10 PRINCIPLES OF ECONOMICS

1.People Face Trade-off: scrace resources & give up when necessary

2. The cost of sth is what you give up to get it
3.Rational pp think at the margin
4. People respond to incentives (sth that induces a person to act)
5. Trade can make everyone better off
6.Markets are usually a good way to organize eco activities
7.Governments can sometimes improve market outcomes (?)
+we need government
+property rights
+market failure

Bàn tay vô hình của Adam Smith

Sự sụp đổ của Lehman Brothers
John Maynard Kenyes
Joseph Schumpeter
Thuế quan và hạn ngạch xuất khẩu/43
 CHAPTER 4: THE MARKET FORCE OF SUPPLY AND DEMAND
CHAPTER 7:
Property rights
w/o govt => lawless society
HOW much u shoud tax? (to raise the govt)
How great is the market?
OC of opening a coffe store: ur savings on bank
Willingness to save include ur investment
Excess profit?????
Buyer want to buy lowest
The buyers with lowest will to buy, seller with
A willing to pay 20, B willing to sell at 15 => shouldn’t cause B can sell it at 30=> make better deal
We gradually realize the quilibrium price
Nobody knows ur willing to pay/sell
Total surplus= consumer sur + pro sur
MARKET IS EFFICIENT:
1.highest bids win
2.lowesr costs win
3.max total products
Can any central enity do the same?
Why the govent places high taxes larger for the import goods?
CHAPTER 8
Inelastic => necessity => most consume by the poor
Raise to fix the govent, who should pay more => fair or unfair
INCOME TAX:
Who has elastic curve: the poor
CHAPTER 9
How international trade affect the welfare of imported countries?
International trade
A country that is a large
Tariff effects on the importing country’s consumers
Tariff effects on the importing country’s producers
Producers experience a loss in cost
Welfare of the country is the total of the gain and loss of consumer, producer, …
What are other benefits of international trade?
- Increased variety of goods
- Lower costs thr eco of scale
e.g. large supermarket & independent grocers
devide in 2 types:
-internal eco
-external eco