[经济学]Analysis of China’s economics.ppt

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[经济学]Analysis of China’s economics

Chen Yibo201205: PMI 50.4, Crisis? Analysis of China’s economics Outline What is economics What status we are facing Estimate economics’ develop direction What investment strategy 3 of 40 Scarcity, Choice, and Opportunity Cost Human wants are unlimited, but resources are not. Three basic questions must be answered in order to understand an economic system: What gets produced? How is it produced? Who gets what is produced? 4 of 40 Scarcity, Choice, and Opportunity Cost Every society has some system or mechanism that transforms that society’s scarce resources into useful goods and services. 5 of 40 Scarcity, Choice, and Opportunity Cost The basic resources that are available to a society are factors of production: Land Labor Capital 6 of 40 Scarcity, Choice, and Opportunity Cost Production is the process that transforms scarce resources into useful goods and services. Resources or factors of production are the inputs into the process of production; goods and services of value to households are the outputs of the process of production. 7 of 40 Scarcity and Choice in a One-Person Economy Nearly all the basic decisions that characterize complex economies must also be made in a single-person economy. Constrained choice and scarcity are the basic concepts that apply to every society. 8 of 40 Scarcity and Choice in a One-Person Economy Opportunity cost is that which we give up or forgo, when we make a decision or a choice. 9 of 40 Scarcity and Choice in an Economy of Two or More A producer has an absolute advantage over another in the production of a good or service if it can produce that product using fewer resources. 10 of 40 Scarcity and Choice in an Economy of Two or More A producer has a comparative advantage in the production of a good or service over another if it can produce that product at a lower opportunity cost. 11 of 40 Comparative Advantage and the Gains From Trade Colleen has an absolute advantage in the production of both wood and food because sh

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