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1、Introduction to Economics,Chen yanru,Introduction to the course,Syllabus Teacher textbook,teacher,Chen Yanru (Amy) ICB office business teaching department 62737142,Textbooks:Essentials of Economics,Author: Paul Krugman Professor of Economics at Princeton University Received BA from Yale and his PHD
2、from MIT. His research is mainly in the area of international trade, where he is one of the founders of the new trade theory, which focuses on increasing returns and imperfect competition, He also works in international finance, with a concentration in currency crises. Write writes extensively for n
3、ontechnical audiences. His latest trade book is best selling collection of his Times articles entitled the Great Unraveling: Losing Our Way in the new Century.,美国经济学家克鲁格曼获得2008年诺贝尔经济学奖 新华网斯德哥尔摩月日电 瑞典皇家科学院日宣布，将年诺贝尔经济学奖授予美国普林斯顿大学经济学家保罗克鲁格曼，以表彰他在分析国际贸易模式和经济活动的地域等方面所作的贡献。 瑞典皇家科学院发表声明说，克鲁格曼整合了此前经济学界在国际贸易
4、和地理经济学方面的研究，在自由贸易、全球化以及推动世界范围内城市化进程的动因方面形成了一套理论。,Contents of the book,Part 1 what is economics Part 2 supply and demand Part 3 The producer Part 4 markets and efficiency Part 5 Market structure: beyond perfect competition Part 6 Extending market boundaries Part 7 Introduction to Macro-economics Part
5、 8 Short-Run economic Fluctuations,The Ordinary Business of Life,Important questions: How does our economic system work? How does it manage to deliver the goods? When and why does our economic system go astray, leading people into counterproductive behavior? Why are there are ups and downs in the ec
6、onomy? That is, why does the economy sometimes have a bad year? Finally, why is the long run mainly a story of ups and downs?,Basic concepts,Economy and economics:,Economy: is a system for coordinating societys productive activities Economics: the study of economies, at the level both of individuals
7、 and of society as a whole Microeconomics: Individual decision, individual customer and suppliers Macroeconomics: overall up and downs of the economy: country, industry,Market economy and command economy,Market economy: an economy in which decisions about production and consumption are made by indiv
8、idual producers and consumer Command economy: there is a central authority making decision about production and consumption.,Command and Control,Laissez-Faire Free Markets,Mixed,The Spectrum of Economic Systems,Invisible hand,Invisible hand refer to the way a market economy manages to harness the po
9、wer of the self-interest for the good of the society.,My benefit, your cost,traffic congestion: Each time someone drives to work, as opposed to taking public transportation, he can easily impose $15 or more in hidden cost on other driver.,Market failure,When the individual pursuit of ones own intere
10、st, instead of promoting the interests of the society as a whole, can actually make society worse off. Traffic congestion Air and water pollution Overexploitation of natural resource,Good times , bad times,growth Fluctuation Economic cycle: expansion prosperity Contraction recession Or Economic boom
11、 Economic slowdown Economic recession Economic recovery,This pattern repeats itself regularly, though not on a fixed schedule. The length of the cycle isnt predictable either and may be measured in months or in years.,An engine for discovery,Why does economy grow over time? Why does economics growth occur faster in some times and places than in others? Economics is not a body of concrete truth, but an engine for the discovery of concrete truth. -Alfred Marshall,
