Dề thi môn vi mô, microeconomic, microeconomic in natural resources management

Báo cáo, tài liệu tham khảo, đề thi đề cương môn kinh tế vi mô, kinh tế vi mô trong khoa học quản lí, tài nguyên thiên nhiên hay các ngành liên quan đến kinh tế, microeconomic đề cương ôn tập bằng tiếng anh cho các nghành kinh tế chuyên anh hoặc các ngành tương đương

TOPIC 1

CORE ISSUES

Core issues 1

When you have completed your

study of this topic, you will be able to

1 Define economics and explain the questions that economists try to answer

2 Explain the core ideas that define the economic way of

thinking

CHECKLIST

1

When you have completed your

study of this topic, you will be able to

3 Explain and illustrate the concepts of scarcity,

production efficiency, and tradeoff using the production possibilities frontier

4 Calculate opportunity cost

5 Explain what makes production possibilities expand

CHECKLIST

1

When you have completed your study

of this topic, you will be able to

6 Describe what, how, and for whom goods and services

are produced in Vietnam; and in the global economy

7 Use the circular flow model to provide a picture of how households, firms, and governments interact

CHECKLIST

1.1 DEFINITION AND QUESTIONS

!   Economics is the study of

A   money

B   stock market

C   the economy

D   choice

1.1 DEFINITION AND QUESTIONS

All economic questions and problems arise because human wants exceed the resources available to satisfy them

!   Scarcity

Scarcity is the condition that arises because wants exceeds the ability of resources to satisfy them

Faced with scarcity, we must make choices—we must choose

among the available alternatives

The choices we make depend on the incentives we face

1.1 DEFINITION AND QUESTIONS

!   In economics, scarcity means that:

A A shortage of a particular good will cause the

price to fall

B A production-possibilities curve cannot accurately represent the tradeoff between two goods

C Society's desires exceed the want-satisfying

capability of the resources available to satisfy those desires

D The market mechanism has failed

1.1 DEFINITION AND QUESTIONS

!   Economics Defined

Economics is the social science that studies the choices that individuals, businesses, governments, and entire societies

make as they cope with scarcity, the incentives that influence

those choices, and the arrangements that coordinate them

Two big economic questions:

•  How do choices determine what, how, and for whom goods and services get produced?

•  When do choices made in self-interest also promote the social interest?

1.1 DEFINITION AND QUESTIONS

!   What, How, and For Whom?

Goods and services are the objects (goods) and actions (services) that people value and produce to satisfy human wants

What goods and services get produced and in what

quantities?

How are goods and services produced?

1.1 DEFINITION AND QUESTIONS

!   When Is the Pursuit of Self-Interest in the

Social Interest?

- The choices that are best for the individual who makes them are choices made in the pursuit of self-interest

(for example: firm’s interest is likely its profit,

consumer’s interest is generally referred to his utility)

- The choices that are best for society as a whole are

choices made in the social interest

1.1 DEFINITION AND QUESTIONS

Can choices made in self-interest also serve the

social interest?

1.2 THE ECONOMIC WAY OF THINKING

!   Core Economic Ideas:

1.2 THE ECONOMIC WAY OF THINKING

!   Rational Choice

A rational choice is a choice that uses the available

resources to best achieve the objective of the person making the choice

We make rational choices by comparing costs and benefits

1.2 THE ECONOMIC WAY OF THINKING

!   Cost: What You Must Give Up

Opportunity cost is the best thing that you must give up

to get something—the highest-valued alternative forgone

Sunk cost is a previously incurred and irreversible cost

A sunk cost is not part of the opportunity cost of a current

choice

1.2 THE ECONOMIC WAY OF THINKING

!   Benefit: Gain Measured by What You Are Willing

to Give Up

Benefit is the gain or pleasure that something brings.

!   On the Margin

A choice made on the margin is a choice made by

comparing all the relevant alternatives systematically and

incrementally

1.2 THE ECONOMIC WAY OF THINKING

1.2 THE ECONOMIC WAY OF THINKING

Making a Rational Choice

When we take those actions for which marginal benefit exceeds or equals marginal cost

!   Responding to Incentives

An incentive is a reward or a penalty—a “carrot” or a

“stick”—that encourages or discourages an action

1.2 THE ECONOMIC WAY OF THINKING

!   Micro and Macro Views of the World

Microeconomics: The study of the choices that individuals

and businesses make and the way these choices interact and are influenced by governments

Macroeconomics: The study of the aggregate (or total)

effects on the national economy and the global economy of the choices that individuals, businesses, and governments make

Players in the economy

Consumers

International participants

Business Firms Governments

1.2 THE ECONOMIC WAY OF THINKING

!   Economics as a Social Science

Economists distinguish between

•  Positive statements: What is

•  Normative statements: What ought to be

The task of economic science:

To test positive statements about how the economic world works and to weed out those that are wrong

1.2 THE ECONOMIC WAY OF THINKING

Unscrambling Cause and Effect

The central idea that economists use to unscramble cause and

effect is ceteris paribus

Ceteris paribus means “other things being equal” or “other things remaining the same.”

By changing one factor at a time and holding other relevant factors constant, we are able to investigate the effects of the factor

EYE ONS Is wind power

free?

The first wind farm in Vietnam went into

operation is the project

in Binh Thuan province But what would be the cost—the opportunity cost—of that electricity?

1.3 PRODUCTION POSSIBILITIES

!   Production Possibilities Frontier

– The boundary between the combinations of goods and

services that can be produced and the combinations that

cannot be produced, given the available factors of production and the state of technology

– The PPF is a valuable tool for illustrating the effects of

scarcity and its consequences

column of the table

The line through the

points is the PPF

1.3 PRODUCTION POSSIBILITIES

– The PPF puts three features of production possibilities in

sharp focus:

•  Attainable and unattainable combinations

•  Efficient and inefficient production

•  Tradeoffs and free lunches

1.3 PRODUCTION POSSIBILITIES

– Because the PPF shows the limits to production, it separates

attainable combinations from unattainable ones

– Figure 3.2 on the next slide illustrates the attainable and

unattainable combinations

The PPF separates

attainable combinations

from unattainable

combinations

We cannot produce at any

point outside the PPF

such as point G

We can produce at any

point inside the PPF or on

the frontier

3.1 PRODUCTION POSSIBILITIES

– Efficient and Inefficient Production

produce more of one good or service without producing less

of something else

– Figure 3.3 on the next slide illustrates the distinction

between efficient and inefficient production

point H, more could be

produced of both goods

without forgoing either

good Production is

inefficient

1.3 PRODUCTION POSSIBILITIES

– Tradeoffs and Free Lunches

– A tradeoff is an exchange—giving up one thing to get

something else

– A free lunch is a gift—getting something without giving up something else

– Figure 3.3 on the next slide illustrates the distinction

between a tradeoff and a free lunch

3 When production is on

the PPF, we face a

tradeoff

4. If production were inside

the PPF, there would be

a free lunch

Moving from point H to

point D does not involve

a tradeoff

1.3 PRODUCTION POSSIBILITIES

!   A point on a nation's production-possibilities curve represents:

A An undesirable combination of goods and services

B Combinations of production that are unattainable, given current technology and resources

C Levels of production that will cause both

unemployment and inflation

D The full employment of resources to achieve a

particular combination of goods and services

1.4 OPPORTUNITY COST

!   The Opportunity Cost of a Cell Phone

– The opportunity cost of a cell phone is the decrease in the quantity of DVDs divided by the increase in the number of

cell phones as we move along the PPF

– Figure 3.4 illustrates the calculation of the opportunity cost

of a cell phone

Moving from A to B, 1 cell phone costs 1 DVD

1.4 OPPORTUNITY COST

Moving from B to C, 1 cell phone costs 2

DVDs

1.4 OPPORTUNITY COST

Moving from C to D, 1 cell phone costs 3

DVDs

1.4 OPPORTUNITY COST

Moving from D to E, 1 cell phone costs 4

DVDs

1.4 OPPORTUNITY COST

Moving from E to F, 1 cell phone costs 5

DVDs

1.4 OPPORTUNITY COST

– Wind power is not free

– Its opportunity cost includes:

(1)  the cost of wind turbines,

(2)  the cost of transmission lines, and

(3)  power transmission loss

– Wind turbines produce electricity only when there is wind,

which is, at best, 40 percent of the time and, on average, about

25 percent of the time

– Also some of the best wind farm locations are a long way from major population centers, so transmission lines would be long and power transmission losses large

Is Wind Power Free?

EYE on the ENVIRONMENT

1.4 OPPORTUNITY COST

!  Increasing Opportunity Cost

The opportunity cost of a

cell phone increases as

more cell phones are

produced

1.4 OPPORTUNITY COST

!   Slope of the PPF and Opportunity Cost

– The magnitude of the slope of the PPF measures

opportunity cost

– The slope of the PPF in Figure 3.4 measures the opportunity

cost of a cell phone

– The PPF is bowed outward, as more cell phones are

produced, the PPF becomes steeper and the opportunity cost

of a cell phone increases

1.4 OPPORTUNITY COST

!   Opportunity Cost Is a Ratio

– The opportunity cost of a cell phone is the quantity of DVDs forgone divided by the increase in the quantity of cell phones gained

– The opportunity cost of a DVD is the quantity of cell phones forgone divided by the increase in the quantity of DVDs

gained

– When the opportunity cost of a cell phone is x DVDs, the opportunity cost of a DVD is 1/x cell phones

1.4 OPPORTUNITY COST

!   Increasing Opportunity Costs Are Everywhere

– Just about every activity has an increasing opportunity cost

If we produce at point

J, we produce only

cell-phone factories and no

remains at 5 million cell

phones every year

1.5 ECONOMIC GROWTH

1 But if we cut production

! Which of the following correctly characterizes the shape of

a production-possibilities curve?

A A straight line indicating the law of increasing opportunity costs applies

B A straight line when there is constant opportunity costs

C A line that curves outward when resources are perfectly adaptable in the production of different goods

D A line that curves inward when resources are perfectly

adaptable in the production of different goods

!   According to the law of increasing opportunity costs:

A Greater production leads to greater inefficiency

B Greater production means factor prices rise

C Greater production of one good requires

increasingly larger sacrifices of other goods

D Higher opportunity costs induce higher output per unit of input

1.6 Vietnam Economy: WHAT, HOW, AND FOR WHOM?

!   What Do We Produce?

We divide the vast array of goods and services produced into:

•  Consumption goods and services

•  Capital goods

•  Government goods and services

•  Export goods and services

Consumption goods and services are goods and services

that are bought by individuals and used to provide personal enjoyment and contribute to a person’s standard of living Examples are movies and laundromat services

Capital goods are goods that are bought by businesses to

increase their productive resources

Examples are cranes and trucks

1.6 WHAT, HOW, AND FOR WHOM?

Government goods and services are goods and services

that are bought by governments

Examples are missiles, bridges, and police protection

Export goods and services are goods and services

produced in one country and sold in other countries

Examples are Catfish (Tra and Basa) produced by farmers in

An giang sold to US

1.6 WHAT, HOW, AND FOR WHOM?

Figure 2.1(a) shows

the relative magnitudes

of the goods and

1.6 WHAT, HOW, AND FOR WHOM?

1.6 WHAT, HOW, AND FOR WHOM?

Land

Land includes all the “gifts of nature” that we use to produce

goods and services

Land includes all the things we call natural resources

Land includes minerals, water, air, wild plants, animals, birds, and fish as well as farmland and forests

1.6 WHAT, HOW, AND FOR WHOM?

Labor

Labor is the work time and work effort that people devote to

producing goods and services

The quality of labor depends on how skilled people are—

what economists call human capital

Human capital is the knowledge and skill that people

obtain from education, on-the-job training, and work

experience

1.6 WHAT, HOW, AND FOR WHOM?

Capital

Capital consists of tools, instruments, machines, buildings,

and other items that have been produced in the past and that businesses now use to produce goods and services

Capital includes semifinished goods, office buildings, and computers

Capital does not include money, stocks, and bonds They are

financial resources

1.6 WHAT, HOW, AND FOR WHOM?

Entrepreneurship

Entrepreneurship is the human resource that organizes

labor, land, and capital

Entrepreneurs come up with new ideas about what and how to produce, make business decisions, and bear the risks that arise from these decisions

1.6 WHAT, HOW, AND FOR WHOM?

!  For Whom Do We Produce?

Factors of production are paid incomes:

Rent Income paid for the use of land

Profit (or loss) Income earned by an entrepreneur for running a business

1.6 WHAT, HOW, AND FOR WHOM?

Functional distribution of income is the distribution of income among the factors of production

Personal distribution of income is the distribution of income among households

1.6 WHAT, HOW, AND FOR WHOM?

Figure 2.2(a) shows the

1.6 WHAT, HOW, AND FOR WHOM?

Figure 2.2(b) shows the

personal distribution of

income in 2008 ( US and

VN):

The poorest 20% earned

only 3% of total income

(VN: 7.3%)

The richest 20%

earned 51 % of total

income (VN: 45.4%)

!   The Countries

Advanced Economies

The richest 29 countries (or areas)

Almost 1 billion people (15 percent of the world’s population) live in advanced economies

1.6 WHAT, HOW, AND FOR WHOM?

THE GLOBAL ECONOMY

Emerging Market and Developing Economies

Emerging market economies are the 28 countries of Central and Eastern European and Asia

Almost 500 million people live in these countries

Developing economies are the 118 countries in Africa, Asia, the Middle East, Europe, and Central and South America that have not yet achieved high average incomes for their people More than 5 billion people live in these countries

1.6 WHAT, HOW, AND FOR WHOM?

Energy

The location of oil,

natural gas, and coal

determines the sources

of the world’s energy

Figure 2.3(a) shows the

distribution of oil

1.6 WHAT, HOW, AND FOR WHOM?