Economics

Relationship Between Microeconomics and Macroeconomics
Different e.g.object of study ,method of analysis Contact Microeconomics is the foundation of macroeconomics Complementary Both of them can research the same economy phenomenon from different visual angle .
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An object of study
In short, Economics studies optimal allocation and full use of resources. In detail ：
Microeconomics What ,how,for whom Macroeconomics Resources are used fully or idly? How does inflation affect purchasing power? Can economy grow?
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Theory System of Economics

Two branches：Microeconomics and Macroeconomics
Microeconomics Another name Theory base Basic assumptions Founder Subject Key theory Major aim Individual Economics Macroeconomics Overall Economics
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An Object of Study
The keys to Economics ----Three Entities Three Behaviors
Consumer → Umax ( Utility ) Firm → πmax ( Profit ) Government → Wmax ( Welfare )
Adam Smith
Consumer ,Firm Theory of Equilibrium Price The maximum of benefit
J.M.Keynes
Overall economy Theory of National Income The maximum of welfare
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Current Economics (1930s —)
Representative : J.M.Keynes Work:General Theory of Employment ,Interest And Money Standpoint:Advocate that government interfere in economy .

Formation and Development of Current Economics
Neoclassical Economics (1870s—1930s)
Representative : A.Marshall Work:Economics Principle (1890) Standpoint: Equilibrium Price Theory, Laissez-faire
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The Methods of Studying Economics

The methods of studying Economics
Positive Analysis Normative Analysis
Positive Analysis objective describe the facts of economy what is Normative Analysis subjective involve value judgments what ought to be or what ought not to be
The Definition of Economics
Economics is the study of how societies use scarce resources to produce valuable commodities and distribute them among different people.
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Introduction
The End
Classical Economics (1650s—1870s)
Representative ： Adam Smith Work:The Wealth of Nations (1776) Standpoint:Laissez-faire economy
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An Object of Study
Neo-classical economics
Complete rationality ； Clear Market ；complete information
Keynesian economics
Market mechanism is imperfect ； Government can control economy
Introduction
An Object of Study The Methods of Studying Economics Theory System of Economics

中文版
Contents
An Object of Study

Formation and Development of Current Economics
Mercantilism (17C—18C )
Representative: A.Montchrestien Work: Political Economics Presenting To King and Queen Standpoint: Advocate that government interferes in economy .
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The Methods of Studying Economics

The other methods
Equilibrium Analysis Static state analysis and Dynamic state analysis Quality and Quantity Analysis Marginal Analysis Inductive method and Deductive Method
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An Object of Study

The Definition of Economics
The origin of Economics
Economics originates from objective scarcity and the need of choice that the scarcity leads to. Scarcity is the term used by economists to indicate that man's desire for a “thing” exceeds the amount of it that is freely available from Nature. Choice is the act of selecting among restricted alternatives. Contents of choice: what, how, for whom.