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1、Chapter 1: The Scope of Economic AnalysisHKAL Microeconomics T. W. G. Hs. Lo Kon Ting Memorial CollegeReferences:References:A-Level MicroeconomicsA-Level Microeconomics, CH. 1, 2 & 15, CH. 1, 2 & 15HKALE MicroeconomicsHKALE Microeconomics, CH. 1, 2, 14 & 19, CH. 1, 2, 14 & 19張五常張五常經濟解釋卷一經濟解釋卷一第一至第三章
2、第一至第三章Exchange and ProductionExchange and Production, CH. 1 & 5, CH. 1 & 5By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20041 1CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisWhat is Economics?n nan empirical science resting on the assertion or postulate of self-interest to e
3、xplain observable economic behavior or phenomenan nhistory repeats itself, however, facts do not speak for themselves n neconomists therefore need to theorize in order to explain and predict facts/economic phenomena. By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20042 2CH1-The Scope of Economic
4、AnalysisCH1-The Scope of Economic AnalysisWhat is Economics?n nAs an empirical science, economic theories are constructed:to explain human behavior by finding to explain human behavior by finding out what conditions lead to what out what conditions lead to what consequencesconsequencestoto predict p
5、redict the occurrence of similar the occurrence of similar events in the future and how behavior events in the future and how behavior will change when there is a change in will change when there is a change in the constraints they face.the constraints they face.By Mr. LAU san-fat/ver 2004By Mr. LAU
6、 san-fat/ver 20043 3CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisPositive Versus Normative Economicsn nPositive economics contains descriptive statements, propositions and predictions about the world. n nNormative economics makes statements about what ought to be, or about wha
7、t a person, organization or nation ought to do.n nEx 1:Ex 1: Is A-L economics concerning about positive Is A-L economics concerning about positive or normative one?or normative one?By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20044 4CH1-The Scope of Economic AnalysisCH1-The Scope of Economic An
8、alysisAttributes of Economic Analysisn nEconomic analysis is solely scientific and strictly positive.n nEconomic theory rests on understanding of human traits.theories are abstractions of the worldtheories are abstractions of the worldto theorize is to pick out the relevants to theorize is to pick o
9、ut the relevants from the irrelevantsfrom the irrelevantsn nEconomists construct and test theories.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20045 5CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisMethodology Scientific Inquiry: Constructing Theoriesn ninteresting real-wor
10、ld observations prompt the construction of a theoryn npostulating economic behavior (i.e. making axioms or basic assumptions)n npicking out relevants from the irrelevants (i.e. making abstractions)By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20046 6CH1-The Scope of Economic AnalysisCH1-The Scop
11、e of Economic AnalysisMethodology Scientific Inquiry: Constructing a Theoryn nestablishing the interrelationship among variables and ideas in the form of hypothesis (including test conditions & predicted outcomes) i.e. If A, then B via logical deductionn nmaking a logically consistent implication or
12、 predictionBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20047 7CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisMethodology Scientific Inquiry: Constructing a Theoryn nconfronting the real-world observations with the testable implication (i.e. testing the hypothesis/model/the
13、ory)n na theory is valid if it is confirmed/not rejected by the factsBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20048 8CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisMethodology Scientific Inquiry: Constructing a Theoryn na theory is invalid if it is rejected by facts, an
14、d is being discarded or amended with adding more constraints and is being re-tested.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20049 9CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisSix Basic Postulatesn nEach person desires many goods & has many goals.n nFor each person,
15、some goods are scarce.n nEach person is willing to forsake some of a good to get more of other goods.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20041010CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisSix Basic Postulatesn nThe more of a good one has, the larger the total p
16、ersonal use value, but the lower the marginal personal value of a unit.n nNot all people have identical tastes and preferences.n nPeople are innovative but consistent.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20041111CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisThe Val
17、idity and Usefulness of a Theoryn na theory is said to be a useful if it has implications that are potentially refutable but have not yet refutedEx 2:Ex 2: Can a theory be proved wrong? Can a theory be proved wrong?n nWe never say a theory is proven because we just do not know whether the next set o
18、f collected data will still agree with the implications or not. By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20041212CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisThe Validity and Usefulness of a Theoryn nIf the empirically collected data agree with the implications, then
19、the theory is said to be confirmed and valid. If not, it is refuted or rejected and invalid.n nA theory that can never be rejected is useless because it is either a tautology (a definitional identity) or we are not clear what is about.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20041313CH1-The
20、 Scope of Economic AnalysisCH1-The Scope of Economic AnalysisThe Validity and Usefulness of a Theoryn nThe usefulness of a theory is based on its explanatory and predictive power. As As Milton FriedmanMilton Friedman said, The value of a said, The value of a model does not depend on the realism mode
21、l does not depend on the realism of its assumptions but on its ability to of its assumptions but on its ability to explain or predict real world events.“explain or predict real world events.“By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20041414CH1-The Scope of Economic AnalysisCH1-The Scope of
22、Economic AnalysisAttributes of a Useful Theoryn neconomic theory must be a simplification of economic theory must be a simplification of realityrealityn nassumptions may be unrealistic because:assumptions may be unrealistic because: the statement does not give an exhaustive the statement does not gi
23、ve an exhaustive description of an objectdescription of an object the statement is false or highly improbablethe statement is false or highly improbable the statement (excluding test conditions) is used the statement (excluding test conditions) is used to formulate pure cases or ideal typesto formul
24、ate pure cases or ideal typesn nthe arguments must be the arguments must be logically consistentlogically consistent if A then B and B then C, A is preferred to Cif A then B and B then C, A is preferred to CBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20041515CH1-The Scope of Economic AnalysisC
25、H1-The Scope of Economic AnalysisAttributes of a Useful Theoryn nimplications and predictions must be testable or observablen nthe theory is potentially refutable by factsn nvariables in the theory must be observableBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20041616CH1-The Scope of Economic
26、AnalysisCH1-The Scope of Economic AnalysisAttributes of a Useful Theoryn nthe power to generalizeif a hypothesis is repeatedly supported by if a hypothesis is repeatedly supported by the evidence and repeatedly accepted (or the evidence and repeatedly accepted (or confirmed), it may be called a lawc
27、onfirmed), it may be called a lawn nGreat predictive power, not forecasting powerEx 3:Ex 3: What is the difference between forecast & What is the difference between forecast &predict?predict?By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20041717CH1-The Scope of Economic AnalysisCH1-The Scope of
28、Economic AnalysisHypothesis, Ad Hoc Theory and Tautologyn nHypothesis is logically deducted, testable, refutable, and usually expressed in terms of If A (assumptions), then B (implications).By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20041818CH1-The Scope of Economic AnalysisCH1-The Scope of E
29、conomic AnalysisHypothesis, Ad Hoc Theory and Tautologyn nRejected theory can be modified by adding more assumptions to the theory at the expense of losing its power to generalize, i.e. it can apply to a narrower variety of situations. By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20041919CH1-Th
30、e Scope of Economic AnalysisCH1-The Scope of Economic AnalysisHypothesis, Ad Hoc Theory and Tautologyn nan ad hoc theory is a very specific theory that can be applied only to one (or a few) particular situation.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20042020CH1-The Scope of Economic Analy
31、sisCH1-The Scope of Economic AnalysisHypothesis, Ad Hoc Theory and Tautologyn nAn example of ad hoc theory:If it rains + outdoor + without umbrella If it rains + outdoor + without umbrella + without raincoat + without cap + + without raincoat + without cap + without hat + without shelter + not witho
32、ut hat + without shelter + not standing under a tree + not standing standing under a tree + not standing under a cover (A), under a cover (A), then youll get wet (B).then youll get wet (B).n nExampleExample from Steven N. S. Cheung: dropping from Steven N. S. Cheung: dropping temperature in high mou
33、ntainstemperature in high mountainsBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20042121CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisHypothesis, Ad Hoc Theory and Tautologyn nA tautology (a definitional identity) is so generalized and true for all values of the variables.
34、 n nExample: A four-leg-animal has four legs n nIt is empty and has no explanatory nor predictive power at all. By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20042222CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisHypothesis, Ad Hoc Theory and Tautologyn nBut a tautology coul
35、d be developed into a useful theory if testable conditions are added. The Coase Theorem and Quantity Theorem of Money are two examples of these. By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20042323CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisHypothesis, Ad Hoc Theory and
36、 TautologyEx 4:Ex 4: Is an ad hoc theory or a tautology better Is an ad hoc theory or a tautology better theory?theory?By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20042424CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisHypothesis, Ad Hoc Theory and Tautologyn nA useful theo
37、ry must then strive for the A useful theory must then strive for the right balance between the degree of right balance between the degree of generality and refutability by avoiding generality and refutability by avoiding adding too specific or generalized conditions adding too specific or generalize
38、d conditions to its construction. Therefore, a useful to its construction. Therefore, a useful theory must fall theory must fall in betweenin between the ad hoc the ad hoc theory and tautology.theory and tautology.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20042525CH1-The Scope of Economic An
39、alysisCH1-The Scope of Economic AnalysisHypothesis, Ad Hoc Theory and Tautology.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20042626CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical Fallaciesn nLogically speaking, we must affirm the antecedent in the hypothesis in ord
40、er for the consequent to follow with logical necessity.If A is true, then B is true; A is true, therefore B is true.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20042727CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical FallaciesExample:If Jessie is a trained secretary,
41、 then she knows how to use a typewriter correctly; Jessie is a trained secretary, therefore she knows how to use a typewriter correctly.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20042828CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical Fallaciesn nOn the other hand,
42、 we can deny the truth of a hypothesis with reference to the facts: denying the consequent.If A is true, then B is true; B is NOT true, If A is true, then B is true; B is NOT true, therefore A is NOT true.therefore A is NOT true.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20042929CH1-The Scope
43、 of Economic AnalysisCH1-The Scope of Economic AnalysisLogical Fallaciesn nExample: If Jessie is a trained secretary, then she knows how to use a typewriter correctly; Jessie does not know how to use a typewriter correctly, therefore she is not a trained secretary.By Mr. LAU san-fat/ver 2004By Mr. L
44、AU san-fat/ver 20043030CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical Fallaciesn nFallacy 1: Affirming the consequentIf A is true, then B is true; if B is true, If A is true, then B is true; if B is true, therefore A is true.therefore A is true.Example:Example: If Jessie
45、 is a trained secretary, If Jessie is a trained secretary, then she knows how to use a typewriter then she knows how to use a typewriter correctly; Jessie knows how to use a correctly; Jessie knows how to use a typewriter correctly, therefore she is a typewriter correctly, therefore she is a trained
46、 secretary.trained secretary.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20043131CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical Fallaciesn nFallacy 2: Denying the antecedentIf A is true, then B is true; if A is not true, If A is true, then B is true; if A is not tr
47、ue, therefore B is not true.therefore B is not true.Example:Example: If Jessie is a trained secretary, If Jessie is a trained secretary, then she knows how to use a typewriter then she knows how to use a typewriter correctly; Jessie is not a trained correctly; Jessie is not a trained secretary, ther
48、efore she must not know secretary, therefore she must not know how to use a typewriter correctly.how to use a typewriter correctly.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20043232CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical Fallaciesn nWhen “A” is said to be
49、a necessary condition for “B”, it means that occurrence (or true) of “B” implies the occurrence (or true) of “A”, i.e. “If A is true, then B is true; B is true, therefore A is true”.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20043333CH1-The Scope of Economic AnalysisCH1-The Scope of Economic
50、AnalysisLogical Fallaciesn nWhile “A” is said to be a sufficient condition for “B”, it means that the occurrence (or true) of “A” implies the occurrence (or true) of “B”, i.e. “If A is true, then B is true; A is true, therefore B is true”. By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20043434CH
51、1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical Fallaciesn nWhen “A” is both a necessary and sufficient condition for “B”, it means that the occurrence of one implies the occurrence (or true) of the other, i.e. “If A is true, then B is true; A is true, therefore B is true”
52、and “B is true, therefore A is true”. By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20043535CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical Fallaciesn nEconomic proposition/hypothesis of “If A, then B” only posits that “A” is a sufficient condition for the occurrence
53、of “B”, i.e.“If A is true, then B is true; A is true, “If A is true, then B is true; A is true, therefore B is true.” (Affirming the therefore B is true.” (Affirming the antecedent but with no logical fallacy)antecedent but with no logical fallacy)By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20
54、043636CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical Fallaciesn nExample: If “If Jessie is a trained secretary, then she knows how to use a typewriter correctly; Jessie is a trained secretary, therefore she knows how to use a typewriter correctly.”By Mr. LAU san-fat/ver
55、2004By Mr. LAU san-fat/ver 20043737CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical Fallaciesn nBy confronting the hypothesis with observable facts, if Jessie is a trained secretary and good at using a typewriter, the hypothesis is said to be confirmed; if, however, she is
56、 a trained secretary but does NOT know how to use a typewriter, the hypothesis (though is free from logical fallacy) is said to be rejected (by facts).By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20043838CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical FallaciesIf A i
57、s true, then B is true; B is NOT If A is true, then B is true; B is NOT true, therefore A is NOT true.” (Denying true, therefore A is NOT true.” (Denying the consequent but with no logical the consequent but with no logical fallacy.)fallacy.)By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20043939
58、CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical Fallaciesn nExample: If Jessie is a trained secretary, then she knows how to use a typewriter correctly; Jessie does NOT know how to use correctly a typewriter, therefore she is NOT a trained secretary.By Mr. LAU san-fat/ver
59、 2004By Mr. LAU san-fat/ver 20044040CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisLogical Fallaciesn nBy confronting with observable facts, if Jessie does NOT know how to use a typewriter correctly and is NOT a trained secretary, the hypothesis is said to be confirmed; if, howe
60、ver, she does NOT know of using correctly a typewriter but is indeed a trained secretary the hypothesis is said to be rejected.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20044141CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisConstrained Maximizationn nEconomists assume in
61、dividuals make Economists assume individuals make choices subject to constraints (i.e. rules of choices subject to constraints (i.e. rules of the game) in order to maximize his gains (in the game) in order to maximize his gains (in terms of utility, income, wealth, rent or terms of utility, income,
62、wealth, rent or profit)profit)n nIn economics, individual choice and self-In economics, individual choice and self-interest are basic postulates used to explain interest are basic postulates used to explain an individuals maximizing behavior, subject an individuals maximizing behavior, subject to co
63、nstraints (available alternatives).to constraints (available alternatives). Ex 5:Ex 5: What are the major constraints? What are the major constraints?By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20044242CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisMajor ConstraintsConstra
64、intsConstraintsOne-man economyOne-man economySocietySocietyScarcity of Scarcity of resourcesresourcesYesYesYesYesProduction costProduction costYesYesYesYesTransaction Transaction costscostsNoNoYesYesProperty rightsProperty rightsNoNoYesYesBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20044343CH1
65、-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisTransaction Costsn nTransaction costs, in their broadest sense, encompass all those costs that cannot be conceived to exist in a Robinson Crusoe economy where there are no property rights, transactions or any kind of economic organizat
66、ion. By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20044444CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisTransaction Costsn nEconomic organization is defined as any Economic organization is defined as any production and exchange activities which production and exchange acti
67、vities which are not guided by the invisible hand of the are not guided by the invisible hand of the market, then all organization costs are market, then all organization costs are transaction costs.transaction costs.n nTransaction costs are actually institutional Transaction costs are actually inst
68、itutional costs, including the costs of organization costs, including the costs of organization and law enforcement.and law enforcement.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20044545CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisTransaction Costs as a Spectrum of Ins
69、titutional CostsBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20044646CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisTransaction Costs as a Spectrum of Institutional Costs1.1.information cost or searching costinformation cost or searching cost2.2.defining cost or delineating
70、 costdefining cost or delineating costn nthe cost incurred in setting the limits in the use the cost incurred in setting the limits in the use of property rights by legal or social institutionsof property rights by legal or social institutions3.3.measurement cost and pricing costmeasurement cost and
71、 pricing cost4.4.negotiating and contracting or exchange negotiating and contracting or exchange costscosts5.5.policing and enforcing costspolicing and enforcing costsBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20044747CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisTransac
72、tion Costs as a Spectrum of Institutional Costsn nIn a one-man economy, information costs In a one-man economy, information costs and policing costs (say of preventing wild and policing costs (say of preventing wild animals) would still exist. However, they animals) would still exist. However, they
73、are not regarded as transaction costs. are not regarded as transaction costs. They are regarded as the production costs They are regarded as the production costs incurred in maintaining the living standard.incurred in maintaining the living standard.n nAs it is almost impossible to distinguish As it
74、 is almost impossible to distinguish clearly between different types of costs, we clearly between different types of costs, we simply lump them together as transaction simply lump them together as transaction costs.costs.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20044848CH1-The Scope of Econ
75、omic AnalysisCH1-The Scope of Economic AnalysisWays of Reducing Transaction Costs1.1.the use of money as a common medium of the use of money as a common medium of exchangeexchange2.2.the existence of a marketplacethe existence of a marketplace3.3.the existence of middlementhe existence of middlemen4
76、.4.the upholding of private property rights by the upholding of private property rights by an effective governmentan effective government5.5.the existence of social custom and the existence of social custom and etiquetteetiquetteBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20044949CH1-The Scope
77、 of Economic AnalysisCH1-The Scope of Economic AnalysisScarcity, Choices & Opportunity Costn nScarcitywe want more than we havewe want more than we havea relative concepta relative concepta universal problema universal problemEx 6:Ex 6: Is shortage the same as scarcity? Is shortage the same as scarc
78、ity?By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20045050CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisScarcity, Choices & Opportunity CostScarcityScarcityShortageShortageDefinitionDefinitionWe want more than We want more than we have at zero Pwe have at zero PQd is larger
79、 than Qd is larger than Qs at a positive PQs at a positive PCauseCauseUnlimited wants Unlimited wants cannot satisfied cannot satisfied with limited with limited resourcesresourcesMarket price is Market price is controlled a level controlled a level below the below the equilibriumequilibriumBy Mr. L
80、AU san-fat/ver 2004By Mr. LAU san-fat/ver 20045151CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisScarcity, Choices & Opportunity CostScarcityScarcityShortageShortageCurable?Curable?NO way to eliminateNO way to eliminateBy allowing the By allowing the market price to market price
81、 to adjust to the adjust to the equilibrium level equilibrium level OthersOthersthe existence of the existence of “scarcity” does NOT “scarcity” does NOT imply the problem of imply the problem of “shortage” “shortage” the existence of the existence of “shortage” implies “shortage” implies the proble
82、m of the problem of “scarcity” “scarcity” By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20045252CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisScarcity, Choices & Opportunity CostPDS0QsQdQP=0PP1DS0QsQdQshortagescarcityBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 2004535
83、3CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisScarcity, Choices & Opportunity Costn nWith scarcity, we choose the option that incurs the lowest opportunity cost.n nOpportunity cost is defined as the highest-valued option necessarily forgone in making choice.n nWhenever we choo
84、se, opportunity cost arises.Ex 7:Ex 7: Does cost exist in Robinson Crusoe or one-man Does cost exist in Robinson Crusoe or one-maneconomy? economy? By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20045454CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisScarcity, Choices & Opport
85、unity Costn nWhenever there is competition, discrimination then follows.n nTo discriminate is just to separate the winners from the losers in a competition. By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20045555CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisScarcity, Choices
86、 & Opportunity Costn nThe criteria of competition (i.e. rules of the game or constraints) are not just important in deciding who are winners or losers, but also affect human behavior. A change in the competition criteria will definitely induce changes in human behavior. By Mr. LAU san-fat/ver 2004By
87、 Mr. LAU san-fat/ver 20045656CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisForms of Competitionn nPrice Competition:Goods & services are allocated to the Goods & services are allocated to the highest bidder under the price or highest bidder under the price or market system.mark
88、et system.Resources allocation under price Resources allocation under price competition is said to be competition is said to be efficientefficient because the product will be in the because the product will be in the hands of the highest-valued users.hands of the highest-valued users.By Mr. LAU san-
89、fat/ver 2004By Mr. LAU san-fat/ver 20045757CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisForms of Competitionn nNon-price Competition:by social customs & traditionsby social customs & traditionsby seniority or beautyby seniority or beautyby religion affiliationby religion affil
90、iationby academic performanceby academic performanceby violence or physical forceby violence or physical forceby queuing or first come first servedby queuing or first come first servedby lottery or ballot or rationing or luckby lottery or ballot or rationing or luckEx 7:Ex 7: Which form of competiti
91、on is more efficient? Which form of competition is more efficient?By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20045858CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisRemarks on Opportunity Costn nWe can predict whether a certain act will be pursued voluntarily or not by mea
92、ns of comparing its value (i.e. the maximum one is willing to pay) with its cost (i.e. the maximum one will have to sacrifice).n nIf its value exceeds cost, the act will be taken, vice versa.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20045959CH1-The Scope of Economic AnalysisCH1-The Scope of
93、Economic AnalysisRemarks on Opportunity Costn nBad consequences and the cost of a choice are NOT the same.Ex 8:Ex 8: If Peter & Mary are secondary teachers earning If Peter & Mary are secondary teachers earning $16000 per month, is their opportunity cost of quitting$16000 per month, is their opportu
94、nity cost of quittingthe job definitely the same? Explain.the job definitely the same? Explain.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20046060CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisRemarks on Opportunity Costn nCosts are not necessarily expressed in terms of m
95、oney or out-of-pocket cost.full cost = explicit cost + implicit costfull cost = explicit cost + implicit costexplicit cost = out-of-pocket cost = explicit cost = out-of-pocket cost = money costmoney costimplicit cost = income forgoneimplicit cost = income forgoneEx 9:Ex 9: Referring to Ex 8, will Pe
96、ter & Mary bear the Referring to Ex 8, will Peter & Mary bear the same opportunity cost when they decide to becomesame opportunity cost when they decide to becomea secondary teacher?a secondary teacher?By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20046161CH1-The Scope of Economic AnalysisCH1-Th
97、e Scope of Economic AnalysisRemarks on Opportunity Costn nNo choice, no cost.n nTime itself is not a cost, however, the highest-valued alternative use of that period is part of cost.n nWhen cost increases, it does NOT imply one is worse off.however, it means the value of the however, it means the va
98、lue of the highest-valued alternative use increases.highest-valued alternative use increases.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20046262CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisHistorical or Sunk Costn nHistorical or sunk costis simply a past expenditure (fo
99、r a past is simply a past expenditure (for a past act)act)is the original cost at which a firm is the original cost at which a firm acquired a factoracquired a factorEx 8:Ex 8: Distinguish sunk cost from opportunity cost. Distinguish sunk cost from opportunity cost.By Mr. LAU san-fat/ver 2004By Mr.
100、LAU san-fat/ver 20046363CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisSunk Cost and Opportunity CostSunk CostSunk CostOpportunity CostOpportunity CostAn accounting cost, An accounting cost, which is historical in which is historical in naturenatureNot an accounting Not an accou
101、nting costcostAn ex-post concept: An ex-post concept: post and backward-post and backward-lookinglookingAn ex-ante concept: An ex-ante concept: anticipated and anticipated and forward-lookingforward-lookingBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20046464CH1-The Scope of Economic AnalysisCH
102、1-The Scope of Economic AnalysisSunk Cost and Opportunity CostSunk CostSunk CostOpportunity CostOpportunity CostCannot be avoided, Cannot be avoided, i.e. irrecoverablei.e. irrecoverableCan be avoidCan be avoidDoes NOT affect Does NOT affect present or future present or future decision-makingdecisio
103、n-makingA determinant of A determinant of maximum decision-maximum decision-making: lower cost is making: lower cost is preferredpreferredBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20046565CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisFunctions of Invisible HandEx 9:Ex 9
104、: What is/are the function(s) of price? What is/are the function(s) of price?n nPrice transmits information for resources allocation. n nPrice provides incentives that motivate decision-makers to act because it rewards correct decisions and penalizes wrong ones.By Mr. LAU san-fat/ver 2004By Mr. LAU
105、san-fat/ver 20046666CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisFunctions of Invisible Handn nPrice distributes income as it determines who gain how much of what.n nThe above 3 functions are inter-related.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20046767CH1-The Scope
106、 of Economic AnalysisCH1-The Scope of Economic AnalysisProperty Rightsn nProperty rights to something are the entire set of peoples expectations regarding what they can and may do.n nProperty rights are the rules of the game, which serve to determine the winners and losers; when the rules of the gam
107、e change, the winners and losers will change.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20046868CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProperty Rightsn nIn a capitalist system, property rights exist on capital and consumer goods and on personal services. People co
108、mpete in the free market and the price mechanism determines resource allocation and income distribution.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20046969CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProperty Rightsn nIn a socialist system, income-generating goods are c
109、ontrolled by the government and are not transferable at market prices. Control of scarce and valuable resources is gained by access to political power rather than through the price mechanism.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20047070CH1-The Scope of Economic AnalysisCH1-The Scope of
110、Economic AnalysisPrivate Property Rightsn nA good or an asset is defined as private property, if and only if, within well-defined limits, its owner has three distinct sets of rights:the exclusive right to usethe exclusive right to usethe exclusive right to receive incomethe exclusive right to receiv
111、e incomethe transfer rightthe transfer rightBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20047171CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisPrivate Property Rightsn nThe exclusive right to use is the right to exclude other individuals so that the owner alone may decide
112、on the use of a good.n nThe exclusive right to receive income means that the owner has the exclusive right to extract income generated by the use of a good.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20047272CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisPrivate Property R
113、ightsn nThe transfer right means that the owner has the full right to transfer or alienate a property or resource to anyone he or she sees fit. It implies the right to enter into contracts with anyone and to choose their form. n nHowever, in practice, exclusivity and transferability of a good are fr
114、equently matters of degree.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20047373CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisGoods, Bads and Neutersn nA good is any desired entity or object; a A good is any desired entity or object; a good is something of which some is go
115、od is something of which some is preferred to more. preferred to more. n nA bad is any undesired entity or object; a A bad is any undesired entity or object; a bad is something of which less is preferred bad is something of which less is preferred to more.to more.n nA neuter is something which a per
116、son is A neuter is something which a person is indifferent to having, and does not care indifferent to having, and does not care whether he or she acquires more of it or whether he or she acquires more of it or less.less.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20047474CH1-The Scope of Econ
117、omic AnalysisCH1-The Scope of Economic AnalysisEconomic Goods and Free Goodsn nEconomic goods:a scarce good/made of scarce resourcesa scarce good/made of scarce resourcesa desired entity that we want more than a desired entity that we want more than we havewe havemore of it is preferred to lessmore
118、of it is preferred to lesscommanding a positive pricecommanding a positive priceQd is larger than Qs at zero priceQd is larger than Qs at zero priceBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20047575CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisEconomic Goods and Free Go
119、odsn nFree goods:a non-scarce good/made of non-scarce a non-scarce good/made of non-scarce resourcesresourcesa desired entity that we do not want a desired entity that we do not want more than we havemore than we havemore of it is not preferredmore of it is not preferredcommanding no pricecommanding
120、 no priceQd is smaller than Qs at zero priceQd is smaller than Qs at zero priceBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20047676CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nAssumptions behind PPC:a country produces onl
121、y two goodsa country produces only two goodsresources available are givenresources available are giventechnology is giventechnology is givenn nDefinition of PPC:The PPC shows all combinations of two The PPC shows all combinations of two goods that a country can produce, given goods that a country ca
122、n produce, given the resources and the best technology the resources and the best technology available.available.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20047777CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nDownward-sl
123、oping PPC shows concepts of Downward-sloping PPC shows concepts of scarcity, choice & opportunity costscarcity, choice & opportunity costGood Y0Good XABCDPPCBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20047878CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possib
124、ility Curve (PPC) & Efficiencyn nProduction points on the PPC, e.g. A, B, C & Production points on the PPC, e.g. A, B, C & D, yield production efficiencyD, yield production efficiencyGood Y0Good XABCDPPCBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20047979CH1-The Scope of Economic AnalysisCH1-T
125、he Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nPareto optimal/condition or efficiency means Pareto optimal/condition or efficiency means efficient use of resources.efficient use of resources.n nPareto condition refers to consumption Pareto condition refers to consumpt
126、ion efficiency and production efficiency.efficiency and production efficiency.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20048080CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nPareto condition is a state where it is no Par
127、eto condition is a state where it is no longer possible to change the allocation of longer possible to change the allocation of resources so that one individual will gain resources so that one individual will gain without loss to another.without loss to another.n nIt is a state that the wastage of r
128、esources is It is a state that the wastage of resources is kept at minimum.kept at minimum.By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20048181CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nThe PPC is concave to the origin.
129、Good Y0Good XABCDPPCBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20048282CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nConcaved PPC implies increasing opportunity costGood Y0Good XABCDPPC123423.554.5By Mr. LAU san-fat/ver 2
130、004By Mr. LAU san-fat/ver 20048383CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nLinear PPC implies constant opportunity costGood Y0Good XEFGHPPC12341243By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20048484CH1-The Scope of E
131、conomic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nArea outside the PPC, e.g. Point G: Area outside the PPC, e.g. Point G: unattainable areaunattainable areaGood Y0Good XABCDPPC123423.554.5GBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20048585CH1
132、-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nArea inside the PPC, e.g. Point U: inefficient Area inside the PPC, e.g. Point U: inefficient production areaproduction areaGood Y0Good XABCDPPC123423.554.5UBy Mr. LAU san-fat/ver 2004B
133、y Mr. LAU san-fat/ver 20048686CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nOutward-shifting of the PPC: economic Outward-shifting of the PPC: economic growthgrowthGood Y0Good XBPPC 142PPC 2By Mr. LAU san-fat/ver 2004By Mr. LAU
134、san-fat/ver 20048787CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nOutward-shifting of the PPC: economic Outward-shifting of the PPC: economic growthgrowthGood Y0Good XBPPC 1425PPC 2BBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/
135、ver 20048888CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & EfficiencyGood Y0Good XBPPC 142PPC 2n nOutward-shifting of the PPC: economic Outward-shifting of the PPC: economic growthgrowth4PPC 2BBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver
136、 20048989CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nInward-shifting of the PPC: economic Inward-shifting of the PPC: economic recessionrecessionGood Y0Good XBPPC 142PPC 2By Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20049
137、090CH1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nInward-shifting of the PPC: economic Inward-shifting of the PPC: economic recessionrecessionGood Y0Good XBPPC 142PPC 23BBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20049191C
138、H1-The Scope of Economic AnalysisCH1-The Scope of Economic AnalysisProduction Possibility Curve (PPC) & Efficiencyn nInward-shifting of the PPC: economic Inward-shifting of the PPC: economic recessionrecessionGood Y0Good XBPPC 142PPC 21BBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20049292CH1-T
139、he Scope of Economic AnalysisCH1-The Scope of Economic Analysisx+A2D5H8KbNfQiTlXo#s%v(y0B3E6I9LdOgRjVmYp!t&w-z1C4G7JaMePhTkWnZr$u*x+A2E5H8KcNfQiUlXp#s%v)y0B3F6IaLdOgSjVmYq!t&w-z1D4G7JbMePhTkWoZr$u(x+A2E5H9KcNfRiUlXp#s&v)y0C3F6IaLdPgSjVnYq!t*w-A1D4G8JbMeQhTlWoZr%u(x+B2E5H9KcOfRiUmXp#s&v)z0C3F7IaLdPgS
140、kVnYq$t*w-A1D5G8JbNeQhTlWo#r%u(y+B2E6H9LcOfRjUmXp!s&w)z0C4F7IaMdPhSkVnZq$t*x-A1D5G8KbNeQiTlWo#r%v(y+B3E6H9LcOgRjUmYp!s&w)z1C4F7JaMdPhSkWnZq$u*x-A2D5H8KbNfQiTlXo#s%v(y0B3E6I9LcOgRjVmYp!t&w)z1C4G7JaMePhSkWnZr$u*x+A2D5H8KcNfQiUlXo#s%v)y0B3F6I9LdOgSjVmYq!t&w-z1D4G7JbMePhTkWnZr$u(x+A2E5H8KcNfRiUlXp#s%v)y
141、0C3F6IaLdOgSjVnYq!t*w-z1D4G8JbMeQhTkWoZr%u(x+B2E5H9KcOfRiUmXp#s&v)z0C3F7IaLdPgSjVnYq$t*w-A1D4G8JbNeQhTlWoZr%u(y+B2E6H9KcOfRjUmXp!s&v)z0C4F7IaMdPgSkVnZq$t*x-A1D5G8KbNeQiTlWo#r%u(y+B3E6H9LcOfRjUmYp!s&w)z0C4F7JaMdPhSkVnZq$u*x-A2D5G8KbNfQiTlXo#r%v(y0B3E6I9LcOgRjVmYp!t&w)z1C4G7JaMePhSkWnZq$u*x+A2D5H8KbNf
142、QiUlXo#s%v(y0B3F6I9LdOgRjVmYq!t&w-z1C4G7JbMePhTkWnZr$u(x+A2E5H8KcNfRiUlXp#s%v)y0B3F6IaLdOgSjVmYq!t*w-z1D4G7JbMeQeQhTkWoZr$u(x+B2E5H9KcNfRiUmXp#s&v)y0C3F7IaLdPgSjVnYq$t*w-A1D4G8JbNeQhTlWoZr%u(y+B2E6H9KcOfRiUmXp!s&v)z0C3F7IaMdPgSkVnYq$t*x-A1D5G8JbNeQiTlWo#r%u(y+B3E6H9LcOfRjUmYp!s&w)z0C4F7JaMdPhSkVnZq$
143、t*x-A2D5G8KbNeQiTlXo#r%v(y+B3E6I9LcOgRjUmYp!t&w)z1C4F7JaMePhSkWnZq$u*x+A2D5H8KbNfQiUlXo#s%v(y0B3E6I9LdOgRjVmYp!t&w-z1C4G7JaMePhTkWnZr$u*x+A2E5H8KcNfQiUlXp#s%v)y0B3F6IaLdOgSjVmYq!t*w-z1D4G7JbMeQhTkWoZr$u(x+A2E5H9KcNfRiUlXp#s&v)y0C3F6IaLdPgSjVnYq!t*w-A1D4G8JbMeQhTlWoZr%u(x+B2E6H9KcOfRiUmXp!s&v)z0C3F7I
144、aLdPgSkVnYq$t*w-A1D5G8JbNeQhTlWo#r%u(y+B2E6H9LcOfRjUmXp!s&w)z0C4F7IaMdPhSkVnZq$t*x-A2D5G8KbNeQiTlXo#r%v(y+B3E6H9LcOgRjUmYp!s&w)z1C4F7JaMdPhSkWnZq$u*x-A2D5H8KbNfQiTlXo#s%v(y0B3E6I9LdOgRjVmYp!t&w-z1C4G7JaMePhSkWnZr$u*x+A2D5H8KcNfQiUlXo#s%v)y0B3F6I9LdOgSjVmYq!t&w-z1D4G7JbMePhTkWoZr$u(x+A2E5H9KcNfRiUlXp
145、#s%v)y0C3F6IaLdOgSjVnYq!t*w-z1D4G8JbMeQhTkWoZr%u(x+B2E5H9KcOfRiUmXp#s&v)z0C3F7IaLdPgSkVnYq$t*w-A1D5G8JbNeQhTlWoZr%u(y+B2E6H9KcOfRjUmXp!s&v)z0C4F7IaMdPgSkVnZq$t*x-A1D5G8KbNeQiTlWo#r%v(y+B3E6H9LcOgRjUmYp!s&w)z0C4F7JaMdPhSkVnZq$u*x-A2D5G8KbNfQiTlXo#r%v(y0B3E6I9LcOgRjVmYp!t&w)z1C4G7JaC4G7JaMePhSkWnZr$u*
146、x+A2D5H8KcNfQiUlXo#s%v)y0B3F6I9LdOgSjVmYq!t&w-z1D4G7JbMePhTkWoZr$u(x+A2E5H8KcNfRiUlXp#s%v)y0C3F6IaLdOgSjVnYq!t*w-z1D4G8JbMeQhTkWoZr%u(x+B2E5H9KcOfRiUmXp#s&v)z0C3F7IaLdPgSjVnYq$t*w-A1D4G8JbNeQhTlWoZr%u(y+B2E6H9KcOfRjUmXp!s&v)z0C4F7IaMdPgSkVnZq$t*x-A1D5G8KbNeQiTlWo#r%u(y+B3E6H9LcOfRjUmYp!s&w)z0C4F7JaM
147、dPhSkVnZq$u*x-A2D5G8KbNfQiTlXo#r%v(y0B3E6I9LcOgRjVmYp!t&w)z1C4G7JaMePhSkWnZq$u*x+A2D5H8KbNfQiUlXo#s%v(y0B3F6I9LdOgRjVmYq!t&w-z1C4G7JbMePhTkWnZr$u(x+A2E5H8KcNfRiUlXp#s%v)y0B3F6IaLdOgSjVmYq!t*w-z1D4G7JbMeQhTkWoZr$u(x+B2E5H9KcNfRiUmXp#s&v)y0C3F7IaLdPgSjVnYq$t*w-A1D4G8JbNeQhTlWoZr%u(x+B2E6H9KcOfRiUmXp!s
148、&v)z0C3F7IaMdPgSkVnYq$t*x-A1D5G8JbNeQiTlWo#r%u(y+B3E6H9LcOfRjUmYp!s&w)z0C4F7IaMdPhSkVnZq$t*x-A2D5G8KbNeQiTlXo#r%v(y+B3E6I9LcOgRjUmYp!t&w)z1C4F7JaMePhSkWnZq$u*x+A2D5H8KbNfQiTlXo#s%v(y0B3E6I9LdOgRjVmYp!t&w-z1C4G7JaMePhTkWnZr$u*x+A2E5H8KcNfQiUlXp#s%v)y0B3F6IaLdOgSjVmYq!t*w-z1D4G7JbMePhTkWoZr$u(x+A2E5H9
149、KcNfRiUlXp#s&v)y0C3F6IaLdPgSjVnYq!t*w-A1D4G8JbMeQhTlWoZr%u(x+B2E6H9KcOfRiUmXp#s&v)z0C3F7IaLdPgSkVnYq$t*w-A1D5G8JbNeQhTlWo#r%u(y+B2E2E6H9LcOfRjUmXp!s&w)z0C4F7IaMdPhSkVnZq$t*x-A2D5G8KbNeQiTlXo#r%v(y+B3E6H9LcOgRjUmYp!s&w)z1C4F7JaMdPhSkWnZq$u*x-A2D5H8KbNfQiTlXo#s%v(y0B3E6I9LdOgRjVmYp!t&w-z1C4G7JaMePhSkW
150、nZr$u*x+A2D5H8KcNfQiUlXo#s%v)y0B3F6I9LdOgSjVmYq!t&w-z1D4G7JbMePhTkWoZr$u(x+A2E5H9KcNfRiUlXp#s&v)y0C3F6IaLdOgSjVnYq!t*w-z1D4G8JbMeQhTkWoZr%u(x+B2E5H9KcOfRiUmXp#s&v)z0C3F7IaLdPgSkVnYq$t*w-A1D5G8JbNeQhTlWoZr%u(y+B2E6H9KcOfRjUmXp!s&v)z0C4F7IaMdPgSkVnZq$t*x-A1D5G8KbNeQiTlWo#r%v(y+B3E6H9LcOgRjUmYp!s&w)z0s
151、&w)z1C4F7JaMdPhSkWnZq$u*x-A2D5H8KbNfQiTlXo#s%v(y0B3E6I9LdOgRjVmYp!t&w)z1C4G7JaMePhSkWnZr$u*x+A2D5H8KcNfQiUlXo#s%v)y0B3F6I9LdOgSjVmYq!t&w-z1D4G7JbMePhTkWoZr$u(x+A2E5H8KcNfRiUlXp#s%v)y0C3F6IaLdOgSjVnYq!t*w-z1D4G8JbMeQhTkWoZr%u(x+B2E5H9KcOfRiUmXp#s&v)z0C3F7IaLdPgSjVnYq$t*w-A1D4G8JbNeQhTlWoZr%u(y+B2E6H9
152、KcOfRjUmXp!s&v)z0C4F7IaMdPgSkVnZq$t*x-A1D5G8KbNeQiTlWo#r%v(y+B3E6H9LcOfRjUmYp!s&w)z0C4F7JaMdPhSkVnZq$u*x-A2D5G8KbNfQiTlXo#r%v(y0B3E6I9LcOgRjVmYp!t&w)z1C4G7JaMePhSkWnZq$u*x+A2D5H8KbNfQiUlXo#s%v(y0B3F6I9LdOgRjVmYq!t&w-z1C4G7JbMePhTkWnZr$u(x+A2E5H8KcNfRiUlXp#s%v)y0C3F6IaLdOgSjVmYq!t*w-z1D4G7JbMeQhTkWoZ
153、r$u(x+B2E5H9KcNfRiUmXp#s&v)y0C3F7IaLdPgSjVnYq$t*w-A1D4G8JbNeQhTlWoZr%u(x+B2E6H9KcOfRiUmXp!s&v)z0C3F7IaMdPgSkVnYq$t*x-A1D5G8JbNeQiTlWo#r%u(y+B3E6H9LcOfRjUmYp!s&w)z0C4F7IaMdPhSkVnZq$t*x-A2D5G8KbNeQiTlXo#r%v(y+B3E6I9LcOgRjUmYp!t&w)z1C4F7JaMePhSkWnZq$u*x+A2D5H8KbNfQiUlXo#s%v(y0B3E6I9LdOgRjVmYp!t&w-z1C4G
154、7JaMePhTkWnZr$u*x+A2E5H8KcNfQiUlXp#s%v)y0B3F6IaLdOgSjVmYq!t*w-z1D4G7JbMePhTkWoZr$u(x+A2E5H9KcNfRiUlXp#s&v)y0C3F6IaLdPgSjVnYq!t*w-A1D4G8JbMeQhTlWoZr%u(x+B2E6H9KcOfRiUmXp#s&v)z0C3F3F7IaMdPgSkVnYq$t*w-A1D5G8JbNeQhTlWo#r%u(y+B2E6H9LcOfRjUmXp!s&w)z0C4F7IaMdPhSkVnZq$t*x-A2D5G8KbNeQiTlXo#r%v(y+B3E6H9LcOgRj
155、UmYp!s&w)z1C4F7JaMdPhSkWnZq$u*x-A2D5H8KbNfQiTlXo#s%v(y0B3E6I9LdOgRjVmYp!t&w-z1C4G7JaMePhTkWnZr$u*x+A2D5H8KcNfQiUlXo#s%v)y0B3F6I9LdOgSjVmYq!t&w-z1D4G7JbMePhTkWoZr$u(x+A2E5H9KcNfRiUlXp#s&v)y0C3F6IaLdOgSjVnYq!t*w-z1D4G8JbMeQhTkWoZr%u(x+B2E5H9KcOfRiUmXp#s&v)z0C3F7IaLdPgSkVnYq$t*w-A1D5G8JbNeQhTlWoZr%u(y+
156、B2E6H9KcOfRjUmXp!s&v)z0C4F7IaMdPgSkVnZq$t*x-A1D5G8KbNeQiTlWo#r%v(y+B3E6H9LcOgRjUmYp!s&w)z1C4F7JaMdPhSkVnZq$u*x-A2D5G8KbNfQiTlXo#r%v(y0B3E6I9LcOgRjVmYp!t&w)z1C4G7JaMePhSkWnZr$u*x+A2D5H8KcNfQiUlXo#s%v(y0B3F6I9LdOgRjVmYq!t&w-z1C4G7JbMePhTkWnZr$u(x+A2E5H8KcNfRiUlXp#s%v)y0C3F6IaLdOgSjVnYq!t*w-z1D4G8JbMeQ
157、hTkWoZr$u(x+B2E5H9KcNfRiUmXp#s&v)y0C3F7IaLdPgSjVnYq$t*w-A1D4G8JbNeQhTlWoZr%u(y+B2E6H9KcOfRjUmXp!s&v)z0C3F7IaMdPgSkVnYq$t*x-A1D5G8JbNeQiTlWo#r%u(y+B3E6H9LcOfRjUmYp!s&w)z0C4F7JaMdPhSkVnZq$u*x-A2D5G8KbNeQiTlXo#r%v(y+B3E6I9LcOgRjUmYp!t&w)z1C4F7JaMePhSkWnZq$u*x+A2D5H8KbNfQiUlXo#s%v(y0B3F6I9L9LdOgRjVmYq!t
158、&w-z1C4G7JbMePhTkWnZr$u*x+A2E5H8KcNfQiUlXp#s%v)y0B3F6IaLdOgSjVmYq!t*w-z1D4G7JbMeQhTkWoZr$u(x+B2E5H9KcNfRiUmXp#s&v)y0C3F6IaLdPgSjVnYq!t*w-A1D4G8JbMeQhTlWoZr%u(x+B2E6H9KcOfRiUmXp!s&v)z0C3F7IaMdPgSkVnYq$t*x-A1D5G8JbNeQiTlWo#r%u(y+B2E6H9LcOfRjUmXp!s&w)z0C4F7IaMdPhSkVnZq$t*x-A2D5G8KbNeQiTlXo#r%v(y+B3E6I9
159、LcOgRjUmYp!t&w)z1C4F7JaMdPhSkWnZq$u*x-A2D5H8KbNfQiTlXo#s%v(y0B3E6I9LdOgRjVmYp!t&w-z1C4G7JaMePhTkWnZr$u*x+A2E5H8KcNfQiUlXp#s%v)y0B3F6I9LdOgSjVmYq!t&w-z1D4G7JbMePhTkWoZr$u(x+A2E5H9KcNfRiUlXp#s&v)y0C3F6IaLdPgSjVnYq!t*w-A1D4G8JbMeQhTkWoZr%u(x+B2E5H9KcOfRiUmXp#s&v)z0C3F7IaLdPgSkVnYq$t*w-A1D5G8JbNeQhTlWo#
160、r%u(y+B2E6H9LcOfRjUmXp!s&v)z0C4F7IaMdPgSkVnZq$t*x-A1D5G8KbNeQiTlWo#r%v(y+B3E6H9LcOgRjUmYp!s&w)z1C4F7JaMdPhSkWnZq$u*x-A2D5H8KbNfQiTlXo#r%v(y0B3E6I9LcOgRjVmYp!t&w)z1C4G7JaMePhSkWnZr$u*x+A2D5H8KcNfQiUlXo#s%v)y0B3F3F6I9LdOgSjVmYq!t&w-z1D4G7JbMePhTkWoZr$u(x+A2E5H8KcNfRiUlXp#s%v)y0C3F6IaLdOgSjVnYq!t*w-z1D
161、4G8JbMeQhTkWoZr%u(x+B2E5H9KcOfRiUmXp#s&v)z0C3F7IaLdPgSjVnYq$t*w-A1D4G8JbNeQhTlWoZr%u(y+B2E6H9KcOfRjUmXp!s&v)z0C4F7IaMdPgSkVnZq$t*x-A1D5G8KbNeQiTlWo#r%u(y+B3E6H9LcOfRjUmYp!s&w)z0C4F7JaMdPhSkVnZq$u*x-A2D5G8KbNfQiTlXo#r%v(y0B3E6I9LcOgRjVmYp!t&w)z1C4G7JaMePhSkWnZq$u*x+A2D5H8KbNfQiUlXo#s%v(y0B3F6I9LdOgRj
162、VmYq!t&w-z1C4G7JbMePhTkWnZr$u(x+A2E5H8KcNfRiUlXp#s%v)y0B3F6IaLdOgSjVmYq!t*w-z1D4G7JbMeQhTkWoZr$u(x+B2E5H9KcNfRiUmXp#s&v)y0C3F7IaLdPgSjVnYq$t*w-A1D4G8JbMeQhTlWoZr%u(x+B2E6H9KcOfRiUmXp!s&v)z0C3F7IaMdPgSkVnYq$t*x-A1D5G8JbNeQiTlWo#r%u(y+B3E6H9LcOfRjUmYp!s&w)z0C4F7IaMdPhSkVnZq$t*x-A2D5G8KbNeQiTlXo#r%v(y+
163、B3E6I9LcOgRjUmYp!t&w)z1C4F7JaMePhSkWnZq$u*x+A2D5H8KbNfQiTlXo#s%v(y0B3E6I9LdOgRjVmYp!t&w-z1C4G7JaMePhTkWnZr$u*x+A2E5H8KcNfQiUlXp#s%v)y0B3F6IaLdOgSjVmYq!t*w-z1D4G7JbMePhTkWoZr$r$u(x+A2E5H9KcNfRiUlXp#s&v)y0C3F6IaLdPgSjVnYq!t*w-A1D4G8JbMeQhTlWoZr%u(x+B2E6H9KcOfRiUmXp!s&v)z0C3F7IaLdPgSkVnYq$t*w-A1D5G8JbN
164、eQhTlWo#r%u(y+B2E6H9LcOfRjUmXp!s&w)z0C4F7IaMdPhSkVnZq$t*x-A2D5G8KbNeQiTlXo#r%v(y+B3E6H9LcOgRjUmYp!s&w)z1C4F7JaMdPhSkWnZq$u*x-A2D5H8KbNfQiTlXo#s%v(y0B3E6I9LdOgRjVmYp!t&w-z1C4G7JaMePhSkWnZr$u*x+A2D5H8KcNfQiUlXo#s%v)y0B3F6I9LdOgSjVmYq!t&w-z1D4G7JbMePhTkWoZr$u(x+A2E5H9KcNfRiUlXp#s%v)y0C3F6IaLdOgSjVnYq!t
165、*w-z1D4G8JbMeQhTkWoZr%u(x+B2E5H9KcOfRiUmXp#s&v)z0C3F7IaLdPgSkVnYq$q$t*w-A1D5G8JbNeQhTlWo#r%u(y+B2E6H9KcOfRjUmXp!s&v)z0C4F7IaMdPgSkVnZq$t*x-A1D5G8KbNeQiTlWo#r%v(y+B3E6H9LcOgRjUmYp!s&w)z1C4F7JaMdPhSkWnZq$u*x-A2D5G8KbNfQiTlXo#r%v(y0B3E6I9LcOgRjVmYp!t&w)z1C4G7JaMePhSkWnZr$u*x+A2D5H8KcNfQiUlXo#s%v)y0B3F6
166、I9LdOgRjVmYq!t&w-z1C4G7JbMePhTkWnZr$u(x+A2E5H8KcNfRiUlXp#s%v)y0C3F6IaLdOgSjVnYq!t*w-z1D4G8JbMeQhTkWoZr$u(x+B2E5H9KcNfRiUmXp#s&v)y0C3F7IaLdPgSjVnYq$t*w-A1D4G8JbNeQhTlWoZr%u(y+B2E6H9KcOfRjUmXp!s&v)z0C4F7IaMdPgSkVnYq$t*x-A1D5G8JbNeQiTlWo#r%u(y+B3E6H9LcOfRjUmYp!s&w)z0C4F7JaMdPhSkVnZq$u*x-A2D5G8KbNfQiTlX
167、o#r%v(y+B3E6I9LcOgRjUmYp!t&w)z1C4F7JaMePhSkWnZq$u*x+A2D5H8KbNfQiUlXo#s%v(y0B3F6I9LdOgRjVmYq!t&w-z1C4G7JbMePhTkWnZr$u*x+A2E5H8KcNfQiUlXp#s%v)y0B3F6IaLdOgSjVmYq!t*w-z1D4G7JbMeQhTkWoZr$u(x+B2E5H9KcNfRiUmXp#s&v)y0C3F6IaLdPgSjVnYq!t*w-A1D4G8JbMeQhTlWoZr%u(x+B2E6H9KcKcOfRiUmXp!s&v)z0C3F7IaMdPgSkVnYq$t*x-A
168、1D5G8JbNeQiTlWo#r%u(y+B3E6H9LcOfRjUmXp!s&w)z0C4F7IaMdPhSkVnZq$t*x-A2D5G8KbNeQiTlXo#r%v(y+B3E6I9LcOgRjUmYp!t&w)z1C4F7JaMePhSkWnZq$u*x-A2D5H8KbNfQiTlXo#s%v(y0B3E6I9LdOgRjVmYp!t&w-z1C4G7JaMePhTkWnZr$u*x+A2E5H8KcNfQiUlXp#s%v)y0B3F6I9LdOgSjVmYq!t&w-z1D4G7JbMePhTkWoZr$u(x+A2E5H9KcNfRiUlXp#s&v)y0C3F6IaLdPg
169、SjVnYq!t*w-A1D4G8JbMeQhTlWoZr%u(x+B2E5H9KcOfRiUmXp#s&v)z0C3F7IaLdPgSkVnYq$t*w-A1D5G8JbNeQhTlWo#r%u(y+B2E6H9LcOfRjUmXp!s&w)z0C4F7IaMdPgSkVnZq$t*x-A1D5G8KbNeQiTlWo#r%v(y+B3E6H9LcOgRjUmYp!s&w)z1C4F7JaMdPhSkWnZq$u*x-A2D5H8KbNfQiTlXo#s%v(y0B3E6I9LcOgRjVmYp!t&w)z1C4G7JaMePhSkWnZr$u*x+A2D5H8KcNfQiUlXo#s%v)
170、y0B3F6I9LdOgSjVmYq!t&w-z1D4G7JbMePhTkWnZr$u(x+A2E5H8KcNfRiUlXp#s%v)y0C3F6IaLdOgSjVnYq!t*w-z1D4G8JbMeQhTkWoZr%u(x+B2E5E5H9KcOfRiUmXp#s&v)z0C3F7IaLdPgSkVnYq$t*w-A1D4G8JbNeQhTlWoZr%u(y+B2E6H9KcOfRjUmXp!s&v)z0C4F7IaMdPgSkVnZq$t*x-A1D5G8KbNeQiTlWo#r%v(y+B3E6H9LcOfRjUmYp!s&w)z0C4F7JaMdPhSkVnZq$u*x-A2D5G8K
171、bNfQiTlXo#r%v(y0B3E6I9LcOgRjVmYp!t&w)z1C4G7JaMePhSkWnZr$u*x+A2D5H8KbNfQiUlXo#s%v(y0B3F6I9LdOgRjVmYq!t&w-z1C4G7JbMePhTkWnZr$u(x+A2E5H8KcNfRiUlXp#s%v)y0C3F6IaLdOgSjVmYq!t*w-z1D4G7JbMeQhTkWoZr$u(x+B2E5H9KcNfRiUmXp#s&v)y0C3F7IaLdPgSjVnYq$t*w-A1D4G8JbNeQhTlWoZr%u(x+B2E6H9KcOfRiUmXp!s&v)z0C3F7IaMdPgSkVnYq$t*x-A1D5G8JbNeQiTlWo#r%u(y+B3E6H9LcOfRjUmYp!s&w)z0C4F7JaMdPhSkVnZq$t*x-A2D5G8KbNeQiTlXo#r%v(y+B3E6I9LcOgRjUmYp!t&w)z1C4F7JaMePhSkWnZq$u*x+A2D5H8KbNfQiUlXo#s%v(y0BBy Mr. LAU san-fat/ver 2004By Mr. LAU san-fat/ver 20049393CH1-The Scope of Economic AnalysisCH1-The Scope of Economic Analysis
