1.1 The basic economic problem.pptx

1.1 The basic economic problem

© Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute

© Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute

© Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute

© Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute

Human wants are unlimited but resources are scarce人的欲望是无限的，但资源是稀缺的

The basic economic problem 基本的经济问题

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© Brian Titley 2012: this may be reproduced for class use solely for the purchaser’s institute

The basic economic problem 基本的经济问题

Economics is the study of 经济学是研究

So what is the basic economic problem? 那么，什么是基本的经济问题？

Economics is the study of how resources are allocated to satisfy the unlimited wants and needs of individuals, governments, and firms in the economy. 经济学是研究如何分配资源，以满足经济中个人、政府和企业的无限需求和欲望

The basic economic problem is concerned with how best to allocate scarce resources in order to satisfy people’s unlimited needs and wants. 基本的经济问题在于如何最好地分配稀缺资源，以满足人们无限的需求和欲望。

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And for whom should they produce it.为谁生产。

How to produce it.如何生产。

What to produce.生产什么。

Government政府

Firms (business in the private sector)公司（私营部门的企业）

Individual and households.个人和家庭。

The basic economic problem 基本的经济问题

There are 3 main role players in the economy: They are called economic agents.经济中有三个主要参与者：他们被称为经济主体。

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Consumption 消费 Resource allocation therefore involves deciding how best to use scarce resources to satisfy as many needs and wants as possible. 因此，资源分配涉及决定如何最好地利用稀缺资源，以满足尽可能多的需求和欲望。

Certain goods are a necessity. They are essential. 某些商品是必需品。它们是必不可少的。 Certain goods are purely based on wants—things that we would like to have. We do not need them to survive. 某些商品纯粹基于欲望——我们想要拥有的东西。它们并非生存所必需。 We need to understand that goods are either a free good or an economic good. 我们需要明白，商品要么是免费商品，要么是经济商品。

These role players decide on what goods and services need to be produced.这些参与者决定需要生产哪些商品和服务。 Goods are physical items that can be produced.商品是可以生产的实物。 Services are non-physical items that can be provided which consumers need.服务是可以提供的非实物项目，消费者需要它们。

The basic economic problem

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• There is a limited amount of resources such as raw materials, machines, factories, and skilled workers. But there are a number of different ways in which they can be used. 资源是有限的，比如原材料、机器、工厂和熟练工人。但是，它们可以有多种不同的使用方式。
• Resource allocation therefore involves deciding how best to use scarce resources to satisfy as many needs and wants as possible. 因此，资源分配涉及决定如何最好地利用稀缺资源，以满足尽可能多的需求和欲望。

• Free good: No opportunity cost!!!!!! - There is no choice to be made in terms of deciding between two goods. There is no cost or sacrifice. 免费商品：没有机会成本!!!!!!——在决定两种商品之间时无需做出选择。没有成本或牺牲。
• Economic good: There is an opportunity cost!!!!! They are limited in supply. Scarce in relation to the demand for the product. 经济商品：有机会成本!!!!! 它们的供应是有限的。相对于产品的需求来说是稀缺的

The basic economic problem

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What do we need to make goods and services?我们需要什么来生产商品和服务？?

Production

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Rewards for Factors of Production 生产要素的报酬

Factors of production 生产 素

The reward for enterprises is called profit.企业家的报酬称为利润。

The reward for capital is interest.资本的报酬是利息。

Labor: The reward for labor is wage or salaries.劳动：劳动的报酬是工资或薪水。

Land: The reward for land is called rent.土地：土地的报酬称为租金。

Using inputs (resources) to make outputs (goods and services) to satisfy the needs and wants of consumers 使用投入（资源）来生产产出（商品和服务），以满足消费者的需求和欲望

Business know-how = enterprise商业知识 = 企业家才能

Human skills and effort = labour人力技能和劳动 = 劳动力

Man-made resources = capital人造资源 = 资本

Natural resources = land自然资源 = 土地

Factors of production 生产要素

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Ability to move/ Motion: Moving from one place to another移动能力/运动：从一个地方移动到另一个地方

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Mobility of Factors of Production生产要素的流动性

Factors of Production

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Entrepreneurs? 企业家？

Labor? 劳动？

Land? 土地？

Capital? 资本？

Piano?

Pencil?

How easy it is or difficult for a specific factor of production to be used to produce something else.某一特定生产要素用于生产其他东西的难易程度。

Mobility of Factors of Production 生产要素的流动性

Factors of Production

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The ability of a factor of production can be utilized for a different function.生产要素的能力可以用于不同的功能

Mobility of Factors of Production 生产要素的流动性

Factors of Production

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Family ties and commitments — People may not want to relocate due to family, friends, or children's schooling. 家庭纽带和承诺 — 人们可能因为家庭、朋友或孩子的上学问题而不愿搬迁。 Costs of living — The cost of living varies between locations, making relocation uneconomical for some. 生活成本 — 不同地区的生活成本不同，导致搬迁对某些人来说不经济。

Developing and training employees to improve their skill set improves labour occupational mobility (as workers can perform a greater range of jobs). 培养和培训员工以提高他们的技能可以改善劳动力的职业流动性（因为工人可以胜任更多种类的工作）。

Occupational Mobility 职业流动性 English: The ability of a factor of production, especially labor, to switch between different jobs or industries.中文: 生产要素（尤其是劳动力）在不同工作或行业之间转换的能力。

Geographical Mobility 地理流动性 The ability of a factor of production, such as labor or capital, to move from one location to another.中文: 生产要素（如劳动力或资本）从一个地点移动到另一个地点的能力。

Mobility of factors of production?

Factors of Production

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Weather: Floods, storms. 天气：洪水、风暴。

Improvement in education and health care. 教育和医疗的改善。

Net migration: More people move to a country, labor becomes cheaper. 净迁移：更多人移入某国，劳动力变得更便宜。

New technology: Produce more with less. Overall cost goes down. 新技术：用更少的资源生产更多。整体成本降低。

Government policies: Tax incentives or subsidies. 政府政策：税收优惠或补贴。

Changes in the cost of these factors of production: Minimum wage increases. 生产要素成本的变化：最低工资上涨。

What would change the quantity and quality of factors of production?什么会改变生产要素的数量和质量？

Factors of Production

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Should we conserve more natural resources?

How should a new business invest US$20 million?

What occupation will you choose when you finish your studies?

(Or, should the government cut taxes by US$250 million?)

How should the government spend US$250 million?

What would you buy with US$10?

… and what are the next best alternatives foregone?

Opportunity cost is the cost of choice

Opportunity cost

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• To calculate opportunity cost, you estimate the costs and benefits that every investment option could generate and then compare them to choose the most profitable investment. FO is the return on foregone option, while CO is the return on chosen option.
• 计算机会成本时，你需要估算每个投资选项可能产生的成本和收益，然后进行比较，选择最有利可图的投资。FO 是放弃选项的回报，CO 是选择选项的回报。

• Opportunity cost is the cost of the next best opportunity given up (foregone). 机会成本是放弃的下一个最佳机会的成本。
• Each decision has an opportunity cost. 每个决策都有机会成本。

Opportunity cost

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Government: Do we spend our money on education, roads, or healthcare? 政府：我们应该把钱花在教育、道路还是医疗上？

Producers: Competing business opportunities. Electric cars or petrol fuel cars. 生产者：竞争的商业机会。电动汽车或汽油汽车。

Workers: We tend to specialize in one thing. You become a doctor or an artist. You give up the chance to pursue another career. 工人：我们倾向于专注于一件事。你成为医生或艺术家，就放弃了追求其他职业的机会。

Consumers: Limited income - You choose to spend your money on one thing, you have to give up the alternative. 消费者：收入有限——你选择把钱花在一件事上，就必须放弃其他选择。

So why is opportunity cost important to us and how does it influence our decision making?那么，为什么机会成本对我们重要，且它如何影响我们的决策？

Opportunity cost

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Production possibility curves

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PPCs are therefore a useful way of showing the opportunity cost of producing more of one product in terms of how much of another must be given up. 因此，PPCs 是一种有用的方式，可以显示生产更多一种产品时需要放弃多少另一种产品的机会成本。

But, because resources are limited, producing more of one product means producing less of another. 但是，由于资源有限，生产更多一种产品意味着生产另一种产品会减少。

Resources are being used efficiently if they are producing their maximum output. 如果资源被用来生产最大产出，则表示资源被有效利用。

Production possibility curves (PPCs) show the maximum combined output of two or more products a firm or an entire economy can produce with its available resources. 生产可能性曲线（PPCs）显示了一个企业或整个经济体在其可用资源下可以生产的两种或更多产品的最大组合产出。

Production possibility curves

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Production possibility curves

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A firm producing cars and trucks一家生产汽车和卡车的公司 What is the opportunity cost of producing 20 more trucks? 生产多20辆卡车的机会成本是什么？

Production possibility curves

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Production possibility curves

An economy producing consumer goods and capital goods 一个生产消费品和资本品的经济体 What is the opportunity cost of producing 15 more tonnes of consumer goods? 生产多15吨消费品的机会成本是什么？

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Production possibility curves

Any move along the PPC means two things. 在 PPC 上的任何移动意味着两件事。 One, we are using all our resources efficiently, and 第一，我们正在有效利用所有资源，且 Two, moving from A-C-D-B will have an opportunity cost. 第二，从 A-C-D-B 移动会有机会成本。 To produce more of the one you need to produce less of the other.要生产更多一种产品，就需要减少另一种产品的生产。

Production possibility curves

How do we move from position (A, C, D, B) to position E or F? 我们如何从位置 (A, C, D, B) 移动到位置 E 或 F？ Investment in new technology – Improving technology can lead to more efficient production. 投资新技术 – 提高技术可以带来更高效的生产。 Increase in resources – Acquiring more resources, such as labor, capital, or raw materials, can shift the PPC outward. 增加资源 – 获取更多的资源，如劳动力、资本或原材料，可以使 PPC 向外移动。 Improvement in education and training – Enhancing the skills of workers can increase productivity, allowing more goods to be produced with the same resources. 改善教育和培训 – 提高工人技能可以增加生产力，在相同资源下生产更多商品。 Innovation and entrepreneurship – Encouraging innovation and new businesses can lead to the development of new products or more efficient production processes. 创新和企业家精神 – 鼓励创新和新企业可以推动新产品的发展或更高效的生产流程。 Better infrastructure – Improved infrastructure, such as transportation and communication systems, can enhance productivity. 改善基础设施 – 改善交通和通信系统等基础设施可以提高生产效率。

Production possibility curves

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Less resources - Factors of production 资源减少——生产要素 When the economy has fewer resources, such as reduced land, labor, capital, or enterprise, it cannot produce as much as before. This leads to a contraction in production possibilities, represented by an inward shift of the PPC. 当经济体拥有的资源减少时，如土地、劳动力、资本或企业减少，其生产能力就会下降。这会导致生产可能性的收缩，表现为 PPC 向内移动。 Quality of resources decreases 资源质量下降 If the quality of resources (like poorly skilled labor, outdated machinery, or degraded land) declines, the efficiency of production will decrease. This reduces the overall output the economy can produce, also leading to an inward shift of the PPC. 如果资源的质量下降（例如，劳动力技能不足、机器设备过时或土地退化），生产效率会降低。这将减少经济体的总产出，同样导致 PPC 向内移动。

How do we move from position (A, C, D, B) to position F?我们如何从位置 (A, C, D, B) 移动到位置 F？

Production possibility curves

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