for landlords to upkeep and repair the apartments, and reduce the supply of apartments for rent
Control Import Farmers are poor due to low agricultural prices as a result of imports Controlling import will raise the price of food hurting farmers in pasturing areas Reduce demand for china's exports
Control Import Farmers are poor due to low agricultural prices as a result of imports Controlling import will raise the price of food, hurting farmers in pasturing areas Reduce demand for China’s exports
Microeconomics theory can help us to fight poverty by Understand poverty Education, health, migration Evaluate anti-poverty policies On the poor On the non-poor
Microeconomics theory can help us to fight poverty by –Understand poverty Education, health, migration –Evaluate anti-poverty policies On the poor On the non-poor
The Use of microeconomics Positive analysis: Why and how? Explain and predict the behavior of micro agents Explain and predict price behavior Normative analysis Is the equilibrium good? How should we achieve a better equilibrium?
The Use of Microeconomics Positive analysis: Why and how? –Explain and predict the behavior of micro agents –Explain and predict price behavior Normative analysis: – Is the equilibrium good? –How should we achieve a better equilibrium?
The Theory of Economics does not furnish a body of settled conclusions immediately applicable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its possessor to draw correct conclusions John Maynard Keynes
The Theory of Economics does not furnish a body of settled conclusions immediately applicable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its possessor to draw correct conclusions --- John Maynard Keynes
Methodology in Microeconomics Optimization: Cost and benefit analysis Discrete decision Continuous decision Equilibrium: Demand=Supply Must be clear about market environment and institutional constraints
Methodology in Microeconomics Optimization: Cost and benefit analysis –Discrete decision –Continuous decision Equilibrium: Demand=Supply Must be clear about market environment and institutional constraints
