Problems of the principles of economics, what problems are solved by the ten principles of economics

You forget about opportunity costs and comparative advantage in economics, there are things that can be made profitable by specialization and **. Economics is not like war, where you die or you die, it can be a win-win situation. Countries are likely to exploit their strengths and avoid their weaknesses.

I'll give you an explanation of what is in the paragraph"Suppose there are two countries, the United States and Japan, and two kinds of goods, food and automobiles, and assuming that both countries produce automobiles equally well, and that American workers and Japanese workers can each produce one automobile per month, compared to this, because the United States has more land and is better, it produces food advantageously; In the United States, each worker can produce 2 tons of food per month, while in Japan each worker can only produce 1 ton of food per month.

The principle of comparative advantage states that each good should be produced by a country with a lower opportunity cost of producing it. Since the opportunity cost of a car in the United States is 2 tons of food, but Japan only has 1 ton of food, so Japan has a comparative advantage in producing cars. Japan should produce more cars than it needs for its own use and export some cars to the United States, and similarly, the United States has a comparative advantage in producing food because the opportunity cost of 1 ton of food in Japan is a car, while the United States is just a car.

After looking at the above example, I think you should understand a little!

The landlord's great power means that a country has the ability to produce self-sufficient materials, and that's right.

But now is economic globalization, and every country is closely related to other countries.

If the country is still closed to the outside world, there will certainly be no greater development.

We must now take into account both international and natural development factors.

Many countries have oil, but they all import it from other countries, because they want to keep oil reserves.

Many countries import raw materials because they don't want to waste their own resources.

The big countries now all have such behavior, importing raw materials and exporting finished products.

First, it can maintain the right to restrain other small countries, and second, it will also benefit its own country.

If you look at the fact that the United States imposes economic sanctions on people at every turn, that is, through import and export means

Hey, didn't you notice that the U.S. economy is no longer in good shape now, and the subprime crisis hit hard, and then spread to the real economy, and imports are declining very badly.

So in fact, there is no contradiction, if the production is too small, and it is always imported, sooner or later there will be problems, even if it is as powerful as the United States, it cannot be avoided.

That's where the economics cow comes in.

I think that the increase in living standards is mainly due to the increase in gross domestic product.

At the same time, as we know, international specialization can bring greater benefits to countries, and comparative advantage allows developing countries to benefit from this slightly unfair international environment.

Most of what they import is cheap labor and industrial raw materials, which are processed into finished products and then exported to other countries. In this way, the production cost is reduced a lot, and the finished product is very expensive. Earned several times the profit.

Economics is never an exact science, it is constantly being revised.

The Ten Principles of Economics can solve many problems. For example, the principle of trade-offs that people face can help us find balance in many directions.

In terms of revenue distribution, if we spend more money on defense to defend our country from enemy invasion, we will spend less on personal goods that we can spend to improve our domestic standard of living. For example, we have a trade-off between a clean environment and a high income level. Laws that require companies to reduce pollution will increase the cost of producing goods and services.

Due to the increase in costs, the profits of the company have decreased, and the wages paid have decreased. So, while pollution control has benefited us in a cleaner environment and the resulting improvements in health, it has come at the cost of fewer revenue for business owners, workers, and consumers. Therefore, we need to coordinate the various objectives to achieve balanced development.

Expand the rough information of the jujube:

Ten Principles of Economics].

1) People are faced with trade-offs;

2) the cost of something is something that is given up in order to get it;

3) Rational people consider marginal quantities;

4) people will respond to incentives;

5) It can make everyone better;

6) The market is usually a good way to organize economic activity;

7) ** can sometimes improve market results;

8) a country's standard of living depends on its ability to produce goods and services;

9) when too much money is issued, prices rise;

10) Society faces a short-term alternating relationship between inflation and unemployment.

Rational people consider marginal quantities].

A rational person is a person who systematically and purposefully achieves his or her goals as much as possible. Rational people usually make decisions based on marginal benefits and marginal costs!

The independent variable adds one unit of marginal cost, and the amount of increase in the dependent variable is the marginal benefit. Profit is greatest when cost equals benefit.

The market is often a good way to organize economic activity

In the fifties and sixties, it was originally the state that managed all the economic operations, so that the scarce resources of the society could be allocated, commonly known as the era of eating a big pot of rice, everyone's labor was purposeful and regulated, so under such a system, it was easy to produce various problems, such as incomplete thinking, insufficient or too much production, etc., so the country that was once the first planned economy has given up such a system and replaced it with the development of a market economy (when many enterprises and families trade in the market for goods and services, the economy of allocating resources through their decentralized decision-making, usually through their decentralized decision-making).

When you are asked what your decision is about going to college, what is your cost? Most people will add tuition, living expenses, and accommodation costs together. But that money doesn't represent what you gave up at a university.

The first problem is that even if you don't go to school, you still need a place to stay and food. The second question is:

Four years of college is your biggest cost. When you are listening to lectures and writing ** in college, you can't work and make money. If an athlete in college drops out to become a professional athlete and earns millions a year, the cost of going to school is too great.

Can the marginal cost of paying more bring me a marginal benefit that is greater than the marginal cost? Rational people understand that many decisions in life are not black and white choices, but often in between. Therefore, rational people usually compare the marginal benefit and the marginal cost to make the key concepts of decision-making.

Rational people: People who systematically and purposefully do their best to achieve their goals (good people).

Marginal change: A small increment of an action plan.

Margial cost: The cost of producing an item or service without adding a single unit.

Margial revenue: The additional income for each additional unit of production of goods or services.

It should be 0

My view is that since the fisherman has the fish in his hands, he has to sell it as soon as possible, so he can't set the price arbitrarily. Otherwise, for every minute of delay, his fish will spoil, and after the fish has gone bad, the demand will continue to decrease.

In other words, his fish began to depreciate over time from the moment it came out of the water, and the demand for this fish continued to decrease, in this case, where is the **elasticity?

Let's take another example, in the summer, you have a popsicle in your hand and you want to sell it. It's hot, it's not warm, the popsicles are melting, do you say your popsicles are **elastic? I estimate that as long as someone says they want to buy, you will definitely close the deal immediately, and dare to bargain with the other party?

If it's **, it's different. Anyway, if you don't like it, you will hoard it, and it doesn't matter if you sell it when you have it in your mind.

The title here states that any kind of **, that is, all the fish he caught today, all sold, these fish are his supply, not more, because they will rot. And **is arbitrary**. Therefore, the amount of supply change is zero, resulting in zero elasticity of supply.

No matter how the fish change, the supply of fishmongers will never be the same (all fish). No waves. You can understand it this way.

So why do I have a burning desire for economics?

To be honest, in fact, learning this is for a better meal, that is, for the sake of it. Do you think I'm vulgar? Maybe I grew up in the ivory tower of school "carefree" and despised me today, haha.

I think in Zhihu, this high force, users are basically high-income communities, smart you must have guessed that I myself must have something to do with the economy after graduation to become so "vulgar", to avoid people scolding me for selling miserably here, I won't talk too much about my personal misfortune here, I can only say that there is something wrong with my body and I can't work like ordinary people to make money, so that's all.

I watched the open class of Tsinghua University at station b, and the professor's lectures in the first few classes were really refreshing!

Pity... The back is directly full of another teacher's lectures, although it is good, but it is not comparable to what Professor Qian said, and then I searched on the Internet to go to coursea to see Professor Lin's "Principles of Economics" open class, and found that this teacher likes to tell jokes and was suddenly a fan, and he is my own family. What is more interesting is that Mr. Lin always likes to tell us about the Chicago School and how good his teacher and his school (University of Chicago) are.

Say what you think: the students you want to teach are also the Chicago School!

This is really straightforward enough, without any cover-up!

And then... And then there is no more!

I'm talking about the open class that Professor Lin taught. After that, I went to Douban + Zhihu + Google to search for what economics books are most suitable for getting started, many people directly pushed Mankiw's "Principles of Economics" and the Douban score is super high, the wall crack recommends that you have the opportunity to read the original English version, which will definitely let you know why the master is called a master!

Choose. What do the principles of economics tell you? You have a constraint, you have a utility, and you want to maximize your utility. And when you want more of one thing, there can be less of the other.

Just like when you choose a girlfriend, that kind of good-looking, good-looking Then you have to choose between these conditions.

1.No rowing. Advantages: no pollution; Disadvantages: enterprises do not produce, the economy does not develop.

2.Limit the discharge, issue permits, and each enterprise buys and sells permits according to its own pollutant discharge. Advantages: gradually control the amount of pollutant discharge, but also to maintain the production and economic development of the enterprise; Disadvantages: There are still pollution emissions, which are difficult to alleviate in the short term.

3.Administrative restrictions on emissions, ** set standards for each factory, and penalties for exceeding the standards. Advantages: the degree of pollution is controllable, and the effect is obvious; Disadvantages: High cost of identification and inspection, difficult to supervise.

1.Consumer equilibrium is achieved on the condition that the marginal utility of goods for every dollar spent by consumers is equal.

Otherwise, rational consumers will adjust the purchase quantity of these two goods, reduce the purchase of the kind of goods with less marginal utility per dollar, and increase the purchase of the kind of goods with greater marginal utility per dollar, so as to achieve optimization and increase the total utility.

Just like if you buy fruit, apples and pears are both one yuan a piece, and the marginal utility of buying one more apple is 1, and the marginal utility of buying one more pear is 2, then you must buy more pears so that the marginal utility of the two is equal.

2.Two points on the indifference curve that are different can have different utility. That is, it is impossible for indifference curves to intersect.

The indifference curve is a line that indicates that the combination of different quantities of two items at all points on the line brings the same degree of satisfaction to the consumer.

It is used to indicate all combinations of two goods that have the same consumer preference. In other words, it represents all combinations of two goods that can bring the same level of utility or satisfaction to the consumer.

No two indifference curves can intersect. This is because if two indifference curves intersect, there will be a contradiction. As long as consumer preferences are transitive, indifference curves cannot intersect.

3.The marginal rate of substitution is the absolute value of the slope of the difference curve.

The marginal rate of substitution measures the proportion of substitution between two goods in order to maintain the same level of satisfaction as they move from one point on the indifference curve to another. The marginal substitution rate is a point concept, that is, it has different values at each point on the indifference curve. The marginal substitution rate at any point on the indifference curve is equal to the absolute value of the slope of the indifference curve at that point.

Hope it helps.

Ideas can be organized in four ways.

On the one hand, it is analyzed from the point of view of **intervention.

The issuance of education vouchers can effectively use local educational resources to serve school-age students and achieve effective allocation of resources. Education, as a quasi-public good, reduces the adverse factors caused by market failures in the case of ** intervention.

On the other hand, it is analyzed from the perspective of optimizing the structure of the labor force (combined with the analysis of structural unemployment in macroeconomics).

**Daxing Education's initiatives will certainly cultivate higher-quality talents for the local area to a certain extent, that is, to reserve high-quality labor for the future. The improvement of the quality of the labor force has played a certain role in reducing structural unemployment.

In addition, it is analyzed from the perspective that discrimination is also advantageous in certain circumstances. (Combined with microeconomics** analysis of discrimination content).

In the above materials, especially the right to education of poor students, the support for poor people, and the reduction or exemption of tuition fees, are essentially a kind of discrimination.

Again, from the perspective of transfer payment. The Education Bureau directly issues these three kinds of vouchers to the parents of students who are willing to attend the above three types of schools, and the parents of students choose their own schools and hand over the education vouchers to the school, which is essentially a kind of transfer payment, and directly gives tuition subsidies to students with poor family conditions.