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1、 Intoductioncaciy：If weculd alhae our want satiied， theewd e n neefr pdution r distriuton. Mnywoulbe rreleant。 fountel te world io ike tht.a is cnomi？Eonomic i th ud of how peoplnd soieties ho to empy crce reources hch a alenatve es producegoodsan servces, and ho to dsribute mBy rsouces, econmiss ea
2、 lad，lar and capital, suc a mainesn aw ateril， ichan be used in roucionhey re alsocaledfactors o prduction。 Rsorcesre usedtoprduce evrythi fromappsto oo，and tis bcausesrces re sarce elatiet s that the economic problem arisThe basic ecooi problesEery soiey has to fa three basic conomi roms we cnnot p
3、rodceeeryhigthatevryone wouldike:1. What would w prodce？(The alocatnroblm）2. Wht metods should e sd o produc thsgds andsrvic？ （eproduction rblem)3. Who hold recve h goosnseviceta re prouced? (Theistbuon proem)Micro-conomis： te tyoeconomc aciitis finiviainsittios ch as fims（prce dteition； bsnss struc
4、ure; econoies f scae； compeiin dmonoly； cost-benefitanalsis;factos oductionand thei rwads,tc）Mcroecoomic： hesd of h conoy as ole （polems iknflation, umployen, taxation andoernment sending，balanc of amets， national incme nd wfare，the edistibtion finom andelth,et.)ow shoud an eonom be eauatd？A.econmic
5、 rowt . eveloneployent C。 nflation D。 fair istribuion of incoe (Gin Coeffient) E. balanc opetsFiriciples： he opportnity ct： the oporuny costfay ction is tevalue th forone lernativctinCoong oeaternave meas hat ohe altraehveto b g u Therefore, tereal os o n aton is he vao h mot attrctive altenative ar
6、gnal naysis s th nalsi the elatinsbeteen incremets dcementso the toal uantit of some eonociable.Efficiecy anstat isnot possie to mainai th present level of outut with le pt, or ht is impossb oget mo oput god fom gien inpsThee Schoolof thougtTh uply side/fremarketpesetive (classcal ecomits；neoclaca e
7、cmsts;monearist； mrket ecoomists； supplyides； Thatherit; fremarketers; theiezfaire)：Adam Smit （1723-1790); An Enir to theNature d Causeso the l ations (776)； n incotlad, attendd teuiversof Glsgow and Oxd； Th Wealhof Nipovid a gud topoliies in thatera，e.g.avotig freerade andess sate cnrol; they fcus
8、hei attetin on the facrs whhncou peole to podueand exhnge me goods ad evices。 Main ias：1 Econom eeoscue of the actions individuls。n Thalth of Ntins： “I is tfrom beneolence ofthbthr, th breer or h r thatwe expet r nnerbtfro tir red t the own self-interst” n oher wors, al h participants i th sytem wke
9、rs, eplyers, csues ry to mxmiehw utility. Consumes i r to buy godsn servicsacheapy athy can Proers wll t to charehih pices a pay wagso a hy maximize hi pfits.Wrker wil am obtain hih wage。 rough a thissefseeking devlpa ysem hich nednoplannig， ut whic ork as f ninvisible handwa uiig the conom.2. Free
10、to hoose iscntral fetur of tis aprch. Chrle Rowley, aedingiish suppy-ider, aruesthat： “fredm hooses anend iniselfTh fee negatv nnot pstie, esinninividualfno particuaroorities，butlavi imfree to chos amon ucalernaties as ar avaibo imthout resrictins.”。 Indviduals knowwhatisinthe o interest and aecpeen
11、t tochosewiely.The nly excetin are hos ho aeo aleo lok fter thmelMiltondma， oe of e leadin cnomstin the gro wrote t: “freed is a tebl bjectivr espsible niviuals。We donot beliee infreedom f mam or cldn。” Comlsory isurance schmes for illns ndoldae sould be spp beasei retrictshe reedm of the indvidua S
12、ilarly,t i e esponsibilityof inviduloseek ployment.I people rallywa ork, they can fin Jobsareawa vailable， ut peopl hve to ccpt lower age in or toobinthm. 4. Thestatshul play a crucial, but sall role i soety， particularly in economic ffairsbecaue limitthe freomofindividas to do atthey at。 Putanoher wy， tey elieve tht thebst way t alocate rercess o leave i t th arket Theywant to limit
