Business Economics

《Business Economics》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。

1、IntroductiontoEconomics–ECO401VUUNIT-1Lesson1.1INTRODUCTIONTOECONOMICSWhatisEconomics?Economicsisnotanaturalscience,i.e.itisnotconcernedwithstudyingthephysicalworldlikechemistry,biology.Socialsciencesareconnectedwiththestudyofpeopleinsociety.Itisnotposs

2、ibletoconductlaboratoryexperiments,norisitpossibletofullyunraveltheprocessofhumandecision-making.“Economicsisthestudyofhowwethepeopleengageourselvesinproduction,distributionandconsumptionofgoodsandservicesinasociety.”NormativeeconomicsandPositiveEconomi

3、cs:Normativeeconomicsreferstovaluejudgments,e.g.what“ought”tobethegoals,ofpublicpolicy.Normativestatementscannotbetested.Positiveeconomics,bycontrast,istheanalysisoffactsandbehaviorinaneconomyor“thewaythingsare.”Positivestatementscanbetested.Wethepeople

4、:includesfirms,householdsandthegovernment.Goodsarethethingswhichareproducedtobesold.Servicesinvolvedoingsomethingforthecustomersbutnotproducinggoods.Factorsofproduction:Factorsofproductionareinputsintotheproductionprocess.Theyaretheresourcesneededtoprod

5、ucegoodsandservices.Thefactorsofproductionare:•Landincludesthelandusedforagricultureorindustrialpurposesaswellasnaturalresourcestakenfromaboveorbelowthesoil.•Capitalconsistsofdurableproducergoods(machines,plantsetc.)thatareinturnusedforproductionofother

6、goods.•Laborconsistsofthemanpowerusedintheprocessofproduction.•Entrepreneurshipincludesthemanagerialabilitiesthatapersonbringstotheorganization.Entrepreneurscanbeownersormanagersoffirms.Scarcitydoesnotmeanthatagoodisrare;scarcityexistsbecauseeconomicres

7、ourcesareunabletosupplyallthegoodsdemanded.Rationingisaprocessbywhichwelimitthesupplyoramountofsomeeconomicfactorwhichisscarcelyavailable.EconomicSystems:Afreemarket/capitalisteconomyisasysteminwhichthequestionsaboutwhattoproduce,howtoproduceandforwhomt

8、oproducearedecidedprimarilybythedemandandsupplyinteractionsinthemarket.Dictatorshipisasysteminwhicheconomicdecisionsaretakenbythedictatorwhichmaybeanindividualoragroupofselectedpeople.Acommandorplannedeconomyisamodeofeconomicorga