(精品)ch02TheEconomicProblemScarcityandChoice.ppt

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1、PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice HallPrepared by:Fernando Quijano&Shelly TefftCASE FAIR OSTERP R I N C I P L E S O FMACROECONOMICST E N T H E D I T I O N2 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hall3 o

2、f 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice HallCHAPTER OUTLINE2The EconomicThe EconomicProblem:ScarcityProblem:Scarcityand Choiceand ChoiceScarcity,Choice,and Opportunity CostScarcity and Choice in a One-Person EconomyScarcity and Choice in an Economy of T

3、wo or MoreThe Production Possibility FrontierThe Economic ProblemEconomic Systems and the Role of GovernmentCommand EconomiesLaissez-Faire Economies:The Free MarketMixed Systems,Markets,and GovernmentsLooking Ahead4 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prent

4、ice Hall FIGURE 2.1 The Three Basic QuestionsEvery society has some system or process that transforms its scarce resources into useful goods and services.In doing so,it must decide what gets produced,how it is produced,and to whom it is distributed.The primary resources that must be allocated are la

5、nd,labor,and capital.5 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hallcapital Things that are produced and then used in the production of other goods and services.factors of production(or factors)The inputs into the process of production.Another term for

6、resources.production The process that transforms scarce resources into useful goods and services.6 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hallinputs or resources Anything provided by nature or previous generations that can be used directly or indirect

7、ly to satisfy human wants.outputs Goods and services of value to households.7 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice HallNearly all the same basic decisions that characterize complex economies must also be made in a simple economy.Scarcity and Choice

8、in a One-Person EconomyScarcity,Choice,and Opportunity Cost8 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice HallThe concepts of constrained choice and scarcity are central to the discipline of economics.opportunity cost The best alternative that we give up,or

9、 forgo,when we make a choice or decision.Scarcity and Choice in a One-Person EconomyScarcity,Choice,and Opportunity CostOpportunity Cost9 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice HallThe growth of the frozen dinner entre market in the last 50 years is a

10、 good example of the role of opportunity costs in our lives.Many entrepreneurs find that the simple tools of economicslike the idea of opportunity costshelp them anticipate what products will be profitable for them to produce in the future.Frozen Foods and Opportunity CostsE C O N O M I C S I N P R

11、A C T I C E10 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Halltheory of comparative advantage Ricardos theory that specialization and free trade will benefit all trading parties,even those that may be“absolutely”more efficient producers.Scarcity and Choice

12、 in an Economy of Two or MoreScarcity,Choice,and Opportunity CostSpecialization,Exchange,and Comparative Advantage11 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hall FIGURE 2.2 Comparative Advantage and the Gains from Tradeand(b)shows how much output they

13、could produce in a month,assuming they wanted an equal number of logs and bushels.Colleen would split her time 50/50,devoting 15 days to each task and achieving total output of 150 logs and 150 bushels of food.Bill would spend 20 days cutting wood and 10 days gathering food.In this figure,(a)shows t

14、he number of logs and bushels of food that Colleen and Bill can produce for every day spent at the taskAs shown in(c)and(d),by specializing and trading,both Colleen and Bill will be better off.Going from(c)to(d),Colleen trades 100 logs to Bill in exchange for 140 bushels of food.Scarcity and Choice

15、in an Economy of Two or MoreScarcity,Choice,and Opportunity Cost12 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hallabsolute advantage A producer has an absolute advantage over another in the production of a good or service if he or she can produce that pro

16、duct using fewer parative advantage A producer has a comparative advantage over another in the production of a good or service if he or she can produce that product at a lower opportunity cost.Scarcity and Choice in an Economy of Two or MoreScarcity,Choice,and Opportunity CostSpecialization,Exchange

17、,and Comparative Advantage13 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hall FIGURE 2.3a Production Possibilities with No TradeThe figure in(a)shows all of the combinations of logs and bushels of food that Colleen can produce by herself.If she spends all

18、30 days each month on logs,she produces 300 logs and no food(point A).If she spends all 30 days on food,she produces 300 bushels of food and no logs(point B).If she spends 15 days on logs and 15 days on food,she produces 150 of each(point C).A Graphical Presentation of Comparative Advantage and Gain

19、s from TradeScarcity and Choice in an Economy of Two or MoreScarcity,Choice,and Opportunity Cost14 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hall FIGURE 2.3b Production Possibilities with No TradeThe figure in(b)shows all of the combinations of logs and

20、bushels of food that Bill can produce by himself.If he spends all 30 days each month on logs,he produces 120 logs and no food(point D).If he spends all 30 days on food,he produces 240 bushels of food and no logs(point E).If he spends 20 days on logs and 10 days on food,he produces 80 of each(point F

21、).A Graphical Presentation of Comparative Advantage and Gains from TradeScarcity and Choice in an Economy of Two or MoreScarcity,Choice,and Opportunity Cost15 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hall FIGURE 2.4 Colleen and Bill Gain from TradeBy sp

22、ecializing and engaging in trade,Colleen and Bill can move beyond their own production possibilities.If Bill spends all his time producing food,he will produce 240 bushels of food and no logs.If he can trade 140 of his bushels of food to Colleen for 100 logs,he will end up with 100 logs and 100 bush

23、els of food.The figure in(b)shows that he can move from point F to point F.If Colleen spends 27 days cutting logs and 3 days producing food,she will produce 270 logs and 30 bushels of food.If she can trade 100 of her logs to Bill for 140 bushels of food,she will end up with 170 logs and 170 bushels

24、of food.The figure in(a)shows that she can move from point C to point C.Scarcity and Choice in an Economy of Two or MoreScarcity,Choice,and Opportunity Cost16 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice HallWe trade off present and future benefits in small

25、 ways all the time.Scarcity and Choice in an Economy of Two or MoreScarcity,Choice,and Opportunity CostWeighing Present and Expected Future Costs and Benefits17 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hallconsumer goods Goods produced for present consu

26、mption.investment The process of using resources to produce new capital.Scarcity and Choice in an Economy of Two or MoreScarcity,Choice,and Opportunity CostCapital Goods and Consumer Goods18 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hallproduction possib

27、ility frontier(ppf)A graph that shows all the combinations of goods and services that can be produced if all of societys resources are used efficiently.The Production Possibility FrontierScarcity,Choice,and Opportunity Cost19 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishin

28、g as Prentice HallAll points below and to the left of the curve(the shaded area)represent combinations of capital and consumer goods that are possible for the society given the resources available and existing technology.Points above and to the right of the curve,such as point G,represent combinatio

29、ns that cannot be reached.If an economy were to end up at point A on the graph,it would be producing no consumer goods at all;all resources would be used for the production of capital.If an economy were to end up at point B,it would produce only consumer goods.The Production Possibility FrontierScar

30、city,Choice,and Opportunity Cost20 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice HallAlthough an economy may be operating with full employment of its land,labor,and capital resources,it may still be operating inside its ppf,at a point such as D.The economy c

31、ould be using those resources inefficiently.Periods of unemployment also correspond to points inside the ppf,such as point D.Moving onto the frontier from a point such as D means achieving full employment of resources.The Production Possibility FrontierScarcity,Choice,and Opportunity Cost21 of 41PAR

32、T I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hall FIGURE 2.5 Production Possibility FrontierThe ppf illustrates a number of economic concepts.One of the most important is opportunity cost.The opportunity cost of producing more capital goods is fewer consumer goods.

33、Moving from E to F,the number of capital goods increases from 550 to 800,but the number of consumer goods decreases from 1,300 to 1,100.The Production Possibility FrontierScarcity,Choice,and Opportunity Cost22 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Ha

34、llDuring economic downturns or recessions,industrial plants run at less than their total capacity.When there is unemployment of labor and capital,we are not producing all that we can.The Production Possibility FrontierScarcity,Choice,and Opportunity CostUnemployment23 of 41PART I Introduction to Eco

35、nomics 2012 Pearson Education,Inc.Publishing as Prentice HallWaste and mismanagement are the results of a firm operating below its potential.Sometimes inefficiency results from mismanagement of the economy instead of mismanagement of individual private firms.The Production Possibility FrontierScarci

36、ty,Choice,and Opportunity CostInefficiency24 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hall FIGURE 2.6 Inefficiency fromMisallocation of Land in FarmingSociety can end up inside its ppf at a point such as A by using its resources inefficiently.If,for exa

37、mple,Ohios climate and soil were best suited for corn production and those of Kansas were best suited for wheat production,a law forcing Kansas farmers to produce corn and Ohio farmers to produce wheat would result in less of both.In such a case,society might be at point A instead of point B.The Pro

38、duction Possibility FrontierScarcity,Choice,and Opportunity CostInefficiency25 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice HallTo be efficient,an economy must produce what people want.marginal rate of transformation(MRT)The slope of the production possibil

39、ity frontier(ppf).The Production Possibility FrontierScarcity,Choice,and Opportunity CostThe Efficient Mix of OutputNegative Slope and Opportunity Cost26 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice HallTABLE 2.1 Production Possibility Schedule for Total Co

40、rn and Wheat Production in Ohio and KansasPoint on ppfTotal Corn Production(Millions of Bushels per Year)TotalWheat Production(Millions of Bushels per Year)A700100B650200C510380D400500E300550 FIGURE 2.7 Corn and Wheat Production in Ohio and Kansas The ppf illustrates that the opportunity cost of cor

41、n production increases as we shift resources from wheat production to corn production.Moving from point E to D,we get an additional 100 million bushels of corn at a cost of 50 million bushels of wheat.Moving from point B to A,we get only 50 million bushels of corn at a cost of 100 million bushels of

42、 wheat.The cost per bushel of corn measured in lost wheat has increased.The Production Possibility FrontierScarcity,Choice,and Opportunity CostThe Law of Increasing Opportunity Cost27 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Halleconomic growth An incre

43、ase in the total output of an economy.It occurs when a society acquires new resources or when it learns to produce more using existing resources.The Production Possibility FrontierScarcity,Choice,and Opportunity CostEconomic Growth28 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.P

44、ublishing as Prentice HallTABLE 2.2 Increasing Productivity in Corn and Wheat Productionin the United States,19352009CornWheatYield per Acre(Bushels)Labor Hours per 100 BushelsYield per Acre(Bushels)Labor Hoursper 100 Bushels 19351939194519491955195919651969197519791981198519851990199019951998200120

45、0620072008200926.136.148.778.595.3107.2112.8120.6134.4138.2145.6152.8153.9164.91085320743NAaNAaNAaNAaNAaNAaNAaNAa13.216.922.327.531.336.938.038.143.243.542.340.644.944.36734171197NAaNAaNAaNAaNAa NAaNAaNAaa Data not available.The Production Possibility FrontierScarcity,Choice,and Opportunity CostEcon

46、omic Growth29 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hall FIGURE 2.8 Economic Growth Shifts the PPF Up and to the RightProductivity increases have enhanced the ability of the United States to produce both corn and wheat.As Table 2.2 shows,productivity

47、 increases were more dramatic for corn than for wheat.Thus,the shifts in the ppf were not parallel.Note:The ppf also shifts if the amount of land or labor in corn and wheat production changes.Although we emphasize productivity increases here,the actual shifts between years were due in part to land a

48、nd labor changes.The Production Possibility FrontierScarcity,Choice,and Opportunity CostEconomic Growth30 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice Hall FIGURE 2.9 Capital Goods and Growth in Poor and Rich CountriesRich countries find it easier than poor

49、 countries to devote resources to the production of capital,and the more resources that flow into capital production,the faster the rate of economic growth.Thus,the gap between poor and rich countries has grown over time.The Production Possibility FrontierScarcity,Choice,and Opportunity CostSources

50、of Growth and the Dilemma of Poor Countries31 of 41PART I Introduction to Economics 2012 Pearson Education,Inc.Publishing as Prentice HallIn all societies,for all people,resources are limited relative to peoples demands.In 1990,the World Bank defined the extremely poor people of the world as those e