Chapter 1 - The nature and method of economics. In this chapter you will learn: The definition of economics, about the economic way of thinking, how economists construct theories, the distinction between microeconomics and macroeconomics, the pitfalls to objective thinking.
Trang 1The Nature and Method
of Economics
Chapter 1
Trang 2In this chapter you will learn
The definition of economics
About the economic way of thinking
How economists construct theories
The distinction between
microeconomics and
macroeconomics
The pitfalls to objective thinking
Trang 3Macroeconomics & Microeconomics
Pitfalls to Objective Thinking
A Look Ahead
Trang 4Ten Key Concepts
The Individual
1. Facing Tradeoffs
2. Opportunity Costs
3. Choosing a Little More or Less
4. The Influence of Incentives
Trang 5Ten Key Concepts
Interaction Among Individuals
5. Specialization & Trade
6. The Effectiveness of Markets
7. The Role of Governments
Trang 6Ten Key Concepts
The Economy as a Whole & the
Trang 7Macroeconomics & Microeconomics
Pitfalls to Objective Thinking
A Look Ahead
Trang 8The Economic Perspective
Scarcity & Choice
Rational Behaviour
Marginal Analysis: Benefits &
Costs
Trang 9Macroeconomics & Microeconomics
Pitfalls to Objective Thinking
A Look Ahead
Trang 10Economic Methodology
The scientific method:
observe the world
Trang 11Economic Methodology
The scientific method:
observe the world
Trang 12Economic Methodology
generalizations: on average
other-things-equal assumption:
change one thing at a time
abstractions: omit irrelevant
facts & circumstances
graphical expression
Trang 13Economic Methodology
Policy economics
apply theories to set policies to
resolve economic problems or
further economic goals
Trang 14FORMULATING ECONOMIC POLICY
STATE GOALS POLICY OPTIONS IMPLEMENTATION
& EVALUATION
Trang 15Economic Goals
economic growth
Trang 16Economic Goals
economic growth
full employment
Trang 17Economic Goals
economic growth
full employment
economic efficiency
Trang 24Macroeconomics & Microeconomics
Pitfalls to Objective Thinking
A Look Ahead
Trang 25MACROECONOMICS
Trang 26MICROECONOMICS
Trang 27Positive & Normative
based upon subjective beliefs —
“what ought to be”
Trang 28Macroeconomics & Microeconomics
Pitfalls to Objective Thinking
A Look Ahead
Trang 29Pitfalls to Objective Thinking
Trang 30Pitfalls to Objective Thinking
Biases
Trang 31Pitfalls to Objective Thinking
Biases
Loaded Terminology
Trang 32Pitfalls to Objective Thinking
Biases
Loaded Terminology
Definitions
Trang 33Pitfalls to Objective Thinking
Biases
Loaded Terminology
Definitions
Fallacy of Composition
Trang 34Pitfalls to Objective Thinking
Trang 35Pitfalls to Objective Thinking
Trang 36Macroeconomics & Microeconomics
Pitfalls to Objective Thinking
A Look Ahead
Trang 37A Look Ahead
Chapter 2: a model of the production
choices facing an economy
Chapter 3: laws of demand & supply
Chapter 4: how the market system
works
Chapter 5: the international sector
Trang 38Macroeconomics & Microeconomics
Pitfalls to Objective Thinking
A Look Ahead
Trang 39THE ECONOMIC PROBLEM CHAPTER 2
COMING SOON