1、TEN PRINCIPLES OF ECONOMICS
Principle #1: People Face Tradeoffs。
Principle #2: The Cost of Something Is What You Give Up to Get ItPrinciple #3: Rational People Think at the MarginPrinciple #4: People Respond to IncentivesPrinciple #5: Trade Can Make Everyone Better OffPrinciple #6: Markets Are Usually a Good Way to Organize Economic ActivityPrinciple #7: Governments Can Sometimes Improve Market OutcomesPrinciple #8: A Country’s Standard of Living Depends on Its Ability to Produce Goods and ServicesPrinciple #9: Prices Rise When the Government Prints Too Much MoneyPrinciple #10: Society Faces a Short-Run Tradeoff between Inflation and Unemployment the limited nature of society’s resources the study of how society manages its scarce resources. the property of society getting the most it can from its scarce resources. : the property of distributing economic prosperity fairly among the members of society. an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and services.
: a situation in which a market left on its own fails to allocate resources efficiently. -being of a bystander. the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices. the quantity of goods and services produced from each hour of a worker’s time. an increase in the overall level of prices in the economy.
a curve that shows the short-run tradeoff between inflation and unemployment.
fluctuations in economic activity, such as employment and production.
2、THINKING LIKE AN ECONOMIST a visual model of the economy that shows how dollars flow through markets among households and firms. graph that shows the combinations of output that the economy can possibly produce given the available factors of production and the available production technology. the study of how households and firms make decisions and howthey interact in markets. the study of economy-wide phenomena, including inflation, unemployment, and economic growth. claims that attempt to describe the world as it is. claims that attempt to prescribe how the world should be.
3、INTERDEPENDENCE AND THE GAINS FROM TRADE the comparison among producers of a good according to their productivity. whatever must be given up to obtain some item.
the comparison among producers of a good according to their opportunity cost. goods produced abroad and sold domestically. goods produced domestically and sold abroad.
4、THE MARKET FORCES OF SUPPLY AND DEMAND a group of buyers and sellers of a particular good or service. a market in which there are many buyers and many sellers so that each has a negligible impact on the market price.
: the amount of a good that buyers are willing and able to purchase. falls when the price of the good rises. a good for which, other things equal, an increase in income leads to an increase in demand. a good for which, other things equal, an increase in income leads to a decrease in demand. two goods for which an increase in the price of one good leads to an increase in the demand for the other. a decrease in the demand for the other. a table that shows the relationship between the price of a good and the quantity demanded.
: a graph of the relationship between the price of a good and the quantity demanded. the amount of a good that sellers are willing and able to sell. when the price of the good rises.
: a table that shows the relationship betweenthe price of a good and the quantity supplied. a graph of the relationship between the price of a good and the quantity supplied. a situation in which the price has reached the level where quantity supplied equals quantity demanded.
the price that balances quantity supplied and quantity demanded. the quantity supplied and the quantity demanded at the equilibrium price. : a situation in which quantity supplied is greater than quantity demanded. supply and demand for that good into balance.
5、 ELASTICITY AND ITS APPLICATION a measure of the responsiveness of quantity demanded or quantity supplied to one of its determinants. responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price.
the amount paid by buyers and received bysellers of a good, computed as the price of the good times thequantity sold. a measure of how much the quantity demanded of a good responds to a change in consumers’ income, computed as the percentage change in quantity demanded divided by the percentage change in income. a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in the quantity demanded of the first good divided by the percentage change in the price of the second good. a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the percentage change in quantity supplied divided by the percentage change in price.
6、SUPPLY, DEMAND, AND GOVERNMENT POLICIES a legal maximum on the price at which a good can be sold. a legal minimum on the price at which a good can be sold. the manner in which the burden of a tax is shared among participants in a market.
22、Measuring A Nation’s Income the study of how households and firms make decisions and how they interact in markets. the study of economy-wide phenomena including inflation, unemployment, and economic growththe market value of all final goods and services produced within a country in a given period of time. spending by households on goods and services, with the exception of purchases of new housing. spending on capital equipment, inventories, and structures, includinghousehold purchases of new housing. spending on goods and services by local, state, and federal governments. spending on domestically produced goods by foreigners (exports) minus spending on foreign goods by domestic residents (imports). the production of goods and services valued at current prices. the production of goods and services valued at constant prices. : a measure of the price level calculated as the ratio of nominal GDP to real GDP times 100.
23错误！未指定书签。 Measuring the Cost of Living a measure of the overall cost of the goods and services bought by a typical consumer. the percentage change in the price index from the preceding period. a measure of the cost of a basket of goods and services bought by firms. the automatic correction of a dollar amount for the effects of inflation by law or contract. the interest rate as usually reported without a correction for the effects of inflation. : the interest rate corrected for the effects of inflation.
24 、Production and Growth the amount of goods and services produced for each hour of a worker’s time. and services.
the knowledge and skills that workers acquire through education, training, and experience.
the inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits. society’s understanding of the best ways to produce goods and services. : the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases. the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich.
25、Saving, Investment, and the Financial Systemthe group of institutions in the economy that help to match oneperson’s saving with another person’s investment.
financial institutions through which savers can directly providefunds to borrowers. a certificate of indebtedness. a claim to partial ownership in a firm.
financial institutions through which savers can indirectly provide funds to borrowers. an institution that sells shares to the public and uses the proceeds to buy a portfolio of stocks and bonds. the total income in the economy that remains after paying for consumption and government purchases.
the income that households have left after paying for taxes and consumption.
the tax revenue that the government has left after paying for its spending. an excess of tax revenue over government spending. a shortfall of tax revenue from government spending.
the market in which those who want to save supply funds and those who want to borrow to invest demand funds. a decrease in investment that results from government borrowing.
26、Unemployment and Its Natural Rate
the total number of workers, including both the employed and the unemployed. the percentage of the labor force that is unemployed. the percentage of the adult population that is in the labor force. the normal rate of unemployment around which the unemployment rate fluctuates. the deviation of unemployment from its natural rate.
unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skills.
unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one. the process by which workers find appropriate jobs given their tastes and skills.
a government program that partially protects workers’ incomes when they become unemployed. : a worker association that bargains with employers over wages and working conditions the process by which unions and firms agree on the terms of employment. the organized withdrawal of labor from a firm by a union. above-equilibrium wages paid by firms in order to increase worker productivity.