I have been blogging for so long and I have written so many articles that I don’t have. I suddenly found that I have forgotten all the professional knowledge I studied in university. It’s time to review it. After all, it cost me more than 20,000 tuition and expenses. Knowledge learned in 4 years! Can't let it run away secretly.
economics
Microeconomics
introduction
1. Research objects of economics
1. Economics: The social science of rational allocation of scarce resources.
Scarce resources: 1. Items are limited within a certain period of time; 2. Production conditions are also limited; 3. Human lives are also limited
2. Economics: solve the problem of rational allocation and full utilization of resources
Namely: Solve 1, what to produce, how much 2, how to produce 3, for whom 4, and when
3. The connection between micro and macro economics:
Complement each other, the micro is the basis of the macro, the macro is not a simple addition of the micro, and together constitute Western economics, with the other's research objects as the presumption
4. The difference
Different research objects
Solve different problems: micro-resource allocation problem-maximum individual benefit Macro-resource utilization problem-maximum social welfare
2. Research methods of economics
Empirical analysis method:
Normative analysis method:
Section 2 Equilibrium Price Theory
1. Demand
Demand: the number of goods that are willing and able to buy
Factors affecting demand: own prices, related commodity prices, consumer income, preferences, price expectations, number of people
Defense expenditure demand Influencing factors: national security environment, international political factors, military strategy
The law of demand is invalid for Giffen commodities, conspicuous commodities, speculative commodities
Changes in demand: unchanged prices, other changes, and changes in the quantity of goods demanded
Changes in demand: price changes, others unchanged,
3. Equilibrium price
The equilibrium price of commodities: formed by market demand and market supply
Market equilibrium: the quantity of goods provided is equal to the quantity of goods purchased
The number will increase:
The supply is fixed, and the demand increases, first the price will increase, and the increased demand will be met, so the quantity will also increase
Decrease in demand, lower prices, lower quantities
The demand is certain, the supply increases, the price decreases, and the price becomes cheaper. There are more people buying, so the quantity will increase.
Attacks drop, price heights, quantity decreases
The intersection of supply and demand is the equilibrium point of the market
When supply equals demand, the market price is the equilibrium price.
Supply: the amount of goods that the producer is willing and able to sell
4. Price mechanism and price policy
Price formation mechanism
Role: Regulate production, regulate consumption, an important means of macroeconomic regulation
Defects: Monopoly problem-inefficient resource allocation problem of incomplete information (product and labor market-information is biased towards sellers and capital market is biased towards buyers)
The market cannot solve the problem of externalities (positive and negative) The market cannot provide or provide a small amount of public goods (national defense highway) Agricultural products
Total price level of production factors
5. Demand elasticity and supply elasticity
Price elasticity of demand: how much the demand will change when the price changes by one percent
Cross-elasticity of demand: the price changes by 1%, the other negotiation changes how much
Income elasticity of demand: how much change in income is 1% and zero change in demand
Vendor sales revenue = PQ
Price elasticity of supply: Price elasticity is the percentage change in the quantity supplied by one percent of the price change. The degree of change in supply relative to price.
(5) Engel coefficient
The ratio of household food to total expenditure.
Section 3 Utility Theory
The impact of price changes and income changes on consumer equilibrium
Income effect bai
Income effect refers to the change in the actual income level of du caused by the price change of the commodity, and then the change in the demand for goods caused by the change in the actual income level.
For example, if a person's wages (nominal income) remain unchanged, when the price of goods drops, he can buy more goods, that is, real income increases and real purchasing power increases.
Substitution effect
Substitution effect is the substitution between the commodity and other commodities in the combination of commodities purchased by consumers due to changes in the nominal price of a commodity, which is called the substitution effect.
For example, if the price of pork rises and the price of beef remains unchanged, then the price of beef will be cheaper relative to the price of pork. Under other conditions unchanged, consumers may increase their consumption of beef.
For normal commodities, both the substitution effect and the income effect change in the opposite direction of price.
For low-end products, the substitution effect and price change in the opposite direction, and the income effect and price change in the same direction. The general income effect is smaller than the substitution effect.
For Giffen commodities, the substitution effect and price change in the opposite direction, and the income effect and price change in the same direction. The income effect is greater than the substitution effect.
1. Income effect
2. The substitution effect
3. The meaning of the Engel curve: consumption of each income level requires the quantity of goods.
The higher the income, the lower the food, the unchanged residential clothing, the other increase
Chapter 4 Production Theory
1. Reasonable input of a production factor
The law of diminishing marginal returns is a basic law of short-term production
Principle of profit maximization: marginal cost equals marginal revenue
174-110=64
64