What are the principles of economic common sense, and are there any inductions 40

Economics is the study of how scarce resources are managed. The Ten Principles of Economics are a summary of the central ideas of various fields of economic research, which are mainly reflected in three aspects:

1) How people make decisions.

Principle 1: People face trade-offs. People often have to give up another favorite thing in order to get one thing they love. To make a decision is to require homo economicus to make trade-offs between one goal and another.

Principle 2: The cost of something is to get what it gives up. As people face trade-offs, decisions are made by comparing the costs and benefits of alternative courses of action, i.e., opportunity costs.

Principle 3: Rational people consider marginal quantities. People usually consider marginal quantities to make optimal decisions. A rational decision-maker will only take an action if its marginal benefit outweighs its marginal cost.

Principle 4: People respond to incentives. Because people make decisions by comparing costs and benefits, when costs or benefits change, people's actions change. So, people will respond to incentives.

2) How people interact with each other.

Principle 5: It can make everyone's condition better. ** To enable countries to specialize in activities in which they have a comparative advantage and to enjoy a wide range of goods and services, thereby improving everyone's situation.

Principle 6: The market is usually a good way to organize economic activity. Businesses and households in the market have mutual and personal interests guiding their decision-making, and the market economy has in most cases achieved the results of maximizing social welfare.

Principle 7: Market results can sometimes be improved. Markets need protection, and when markets fail, markets cannot allocate resources efficiently, intervening in the economy can improve efficiency and promote equity.

and 3) how the economy as a whole works.

Principle 8: A country's standard of living depends on its ability to produce goods and services. The rate of growth of a country's production determines the rate of average income growth. In countries with high levels of productivity, people enjoy a higher standard of living.

Principle 9: When too much money is issued, prices rise. Inflation is the rise in the general level of prices in the economy, and the main culprit of most inflation is the growth of the amount of money.

Principle 10: Society faces a short-term trade-off between inflation and unemployment. When the amount of money in the economy increases, it can cause inflation and it can also reduce the level of unemployment in the short term.

The trade-off between inflation and unemployment is only short-term, and policymakers can choose the combination of inflation and unemployment that affects the economy.

Ten Principles of Economics:1People face trade-offs, 2

The cost of something is something that is given up in order to get it、3.Rational people consider marginal quantities, 4People will respond to incentives, 5

** can make everyone better, 6The market is often a good way to organize economic activity, 7** Sometimes it can improve market results, 8

A country's standard of living depends on its ability to produce goods and services, 9When too much money is issued, prices rise, 10Society faces a short-term alternating relationship between inflation and unemployment.

<>1. People face 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 activities;

7. Sometimes it can improve market results;

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

9. When too much currency is issued, prices rise;

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

1. Butterfly effect.

A butterfly in the Amazon rainforest of South America, with an occasional flap of its wings, can cause a tornado in Texas, USA, two weeks later.

The reason for this is that the movement of the butterfly's wings causes changes in the air system around it, and produces a weak air flow, and the generation of weak air flow will cause corresponding changes in the surrounding air or other systems, which causes a chain reaction, and eventually leads to great changes in other systems.

2. Labor-intensive enterprises and human resources.

In labor-intensive enterprises, the average labor equipment of each worker is not high, such as textile industry, tourism, service enterprises, food enterprises, daily necessities and other light industry enterprises and service enterprises.

Labor-intensive enterprises have a low organic composition of capital, a low amount of fixed assets occupied by laborers, and a large proportion of live labor consumption in the cost of products. Therefore, it has the characteristics of low investment, unit investment can absorb more labor, low technical operation requirements, and fast capital turnover.

Some developing countries with abundant labor resources but a shortage of funds and a low level of technological development have paid attention to the development of labor-intensive enterprises, which is conducive to giving full play to the advantages of labor, making up for the lack of capital and technical strength, accumulating construction funds, and speeding up economic construction.

3. Metabolism.

After humans and animals eat hail (food) from the outside world, they transform and synthesize their own substances through digestion and absorption. At the same time, the energy released during the transformation of food is stored, which is called assimilation.

Green plants use photosynthesis to convert substances such as water and carbon dioxide absorbed from the outside world into starch, tangerine and other substances, and store energy, which is also assimilation.

Alienation is the process of assimilation in which the organism's own substances are constantly decomposed and changed, and the stored energy is released for use in life activities, and at the same time, the substances that are not needed and cannot be used are excreted from the body.

4. A nail.

Lost a nail, broken an iron hoof; broke an iron hoof and broke a war horse; broke a war horse and wounded a knight; wounded a knight and lost a battle; Lost a battle, lost an empire.

5. Mulberry fish pond.

Mulberry fish pond is a comprehensive fish farming method of fish farming in the pond and mulberry in the pond. Starting from the mulberry planting, it ends in the production cycle of fish farming through silkworm raising, which constitutes a close relationship between mulberry, silkworm and fish, and forms a relatively complete energy flow system of mulberry planting, mulberry leaf silkworm raising, silkworm cocooning, silkworm sand, silkworm pupae, silk reeling wastewater fish farming, fish manure and other mud fertilizer mulberry.

In this system, silk is an intermediate product and no longer enters the material cycle. Fresh fish is the ultimate product, providing people with consumption. The quality of any production link in the system will also affect other production links.

There is a fishing proverb in the Pearl River Delta that "mulberry mao, silkworm strong, fish fat, pond fertilizer, good foundation, silkworm cocoon", which fully illustrates the connection between various links in the circular production process of mulberry fish pond.

Common economic principles in daily life are introduced as follows:

The first principle is that people face the problem of trade-offs. For example, when it comes to buying fruits, there are now three kinds of fruit available to us, one is an apple, one is a watermelon, and one is a banana, and we can only buy one fruit at a time. So if I buy apples, it means that I have to give up the opportunity to buy watermelons and bananas.

In the same way, if I choose to buy watermelon, I have to give up the opportunity to buy apples and bananas, and if I buy bananas, I have to give up the opportunity to buy watermelons and apples; Horse racing is also a well-known routine of trade-offs and trade-offs to maximize profits.

Principle two, measure the opportunity cost by the value of what is being given up. For example, the choice of going to college involves a large opportunity cost. If we don't go to college, we get a salary, multiplied by twelve times three, which is one of the opportunity costs that we give up in three years, and we also have to pay a certain amount of tuition fees to go to college, and this tuition fee is multiplied by three or dig, which is the real cost we pay.

Principle 3: Use the comparison of marginal cost and marginal benefit to make a decision. Many decisions in life involve making small incremental adjustments to existing action plans. Economists refer to these adjustments as marginal changes.

In many cases, one can make an optimal decision by considering marginal quantities. For example, the ** of the plane ticket was originally 200 yuan, but due to various factors, the tickets for this flight were not all sold out, and now the captain proposed to sell the ticket at 100 yuan.

Is this feasible? The answer, of course, is yes. If the ticket is sold for 100 yuan**, its marginal cost may be the drink or meal that the passenger drinks or eats on the plane, which is certainly less than 100.

But if you don't sell the tickets, you're going to lose a lot of tickets. Therefore, the trade-off is that the marginal benefit is greater than the marginal cost, and the rational salesperson will dispose of the ticket at a low price, rather than losing their value in vain.

Fourth, consumer preferences and expectations for the future affect consumption choices. Because people make decisions by comparing costs and benefits, when the costs or benefits of nucleus change, people's behavior changes. That is, people will respond to incentives.

For example, when apples are raised, consumers will eat more pears and less apples, because the cost of eating apples is high.

For orchard owners, planting and harvesting staff will be increased to increase yields, because the increase in apples can increase profits. In addition, when taxis are low, people may choose to take taxis, but after the price increases, people will choose lower buses.

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.

As a result of the increase in costs, business profits are reduced and wages paid are reduced. 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.

Extended Material: Ten Principles of Economics].

<>1. People face 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 activities;

7. Sometimes it can improve market results;

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

9. When too much currency 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).

1. The essence of socialism and the purpose of production: to liberate and develop the productive forces, eliminate exploitation, eliminate polarization, and achieve common prosperity; The purpose of production is to continuously meet the people's growing needs for material and cultural life.

2. Commodities are the unity of use value and value, use value is the material bearer of value, and things without use value have no value.

Principle 1: People face alternating relationshipsThe original sentence can be understood as "people face trade-offs" When people form a society, they face a variety of different trade-offs. Typical is the choice between "cannon and butter". Equally important in modern society is the trade-off between a clean environment and a high income level.

Recognizing that people face trade-offs does not tell us what decisions people will or should make. However, it is important to recognize the trade-offs in life because people can only make good decisions if they understand the choices they face.

Principle 2: The cost of something is something that is given up in order to get it The opportunity cost of something is what is given up in order to get it. When making any decision, such as whether or not to go to college, the decision-maker should recognize the opportunity cost that comes with every possible choice. In fact, decision-makers are usually aware of this.

Athletes of college age who can make millions of dollars if they drop out of school and pursue professional sports are keenly aware that the opportunity cost of going to college is extremely high. It's no surprise that they often decide that it's not worth the cost to reap the benefits of going to college.

Principle 3: Rational people consider marginal quantities "Marginal quantities" refer to the changes that occur in an economic variable under certain influencing factors. Economists use the term marginalchange to describe small incremental adjustments to an existing plan of action, which is an adjustment around the edges of what you do. Individuals and businesses will make better decisions by considering marginal quantities.

Moreover, a rational decision-maker will only take an action if its marginal benefits outweigh its marginal costs.

Principle 4: People Respond to Incentives Because people make decisions by comparing costs and benefits, when costs or benefits change, people's behavior also changes. This means that people will respond to incentives. However, policies can sometimes have an impact that is not obvious in advance.

When analyzing any kind of policy, we should consider not only the direct impact, but also the indirect impact that occurs through incentives. If policies change incentives, it will make people change their behavior.