🗊Презентация Principles of economics, third edition

Категория: Экономика и Финансы
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Principles of economics, third edition, слайд №1Principles of economics, third edition, слайд №2Principles of economics, third edition, слайд №3Principles of economics, third edition, слайд №4Principles of economics, third edition, слайд №5Principles of economics, third edition, слайд №6Principles of economics, third edition, слайд №7Principles of economics, third edition, слайд №8Principles of economics, third edition, слайд №9Principles of economics, third edition, слайд №10Principles of economics, third edition, слайд №11Principles of economics, third edition, слайд №12Principles of economics, third edition, слайд №13Principles of economics, third edition, слайд №14Principles of economics, third edition, слайд №15Principles of economics, third edition, слайд №16Principles of economics, third edition, слайд №17Principles of economics, third edition, слайд №18Principles of economics, third edition, слайд №19Principles of economics, third edition, слайд №20Principles of economics, third edition, слайд №21Principles of economics, third edition, слайд №22Principles of economics, third edition, слайд №23Principles of economics, third edition, слайд №24Principles of economics, third edition, слайд №25Principles of economics, third edition, слайд №26Principles of economics, third edition, слайд №27Principles of economics, third edition, слайд №28Principles of economics, third edition, слайд №29
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Principles of economics, third edition, слайд №1
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Principles of economics, third edition, слайд №2
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1 Ten Principles of Economics
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1 Ten Principles of Economics

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Economy. . . . . . The word economy comes from a Greek word for “one who manages a household.”
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Economy. . . . . . The word economy comes from a Greek word for “one who manages a household.”

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TEN PRINCIPLES OF ECONOMICS A household and an economy face many decisions: Who will work? What goods and how many of them should be produced? What resources should be used in production? At what price should the goods be sold?
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TEN PRINCIPLES OF ECONOMICS A household and an economy face many decisions: Who will work? What goods and how many of them should be produced? What resources should be used in production? At what price should the goods be sold?

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TEN PRINCIPLES OF ECONOMICS Society and Scarce Resources: The management of society’s resources is important because resources are scarce. Scarcity. . . means that society has limited resources and therefore cannot produce all the goods and services people wish to have.
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TEN PRINCIPLES OF ECONOMICS Society and Scarce Resources: The management of society’s resources is important because resources are scarce. Scarcity. . . means that society has limited resources and therefore cannot produce all the goods and services people wish to have.

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TEN PRINCIPLES OF ECONOMICS Economics is the study of how society manages its scarce resources.
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TEN PRINCIPLES OF ECONOMICS Economics is the study of how society manages its scarce resources.

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TEN PRINCIPLES OF ECONOMICS How people make decisions. People face tradeoffs. The cost of something is what you give up to get it. Rational people think at the margin. People respond to incentives.
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TEN PRINCIPLES OF ECONOMICS How people make decisions. People face tradeoffs. The cost of something is what you give up to get it. Rational people think at the margin. People respond to incentives.

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TEN PRINCIPLES OF ECONOMICS How people interact with each other. Trade can make everyone better off. Markets are usually a good way to organize economic activity. Governments can sometimes improve economic outcomes.
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TEN PRINCIPLES OF ECONOMICS How people interact with each other. Trade can make everyone better off. Markets are usually a good way to organize economic activity. Governments can sometimes improve economic outcomes.

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TEN PRINCIPLES OF ECONOMICS The forces and trends that affect how the economy as a whole works. The standard of living depends on a country’s production. Prices rise when the government prints too much money. Society faces a short-run tradeoff between inflation and unemployment.
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TEN PRINCIPLES OF ECONOMICS The forces and trends that affect how the economy as a whole works. The standard of living depends on a country’s production. Prices rise when the government prints too much money. Society faces a short-run tradeoff between inflation and unemployment.

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Principle #1: People Face Tradeoffs. “There is no such thing as a free lunch!”
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Principle #1: People Face Tradeoffs. “There is no such thing as a free lunch!”

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Principle #1: People Face Tradeoffs. To get one thing, we usually have to give up another thing. Guns v. butter Food v. clothing Leisure time v. work Efficiency v. equity
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Principle #1: People Face Tradeoffs. To get one thing, we usually have to give up another thing. Guns v. butter Food v. clothing Leisure time v. work Efficiency v. equity

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Principle #1: People Face Tradeoffs Efficiency v. Equity Efficiency means society gets the most that it can from its scarce resources. Equity means the benefits of those resources are distributed fairly among the members of society.
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Principle #1: People Face Tradeoffs Efficiency v. Equity Efficiency means society gets the most that it can from its scarce resources. Equity means the benefits of those resources are distributed fairly among the members of society.

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Principle #2: The Cost of Something Is What You Give Up to Get It. Decisions require comparing costs and benefits of alternatives. Whether to go to college or to work? Whether to study or go out on a date? Whether to go to class or sleep in? The opportunity cost of an item is what you give up to obtain that item.
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Principle #2: The Cost of Something Is What You Give Up to Get It. Decisions require comparing costs and benefits of alternatives. Whether to go to college or to work? Whether to study or go out on a date? Whether to go to class or sleep in? The opportunity cost of an item is what you give up to obtain that item.

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Principle #3: Rational People Think at the Margin. Marginal changes are small, incremental adjustments to an existing plan of action.
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Principle #3: Rational People Think at the Margin. Marginal changes are small, incremental adjustments to an existing plan of action.

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Principle #4: People Respond to Incentives. Marginal changes in costs or benefits motivate people to respond. The decision to choose one alternative over another occurs when that alternative’s marginal benefits exceed its marginal costs!
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Principle #4: People Respond to Incentives. Marginal changes in costs or benefits motivate people to respond. The decision to choose one alternative over another occurs when that alternative’s marginal benefits exceed its marginal costs!

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Principle #5: Trade Can Make Everyone Better Off. People gain from their ability to trade with one another. Competition results in gains from trading. Trade allows people to specialize in what they do best.
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Principle #5: Trade Can Make Everyone Better Off. People gain from their ability to trade with one another. Competition results in gains from trading. Trade allows people to specialize in what they do best.

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Principle #6: Markets Are Usually a Good Way to Organize Economic Activity. A market economy is an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services. Households decide what to buy and who to work for. Firms decide who to hire and what to produce.
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Principle #6: Markets Are Usually a Good Way to Organize Economic Activity. A market economy is an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services. Households decide what to buy and who to work for. Firms decide who to hire and what to produce.

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Principle #6: Markets Are Usually a Good Way to Organize Economic Activity. Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand.” Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions. As a result, prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole.
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Principle #6: Markets Are Usually a Good Way to Organize Economic Activity. Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand.” Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions. As a result, prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole.

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Principle #7: Governments Can Sometimes Improve Market Outcomes. Market failure occurs when the market fails to allocate resources efficiently. When the market fails (breaks down) government can intervene to promote efficiency and equity.
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Principle #7: Governments Can Sometimes Improve Market Outcomes. Market failure occurs when the market fails to allocate resources efficiently. When the market fails (breaks down) government can intervene to promote efficiency and equity.

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Principle #7: Governments Can Sometimes Improve Market Outcomes. Market failure may be caused by an externality, which is the impact of one person or firm’s actions on the well-being of a bystander. market power, which is the ability of a single person or firm to unduly influence market prices.
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Principle #7: Governments Can Sometimes Improve Market Outcomes. Market failure may be caused by an externality, which is the impact of one person or firm’s actions on the well-being of a bystander. market power, which is the ability of a single person or firm to unduly influence market prices.

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Principle #8: The Standard of Living Depends on a Country’s Production. Standard of living may be measured in different ways: By comparing personal incomes. By comparing the total market value of a nation’s production.
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Principle #8: The Standard of Living Depends on a Country’s Production. Standard of living may be measured in different ways: By comparing personal incomes. By comparing the total market value of a nation’s production.

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Principle #8: The Standard of Living Depends on a Country’s Production. Almost all variations in living standards are explained by differences in countries’ productivities. Productivity is the amount of goods and services produced from each hour of a worker’s time.
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Principle #8: The Standard of Living Depends on a Country’s Production. Almost all variations in living standards are explained by differences in countries’ productivities. Productivity is the amount of goods and services produced from each hour of a worker’s time.

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Principle #8: The Standard of Living Depends on a Country’s Production. Standard of living may be measured in different ways: By comparing personal incomes. By comparing the total market value of a nation’s production.
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Principle #8: The Standard of Living Depends on a Country’s Production. Standard of living may be measured in different ways: By comparing personal incomes. By comparing the total market value of a nation’s production.

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Principle #9: Prices Rise When the Government Prints Too Much Money. Inflation is an increase in the overall level of prices in the economy. One cause of inflation is the growth in the quantity of money. When the government creates large quantities of money, the value of the money falls.
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Principle #9: Prices Rise When the Government Prints Too Much Money. Inflation is an increase in the overall level of prices in the economy. One cause of inflation is the growth in the quantity of money. When the government creates large quantities of money, the value of the money falls.

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Principle #10: Society Faces a Short-run Tradeoff Between Inflation and Unemployment. The Phillips Curve illustrates the tradeoff between inflation and unemployment: Inflation  Unemployment It’s a short-run tradeoff!
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Principle #10: Society Faces a Short-run Tradeoff Between Inflation and Unemployment. The Phillips Curve illustrates the tradeoff between inflation and unemployment: Inflation  Unemployment It’s a short-run tradeoff!

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Summary When individuals make decisions, they face tradeoffs among alternative goals. The cost of any action is measured in terms of foregone opportunities. Rational people make decisions by comparing marginal costs and marginal benefits. People change their behavior in response to the incentives they face.
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Summary When individuals make decisions, they face tradeoffs among alternative goals. The cost of any action is measured in terms of foregone opportunities. Rational people make decisions by comparing marginal costs and marginal benefits. People change their behavior in response to the incentives they face.

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Summary Trade can be mutually beneficial. Markets are usually a good way of coordinating trade among people. Government can potentially improve market outcomes if there is some market failure or if the market outcome is inequitable.
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Summary Trade can be mutually beneficial. Markets are usually a good way of coordinating trade among people. Government can potentially improve market outcomes if there is some market failure or if the market outcome is inequitable.

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Summary Productivity is the ultimate source of living standards. Money growth is the ultimate source of inflation. Society faces a short-run tradeoff between inflation and unemployment.
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Summary Productivity is the ultimate source of living standards. Money growth is the ultimate source of inflation. Society faces a short-run tradeoff between inflation and unemployment.

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