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1、21/02/2011TheUnitStructureWeek1:coreideas,intuition:backbonedocument.BEA683Week2-6:fleshingoutofcoreideasintostandardterminology.EconomicsforManagers________________________________________________________________________________Week7-12:applyingtheterminolo
2、gyandideas.Week1:TheBareBonesofEconomicsStrategy:immediatedepth,followedbyrepetitionandincreasingbreadth.Thoroughlyunderstandingthecoreideasiskeytotherest.Goal:theminimumwewouldlikeyoutounderstandisthesetofcoreideasofandthe“wayofthinking”ineconomics.KEYPoint
3、-IntroductionEconomicsinaNutshell…WhatisEconomics?Thebasiceconomicproblem:•Economicsistheapplicationofrigorous,often•Alldecision-makers,i.e.individuals,firms,households,mathematical,thinkingtounderstandhowscarcegovernments,andevenwholeblocksofnations,wantres
4、ourcesarebestutilized.morethanthatispossible.•Economicstriestounderstandhowscarceresourcesare•Allhaveinfiniteneedsandonlyfiniteresources.Deeplyusedintherealworld.awareofthis,nearlyalleconomistswillaskofapolicyproposal:`whowillbenefitandwhowilllose?'.Economic
5、sinaNutshell….EconomicsinaNutshell….•Themaininsightof200yearsofeconomicsisthatwe•Theeconomicanalysisofapolicyproposaloftenboilsshouldnotunderestimatethedegreetowhichadecisiondowntoaskingsimplequestions:makerstrivestoincreasehisorhermaterialwelfare.°Whosemate
6、rialincentivesaregoingtochangebecauseofthisproposal?•WhilstnoeconomistbelievesthatmaterialwelfareistheWhilstnoeconomistbelievesthatmaterialwelfareisthe°Howwillthisaffectthebehaviourofactorsexplicitlystatedinonlythingdecisionmakerscareabout,virtuallyallthepol
7、icyproposalandalsothebehaviourofactorsnoteconomistsaredeeplyawareofthedevastationcausedmentioned?'.bypoliciesthatdonottakeintoaccountthatmaterial°Whowillbenefitandwhowillloose?welfareisapowerfulmotiveforallthosesubjecttoapolicy.121/02/2011EconomicsasMoralPhi
8、losophyEconomicsasMoralPhilosophyAshorthistoryofeconomicthought:Thisimplies:•250yearsago,economics,psychology,andsociologydidnotyet•Economicsisimplicitlyidealistic,i.e.it’sfocusisonexist.Theirco
