章节克鲁格曼2009 worth chlecturekw2.pptx

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章节克鲁格曼2009 worth chlecturekw2.pptx

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chapter:1Krugman/Wells?2009?WorthPublishersFirstPrinciples

AsetofprinciplesforunderstandingtheeconomicsofhowindividualsmakechoicesAsetofprinciplesforunderstandinghowindividualchoicesinteractAsetofprinciplesforunderstandingeconomy-wideinteractions

IndividualChoiceIndividualchoiceisthedecisionbyanindividualofwhattodo,whichnecessarilyinvolvesadecisionofwhatnottodo.Basicprinciplesbehindtheindividualchoices:1. Resourcesarescarce.2. Therealcostofsomethingiswhatyoumustgiveuptogetit.3. “Howmuch?”isadecisionatthemargin.4. Peopleusuallytakeadvantageofopportunitiestomakethemselvesbetteroff.

ResourcesAreScarceAresourceisanythingthatcanbeusedtoproducesomethingelse.Ex.:Land,labor,capitalResourcesarescarce–thequantityavailableisn’tlargeenoughtosatisfyallproductiveuses.Ex.:Petroleum,lumber,intelligence

TheRealCostofSomethingIsWhat

YouMustGiveUptoGetItTherealcostofanitemisitsopportunitycost:whatyoumustgiveupinordertogetit.Opportunitycostiscrucialtounderstandingindividualchoice:Ex.:Thecostofattendingtheeconomicsclassiswhatyoumustgiveuptobeintheclassroomduringthelecture.Sleep?WatchingTV?Rockclimbing?Work?Allcostsareultimatelyopportunitycosts.

OpportunityCostInfact,everybodythinksaboutopportunitycost.Thebumperstickersthatsay“Iwouldratherbe…(fishing,golfing,swimming,etc…)”arereferringtothe“opportunitycost.”Itisallaboutwhatyouhavetoforgotoobtainyourchoice.IWOULDRATHERBESURFINGTHEINTERNET

GotaPenny?Atmanycashregistersthereisalittlebasketfullofpennies.Peopleareencouragedtousethebaskettoroundtheirpurchasesupordown.Ifit’stoosmallasumtoworryabout,whycalculatepricesthatexactly?Whydowehavepennies?Sixtyyearsago,apennywasequivalentto30secondsworthofwork—itwasworthsavingapennyifdoingsotook

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