MICROECONOMICS MID-TERM REVISION

ÔN TẬP VI MÔ GIỮA KÌ

CHƯƠNG 1 TỔNG QUAN VỀ KINH TẾ HỌC (INTRODUCTION TO ECONOMICS)

• Vấn đề kinh tế (khan hiếm)? Các chủ thể trong nền kinh tế, loại thị trường, câu hỏi trong
nền kinh tế? (Economic problem? Scarcity? Economic agents, types of markets, three
basic questions?)
+ Scarcity : The condition in which our wants are greater than the resource available to
satisfy those wants.
+ Economic agents : Goverment , Firm , Household / Individual .
+ Types of market : Markets for goods and services
Markets for factors of productions
Financial markets
+ Three basic questions : What to produce ?
How to produce ?
Whom to produce ?
• Kinh tế học? (Economics?)
- Economics : is a social science discipline that helps people understand how the
economy works in general and how each employer can participate in the economy in
particular.
• Kinh tế vĩ mô? Ví dụ? (Macroeconomics?)
- Macroeconomics : is a sub-discipline of economics that studies the characteristics,
structure, and behavior of an economy as a whole.
- Example:
Example :
• Kinh tế vi mô? Ví dụ? (Microeconomics?)
- Microeconomics: is the study of how buyers and sellers make decisions and how they
interact in market.
- Example:
• Kinh tế học chuẩn tắc, kinh tế học thực chứng? (Positive economics, normative
economics?)
- Normative analysis (Kinh tế học chuẩn tắc):
+ Opinion-based analysis, the analysis of “What should be”.
+ Involves personal judgements or ideals.
+ Normative statement cannot be proven or disproven.
- Positive analysis ( Kinh tế học thực chứng)
+ Factual analysis, the analysis of “What is”.
+ There are no personal judgements involved.
+ Positive statement can be tested, can be proven or disproven.
• 3 cơ chế kinh tế? Thuyết “bàn tay vô hình” của Adam Smith (Three economic
systems? Adam Smith’s Invisible Hand?)
 Three economic systems
- Command economy (Nền kinh tế chỉ huy)
+ The government (or central authority) determines what, how, and for whom goods and
services are produced.
+ Also known as Planned Economy.
- Market economy (Nền kinh tế thị trường)
+ Businesses and consumers decide what they will produce and purchase and in what
quantities.
+ Decisions are made according to law of supply and demand.
+ Supply and demand of goods and services determine what is produced and the price
that will be charged.
+ Also called Free Market Economy.
- Mixed economy (Nền kinh tế hỗn hợp)
+ Combination of a market and a command economy.
+ Government takes care of people’s needs. Government regulates certain industries.
+ Marketplace takes care of people’s wants.
+ Most nations have a mixed economy.
 Adam Smith’s Invisible Hand
- Famous insight by Adam Smith in The Wealth of Nations (1776): Each of these
households and firms acts as if “led by an invisible hand” to promote general economic
well-being.
- The invisible hand works through the price system:
+ The interaction of buyers and sellers determines prices.
+ Each price reflects the good’s value to buyers and the cost of producing the good.
+ Price guide self-interested households and firms to make decisions that, in many cases,
maximize society’s economic well-being.
• Mô hình kinh tế? Trình bày các thành phần của mô hình? (Economic model?
Components of an economic model?)
- Economic Model: a simplified version of reality that allow us to observe, understand,
and make predictions about economic behaviors.
- Components of an economic model:
+ Theory
+ Assumption
+ Equation
+ Data
• Tại sao các nhà kinh tế thường mâu thuẫn khi tranh luận? (Why do economists
disagree?)
- They may have different opinions and value judgements, therefore, different normative
views about what policy should try to accomplish different assumption.
• Khi nào nhà kinh tế là nhà khoa học, khi nào là nhà làm chính sách? (When do
economists play the role as scientists? As policy advisors?)
- Scientists: try to explain the world.
- Policy advisors: try to improve it.
• 10 nguyên lý kinh tế? Lấy ví dụ cụ thể? (What are ten principles of Economics?)
- Principle 1: People Face Trade-offs
+ Example: “There ain’t no such thing as a free lunch.”
- Principle 2: The Cost of Something Is What You Give Up to Get It
+ Example: Giving up going out with your friends so that you can learn for your exam.
- Principle 3: Rational People Think at the Margin
Example: When you choose prepare for the tomorrow text , the problem now is which
you should prefer : Studying for 1 hour more or stop to play video games.
- Principle 4: People Respond to Incentives
+ Example: When the price of apples rises, people decide to eat fewer apples.
- Principle 5: Trade Can Make People Better Off
+ Example: Trade allows countries to specialize in what they do best and to enjoy a
greater variety of goods and services.
- Principle 6: Markets Are Usually a Good Way to Organize Economic Activity
+ Example: Smith’s great insight was that prices adjust to guide these individual buyers
and sellers to reach outcomes that, in many cases, maximize the well-being of society as
a whole.
- Principle 7: Governments Can Sometimes Improve Market Outcomes.
+ Example: The world’s best basketball player earns more than the world’s best chess
player because people are willing to pay more to watch basketball than chess. This
inequality may call for government intervention. In practice, many public policies aim to
achieve a more equal distribution of economic well-being.
- Principle 8: A Country’s Standard of Living Depends on Its Ability to Produce
Goods and Services
+ Example: In 2011, the average American had an income of about $48,000. In the same
year, the average Mexican earned about $9,000. Not surprisingly, this large variation in
average income is reflected in various measures of quality of life. Citizens of high-
income countries have more TV sets, more cars, better nutrition, better healthcare, and a
longer life expectancy than citizens of low-income countries.
- Principle 9: Prices Rise When the Government Prints Too Much Money
+ Example: You can buy 2 books with $5 in 2010, but you will pay $7 for 2 books in
2020.
- Principle 10: Society Faces a Short-Run Trade-off between Inflation and
Unemployment
 + Example: Loosing monetary policy: increase money supply by decrease lower interest
rates -> cost of borrowing money decreases -> increase spending -> increase demand ->
increase production -> decrease unemployment, increase inflation

CHƯƠNG 2 LÝ THUYẾT CUNG – CẦU (DEMAND AND SUPPLY)

Cầu (Demand) Cung (Supply)

- Phương trình (Function)
QD = aP +b (a<0)
- Hệ số góc  luật cầu (Slope -> Law of
demand)
a = QD / P
Law of demand:
+ Other things equal.
+ When the price of a good rises, the
quantity demanded of that good falls.
+ When the price falls, the quantity
demanded rises.
P -> QD
P -> QD
- Biểu cầu (Demand schedule)
Demand schedule: a table that shows the
relationship between the price of a good
and the quantity demanded.
- Cầu cá nhân và cầu thị trường
(Individual demand vs market demand)
+ Individual demand refers to the demand
for a good or a service by an individual (or
a household).
+ Market demand is the sum of the two
- Phương trình (Function)
QS = cP + d (c>0)
- Hệ số góc  luật cung (Slope -> Law of
supply)
c = Q S/ P
Law of supply:
+ Other things equal.
+ When the price of a good rises, the
quantity supplied of that good also rises.
+ When the price falls, the quantity
supply falls as well.
P -> QS
P -> QS
- Biểu cung (Supply schedule)
Supply schedule: a table that shows the
relationship between the price of a good
and the quantity supply.
- Cung cá nhân và cung thị trường
(Individual supply vs market supply)
+ Individual supply refers to the
supply for a good or a service by an
individual (or a household).
+ Market supply is the sum of the two
 individual demands.
- Phân biệt lượng cầu vs cầu (Quantity
demanded vs Demand)
+ Demand (D): The amount of a good or
service that buyers are willing to buy and
able to buy at all possible prices during a
certain time period, ceteris paribus.
+ Quantity demanded (QD): The amount
of a good or service that buyers are willing
to buy and able to buy at a price during a
certain time period, ceteris paribus.
 Di chuyển trên đường cầu
(Movement along demand curve)
Price changes -> Change in the quantity
demanded
P increases -> QD decreases
P decreases -> QD increases
o Dịch chuyển đường cầu (Shift in
demand curve)
- A non-price determinant of demand
changes -> change in demand = change in
the quantity demanded at all possible
prices (a shift in the D Curve to the right or
the left)
+ D curve shifts right: Demand increases.
+ D curve shifts left: Demand decreases.
o Các yếu tố tác động đến cầu ngoài giá
(Non-price determinants of demand)
Income (I):
I ↑ → QD↑
Normal goods
individual supply.
- Phân biệt lượng cung vs cung
(Quantity supplied vs Supply)
+ Supply (S): The quantity of goods and
services is willing to sell and able to sell
at all possible prices during a certain time
period, ceteris paribus.
+ Quantity supplied (Qs): The quantity
of goods and services that seller is
willing to sell and able to sell at a price
during a certain time period, ceteris
paribus.
o Di chuyển trên đường cung
(Movement along supply curve)
Price changed -> Change in the quantity
supplied
P increases -> Qs increases
P decreases -> Qs decreases
o Dịch chuyển đường cung (Shift in
supply curve)
- Any determinant of supply changes
make change in the quantity of
goods or services that the sellers
want to produce will make change
in supply.
+ S curve shifts right: increase in S
+ S curve shifts left: decrease in S
o Các yếu tố tác động đến cung ngoài
giá (Non-price determinants of supply)
- Input prices
I ↓ → QD↓
I ↓ → QD↑
Inferior goods
I ↑ → QD↓
Tastes (J): Change in tastes: changes the
demand
Expectations (E): about the future
- Expect an increase in income
+ Lead to an increase in today’s
demand
- Expect higher prices
+ Lead to an increase in today’s
demand
Number of buyers (N): Market demand
increases
Price of related goods:
- Substitutes (hàng hóa thay thế), two
goods
+ An increase in the price of one
+ Leads to an increase in the demand
for the other
- Complements (hàng hóa bổ sung),
two goods
+ An increase in the price of one
+ Lead to a decrease in the demand
for the other
+ Pi increases -> Cost increases ->
Profit decreases -> QS decreases at
all prices
 S curve shifts left
+ Pi decreases -> Cost decreases ->
Profit increases -> QS increases at
all prices
 S curve shifts right
- Technology
+ Improvement in technology -> C
decreases -> profit increases -> QS
increases at all prices
 S curve shifts right
- Expectations of sellers (ES)
+ Expectations of future prices
+ Prices are expected to rise in the
future -> producers store much of
their current production to take
advantage of higher future price
 Current supply decreases
- Number of sellers (NS)
+ More producers -> market supply
increases
- Government’s policies
+ Tax -> C increases -> Profit
decreases -> QS decreases
 S curve shifts left
+ Subsidies -> C decreases ->
Profit increases -> QS increases
 S curve shifts right
 CÂN BẰNG CUNG CẦU (MARKET EQUILIBRIUM)
1. Điều kiện cân bằng thị trường: Thị trường là quá trình giao dịch giữa bên mua
và bên bán để xác định giá giao dịch và lượng giao dịch (Market equilibrium
condition)
Market Equilibrium (E): QD = QS = QE
2. Trạng thái dư thừa; thiếu hụt (Surplus, shortage)
- Surplus: When quantity supplied is greater than quantity demanded
- Shortage: When quantity demanded is greater than quantity supplied
3. Thay đổi điểm cân bằng thị trường (Change in market equilibrium)
8 cases:
1. D increases – S unchanged => Pe increases & Qe increases
2. D decreases – S unchanged => Pe decreases & Qe increases
3. S increases – D unchanged => Pe decreases & Qe increases
4. S decreases – D unchanged => Pe increases & Qe increases
5. D increases – S increase => Pe ambiguous & Qe increases
6. D increases – S decrease => Pe increases & Qe ambiguous
7. D decreases – S increase => Pe decreases & Qe ambiguous
8. D increases – S decrease => Pe ambiguous & Qe decreases
4. Kiểm soát giá của chính phủ: Giá trần; giá sàn (Price controls of government:
Price ceiling, price floor)
- Price ceiling: a legal maximum on the price at which a good can be sold.
- Price floor: a legal minimum on the price at which a good can be sold.

CHƯƠNG 3 ĐỘ CO GIÃN (ELASTICITY OF DEMAND)

5. Độ co giãn của cầu theo giá (Price elasticity of demand)

a. Khái niệm (Definition)
Measures how much the quantity demanded of a good respond to a change
in one of its determinants.
 b. Công thức và cách tính (Formula)
Ed = %Delta Q / %Delta X = (Delta Q / Q) / (Delta X / X) = = (Delta Q /
Delta X) * (X / Q)
c. Phân loại và các trường hợp thực tế (Classifications and
determinants)
 Classifications
- Ed > 1: demand is elastic
+ A price decreases -> TR increases
- Ed < 1: demand is inelastic
+ A price increases -> TR increases
 Determinants
- Luxury/Necessity
- Number of substitutes
- Share in budget
- Time available to make the purchase

Ed <1 Ed >1

Necessities Luxuries
Few close substitutes Many close substitutes
A small portion of your income you give A large portion of your income you give
up to buy something up to buy something
In the short run, people don’t have In the long run, time allows people to find
enough time to find substitutes substitutes

d. Mối quan hệ giữa Ed và TR (Relationship between Ed and TR)

- Ed < 1: demand is inelastic

 P increases => TR increases

- Ed > 1: demand is elastic

 P decrease => TR increase

- Ed = 1: demand is unit elastic

 P changes => TR remains constant ( TR max )

e. Hai trường hợp đặc biệt của Ed (Two extreme cases of Ed)
 “Perfectly inelastic demand” (One extreme case)
- Price elasticity of demand = % change in Q / % change in P = 0
- D curve: Vertical
- Consumers’ price sensitivity: None
- Elasticity: 0
 “Perfectly elastic demand” (The other extreme)
- Price elasticity of demand = % change in Q / % change in P = infinity
- D curve: horizontal
- Consumers’ price sensitivity: extreme
- Elasticity: infinity
6. Độ co giãn của cầu theo thu nhập (Income elasticity of demand)
a. Khái niệm
- How much the quantity demanded of a good responds to a change in consumers’
income.
b. Công thức
- Ei = %ΔQd / %ΔI = (ΔQ/ΔI) x (I/Q)
c. Phân loại

- Ei < 0 (Negative): Inferior goods

- Ei > 0 (Positive): Normal goods

+ 0 < Ei <1: Necessity

+ Ei > 1: Luxury

7. Độ co giãn chéo của cầu (Cross-price elasticity of demand)

 a. Khái niệm
- How much the quantity demanded of one good responds to a change in the price of
another good.
b. Công thức
- EX,Y = %ΔQX / %ΔPY
c. Phân loại
- EX,Y >0: the goods are substitutes
- EX,Y <0: the goods are complements

CHƯƠNG 4 THỊ TRƯỜNG VÀ PHÚC LỢI (MARKET AND WELFARE)

8. Thị trường? CS và PS? (Market? Consumer surplus and producer surplus?)

 Market: a place where buyers and sellers come into direct or indirect contact to
exchange, buy and sell goods and services.
 Consumer surplus (CS): the difference between what consumers are willing to pay
and what they actually pay.
- Consumer surplus can be found in the area above the price and below the demand
curve.
- Consumer surplus can be calculated using the formula for the area of a triangle.
 Producer surplus (PS): the difference between the price received and the seller’s
cost.
- Producer surplus can be found in the area below the price and above the supply
curve.
- Producer surplus can be calculated using the formula for the area of a triangle.
9. Thuế của chính phủ: ảnh hưởng đến CS và PS; doanh thu thuế của chính
phủ và phần tổn thất vô ích của xã hội; người tiêu dùng chịu thuế; nhà sản
xuất chịu thuế. (Tax levied on buyers/sellers: CS, PS, tax revenue of
government, deadweight loss; the amount of tax that buyers have to pay, the
amount of tax that sellers have to pay)
- Tax on good levied on buyers
+ Demand curve shifts leftward: By the size of tax
 - Tax on good levied on sellers
+ Supply curve shifts leftward: By the size of tax
- The government’s tax revenue is the size of the tax times the amount of the good
sold.
- Deadweight loss: the fall in total surplus – the sum of consumer surplus, producer
surplus and tax revenue.
- When supply is more elastic than demand, consumers will pay more tax than
producers and vice versa.
- When there is a tax, a portion of the consumer and producer surplus goes to
government tax revenue and the deadweight loss.

CHƯƠNG 5 QUYẾT ĐỊNH LỰA CHỌN TIÊU DÙNG (THE THEORY OF

CONSUMER CHOICE)
10. Khái niệm: U; TU; MU (qui luật lợi ích cận biên giảm dần/quy luật lợi ích
tới hạn) (Utility, Total Utility, Marginal Utility, Principle of Diminishing
Marginal Utility)
- Utility (U): the satisfaction or pleasure that a consumer gets from the consumption
of goods and services.
- Total utility (TU): the total satisfaction or pleasure that a consumer gets from the
consumption of goods and services.
- Marginal utility (MU): measures additional satisfaction obtained from consuming
1 additional unit of goods or services.
- Principle of Diminishing Marginal: The marginal utility of a good or service
decreases as the quantity of the good increases, ceteris paribus. In other words, total
utility increases more and more slowly as the quantity consumed increases.
11. Đường đồng ích: khái niệm, hệ số góc (MRS); đặc điểm. (Indifference curve:
definition, slope (MRS), properties)
- Indifference curve:
+ Shows consumption bundles that give the consumer the same level of satisfaction.
+ Combinations of goods on the same curve: Same satisfaction.
 - Marginal Rate of Substitution (MRS): the rate at which a consumer is willing to
trade one good for another.
- MRS = slope of indifference curve = -MuX/MuY
- Four Properties of Indifference Curves
+ Higher indifference curves are preferred to lower ones.
+ Indifference curves are downward-sloping.
+ Indifference curves cannot cross.
+ Indifference curves are bowed inward
12. Đường ngân sách: khái niệm, hệ số góc; 3 trường hợp thay đổi (Budget line:
definition, slope, 3 types of change)
- Budget Constraint/Line: show the possible combinations of different goods that
consumer can buy given her income and the prices of the goods.
- Slope of Budget Line: (Y)’X = -PX/PY
- 3 types of change:
+ PX, PY = const, I changes
+ I, PY = const, PX changes
+ I, PX = const, PY changes
13. Điều kiện tối đa hóa lợi ích khi lựa chọn tiêu dùng (Condition for
maximizing utility/Optimization)
- Condition for maximizing utility
MUy/Py = MUx/Px
PX*X + PY*Y = I or Y = -(Px/Py)*X + I/Py
- Optimization
F is consumer’s optimum:
+ Point where indifference curve is tangent to the budget constraint
+ Best combination of goods available to the consumer
+ Slope of indifference curve: Equals slope of budget constraint
Exercise 1: Cho sản phẩm X là sản phẩm thị trường, có biểu cầu và biểu cung như sau. ĐVT:
1000 sản phẩm.
The market for good X has the following demand and supply schedules. Unit: 1000 products

Price (1000 VND) 50 70

Quantity demanded 180 120
Quantity supplied 100 200
a. Xác định giá và lượng cân bằng thị trường của hàng hóa X. Vẽ đồ thị.
b. Tính hệ số co giãn của cầu theo giá tại mức giá và lượng cân bằng. Nếu doanh nghiệp
tăng giá thì doanh thu tăng hay giảm, giải thích tại sao?
c. Tại giá thị trường P=30, tính thặng dư tiêu dùng, thặng dư sản xuất trong trường hợp
chính phủ trợ cấp phần thiếu hụt
d. Nếu chính phủ đánh thuế đơn vị t = 10 vào nhà sản xuất (thuế trực thu). Xác định:
14. CS và PS trước thuế.
15. Sau thuế tính: CS, PS, doanh thu thuế của chính phủ và tổn thất vô ích xã hội do
thuế trực thu gây ra.

a. What are the equilibrium price and quantity in the market? Drawing a graph.
b. What is the price elasticity of demand Ed at equilibrium price and quantity? An increase
in the price will cause sellers’ total revenue to increase or decrease?
c. At the market price of 30, what is consumer surplus and producer surplus if the
government deals with the shortage?
d. Assume that the government imposes a tax of 10/unit on the seller (thuế trực thu).
Calculate:
16. CS and PS without tax.
17. With tax: CS, PS, tax revenue and deadweight loss.
Exercise 2: A consumer has an income of 3,000,000 VND per month, saving 20% of the
income, and allocating the remaining income to two goods: food and entertainment, the price of
food is P(F) = 10,000 VND/unit, the price of entertainment is P(M) = 15,000 VND/unit.
Assume that the consumer has utility function: TU = 4F1/4M3/4 (F: the amount of food, M: the
amount of entertainment). How much of each good should the consumer purchase to maximize
his/her utility?
 Một người A có thu nhập 3.000.000 đồng, tiết kiệm 20%, phần còn lại dùng hết cho 2
hàng hóa lương thực và giải trí với giá tương ứng P(F) = 10.000 đ/đơn vị, P(M) = 15.000 đ/đơn
vị. Giả định rằng người A không bị giới hạn về thời gian và có hàm tổng lợi ích TU = 4F1/4M3/4
(F: đơn vị lương thực; M: đơn vị giải trí). Tìm F và M để tối đa hóa lợi ích?