rinciples of Economics
Character
Course Introduction
Why to learn？ What to learn? How to learn?
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Why to learn？
Economics is everywhere around you.
reduce pollution
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welfare system
2. The cost of something is what you give up to get it.
Decisions require comparing costs and benefits of alternatives. Q:what is the benefit and cost of going to study in the college?
Technology Firms Consumers Aggregate Supply and Demand Utility
Financial System and Fiscal Policy
Employment and Unemployment
Competition
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Production
How to learn?
Regular and punctual attending the classes is required.
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Recommended Books/Materials
1.高鸿业《西方经济学》,中国人民大学出版社 2.斯蒂格里茨《经济学》,中国人民大学出版社 3. [美] 萨缪尔森，诺德豪斯著《经济学》 萧琛等译．华夏出版社，1999，第16版 4.曼昆《经济学原理》第四版（中文版）,清华大 学出版社
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Recommended Websites:
(经济学家) (中国宏观经济信 息网) (人大经济论坛) (中国经济研究中心) (似乎有知识) Blog: (易宪容)
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3. Rational people think at the margin.
Marginal changes are small, incremental adjustments to an existing plan of action. People make decisions by comparing costs and benefits at the margin. Only if marginal benefit>marginal cost
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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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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 o f society.
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Economics
Economics is the study of how society manages its scarce resources.
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Some new branches of economics
国际经济学(International economics) 城市经济学(Urban economics） 农业经济学(agricultural economics) 网络经济学(internet economics) 爱情经济学(economics of love) 幸福经济学(economics of happiness) 美女经济学(economics of beauties) ………………
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Recommended Newspaper:
《21世纪经济报》 《经济观察报》
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Assessment
You will be assessed by the following ways: Attendances 10% Exercises 20% Group case study with presentations 20% Performance in class 10% Final exam 40%

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Schedule and contents
Week Chapter Topic
1-2
3-7 8-11 12-13 14-15
1
4-6 13.14.16 23-24 33
Ten Principles of Economics
Supply and Demand: How Markets Work Production and Cost/Game theory The Data of Macroeconomics (GDP & CPI) Aggregate Demand & Aggregate Supply
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What to learn?
selling and buying Producing decision-making
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It’s about individuals like you and me. It’s about households. It’s about companies, large and small. It’s about governments.
We will learn this course together by the follow ing ways: Instructor’s presentation Case discussions within groups Economics stories Students’ reading presentation
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Why to learn？
Economics can make you to be good entrepr eneurs. (P27) you can understand and forecast the govern ment policies. (rising of oil price; appreciatio n of RMB; raise deposit reserve ratio) You will have a better understanding about your lives. It is the basis of your professional courses.
Prices of stocks
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Economics is everywhere around you.
为什么打开冰箱时，冷藏室会亮，冷冻室却不会 亮？ 成本—效益对比 高档冰箱生产商Sub-Zero生产的Pro 48冰箱，不 仅在冷冻柜安了灯，甚至连每一层单独的冰格里 都安了灯。这种冰箱的售价是多少？14 450美元 。
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Cause: Resources are Scarce
The management of society’s resources is important because resources are scarce .
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The kinds of resources:
1. 2. 3. Free resources Scarce Resources Labors Capital Land
“经济学家的思想无论 对错，都比人们想象的 有力量。那些自以为自 己不受任何一种经济学 思想支配的人，其实可 能就是某个已故蹩脚经 济学家的思想俘虏。” ----Keynes
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Subprime crisis Financial crisis
Exchange rate
Prices of real estates
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Economics is everywhere around you.
为什么笔记本电脑能在任何国家的 供电标准下运作，其他大部分电器 却不能？
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Economics is everywhere around you.
为什么牛奶装在方盒子里卖，可乐却装在圆瓶子里 卖？ 为什么有些车的加油孔在司机一侧，有些车却在副 驾驶一侧？ 为什么有些品牌的冰激凌只卖小份装，有些品牌却 只卖大份装呢？ 为什么AA制使人们在餐馆花钱更多？ 为什么男女初婚年龄延后了？ 为什么住在农村地区的人比住在城里的人早结婚？
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Chap 1. Ten Principles of Economics
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1. People face tradeoffs.
Adage: 1.“There is no such thing as a free lunch!” 2. you can’t have your cake and eat it!
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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
Making decisions requires trading off one goal against another.