1、How people make decisions: 1. people face trade offs 2. The cost of something is what you give up to get it3. Rational people think at the margin4. People respond to incentivesHow people interact: 5.trade can make everyone better off6. Markets are usually a good way to organize economic activity7. G
2、overnment can sometimes improve market outcomesHow the economy as 8. A countrys standard of living depends on its ability to produce A whole works: goods and services9. Prices rise when the government prints too much money10. Society faces a short-run tradeoff between inflation and unemploymentKey c
3、oncepts:Ability-to-pay principle（税收的）能力支付原则: The idea that taxes should be levied on a person according to how well that person can shoulder the burdenAbsolute advantage 绝对优势 : The comparison among producers of a good according to their productivityAccounting profit 会计利润 : Total revenue minus total
4、explicit costAdverse selection 逆向选择: The tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed partyAgent 代理人 : A person who is performing an act for another person, called the principalAggregate-demand curve: a curve that shows the quantity of good
5、s and services that households, firms, and the government want to buy at each price levelAggregate risk: risk that affects all economic actors at onceAggregate-supply curve: a curve that shows the quantity of goods and services that firms choose to produce and sell at each price levelAppreciation: a
6、n increase in the value of a currency as measured by the amount of foreign currency it can buyArrows impossibility theorem 阿罗不可能定理 : A mathematical result showing that, under certain assumed conditions, there is no scheme for aggregating individual preferences into a valid set of social preferencesA
7、verage fixed cost 平均固定成本: Fixed costs divided by the quantity of outputAverage revenue 平均收益: Total revenue divided by the quantity soldAverage tax rate 平均税率 : Total taxes paid divided by total incomeAverage total cost 平均总成本: Total cost divided by the quantity of outputAverage variable cost 平均可变成本: V
8、ariable costs divided by the quantity of outputAutomatic stabilizers: changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate actionBalance trade: a situation in which exports equal importsBenefits principle 受
9、益原则: The idea that people should pay taxes based on the benefits they receive from government servicesBond: a certificate of indebtednessBudget constraint 预算约束: The limit on the consumption bundles that a consumer can affordBudget deficit 预算赤字: An excess of government spending over government receip
10、tsBudget surplus 预算盈余: An excess of government receipts over government spendingBusiness cycle 经济周期: Fluctuations in economic activity, such as employment and productionCapital 资产: The equipment and structures used to produce goods and servicesCapital flight: a large and sudden reduction in the dema
11、nd for assets located in a countryCartel 卡特尔: A group of firms acting in unisonCatch-up effect 后发效应: the property whereby countries that start off poor tend to grow more rapidly that countries that start off richCentral bank: an institution designed to oversee the banking system and regulate the qua
12、ntity of money in the economyCircular-flow diagram 循环流向图: A visual model of the economy that shows how dollars flow through markets among households and firmsClosed economy: an economy that does not interact with other economies in the worldCollective bargaining: the process by which unions and firm
13、s agree on the terms of employmentCommodity money: money that takes the form of a commodity with intrinsic valueCoase theorem 科斯定理: The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their ownCollusion 共谋:
14、 An agreement among firms in a market about quantities to produce or prices to chargeCommon resources 共同资源: Goods that are rival but not excludableComparative advantage 比较优势: The comparison among producers of a good according to their opportunity costCompensating differential 补偿性工资差别: A difference i
15、n wages that arises to offset the nonmonetary characteristics of different jobsCompetitive market 竞争性市场: A market with many buyers and sellers trading identical products so that each buyer and seller is a price takerComplements 互补性商品: Two goods for which an increase in the price of one leads to a de
16、crease in the demand for the otherCondorcet paradox: the failure of majority rule to produce transitive preferences for societyCompounding: the accumulation of a sum of money in, say, a bank account, where the interest earned remains in the account to earn additional interest in the futureConstant r
17、eturns to scale 规模报酬不变: The property whereby long-run average total cost stays the same as the quantity of outputConsumer price index (CPI): a measure of the overall cost of the goods and services bought by a typical consumerConsumer surplus 消费者剩余: A buyers willingness to pay minus the amount the bu
18、yer actually pays Consumption: spending by households on goods and services, with the exception of purchases of new housingCost 成本 : The value of everything a seller must give up producing a goodCost-benefit analysis 成本收益分析: A study that compares the costs and benefits to society of providing a publ
19、ic goodCrowding out: a decrease in investment that results from government borrowingCrowding-out effect: the offset in aggregate demand that results when expansionary fiscal policy raise the interest rate and thereby reduces investment spendingCross-price elasticity of demand 需求的交叉价格弹性: A measure of
20、 how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first good divided by the percentage change in the price of the second goodCurrency: the paper bills and coins in the hands of the publicCyclic
21、al unemployment: the deviation of unemployment from a market distortion, such as a taxDeadweight loss 无谓损失: The fall in total surplus that results from a market distortion, such as a taxDemand curve 需求曲线: A graph of the relationship between the price of a good and the quantity demandedDemand deposit
22、s: balances in bank accounts that depositors can access on demand by writing a checkDemand schedule 需求表: A table that shows the relationship between the price of a good and the quantity demandedDepreciation: a decrease in the value of a currency as measured by the amount of foreigh currency it can b
23、uyDepression: a severe recessionDiminishing marginal product 边际产品递减 : The property whereby the marginal product of an input declines as the quantity of the input increasesDiscrimination 歧视: The offering of different opportunities to similar individuals who differ only by race, ethnic group, sex, age
24、, or other personal characteristicsDiseconomies of scale 规模不经济: The property whereby long-run average total cost rises as the quantity of output increasesDiscount rate: the interest rate on the loans that the Fed makes to banksDiscouraged workers: individuals who would like to work but have given up
25、 looking for jobDiversification: the reduction of risk achieved by replacing a single risk with a large number of smaller unrelated risksDominant strategy 占优策略: A strategy that is best for a player in a game regardless of the strategies chosen by the other players Economic profit 经济利润: Total revenue
26、 minus total cost, including both explicit and implicit costsEconomics 经济学: The study of how society manages its scarce resourcesEconomies of scale 规模经济: The property whereby long-run average total cost falls as the quantity of output increasesEfficiency 效率: The property of society getting the most
27、it can from its scarce resourcesEfficiency wages 效率工资: Above-equilibrium wages paid by firms in order to increase worker productivityEfficient scale: the quantity of output that minimizes average total costElasticity: a measure of the responsiveness of quantity demanded or quantity supplied to one o
28、f its determinantsEquilibrium: a situation in which the price has reached the level where quantity supplied equals quantity demandedEquilibrium price: the price that balances quantity supplied and quantity demandedEquilibrium quantity: the quantity supplied and the quantity demanded at the equilibri
29、um priceEquity: the property of distributing economic prosperity fairly among the members of societyExcludability: the property of a good whereby a person can be prevented from using itExplicit costs: input costs that require an outlay of money by the firmExport: goods produced domestically and sold
30、 abroadExternality: the uncompensated impact of one persons actions on the wellbeing of a bystanderFactors of production: the inputs used to produce goods and servicesFederal reserve (Fed) : the central bank of the united statesFiat money: money without intrinsic value that is used as money because
31、of government decreeFinance: the field that studies how people make decisions regarding the allocation of resources over time and the handling of riskFinancial intermediaries: financial institutions through which savers can indirectly provide funds to borrowersFinancial markets: financial institutio
32、ns through which savers can directly provide funds to borrowersFinancial system: the group of institutions in the economy that help to match one persons saving with another persons investmentFisher effect: the one-for-one adjustment of the nominal interest rate to the inflation rateFractional-reserv
33、e banking: a banking system in which banks hold only a fraction of deposits as reservesFrictional unemployment: unemployment that results because it takes time for workers to search for the jobs that best suit their tastes and skillsFundamental analysis: the study of a companys accounting statements
34、 and future prospects to determine its valueFuture value: the amount of money in the future that an amount of money today will yield, given prevailing interest ratesFixed costs: costs that do not vary with the quantity of output producedFree rider: a person who receives the benefit of a good but avo
35、ids paying for itGame theory: the study of how people behave in strategic situationsGDP deflator: a measure of the price level calculated as the ratio of nominal GDP to real GDP times 100Government purchases: spending on goods and services by local, state, and federal governmentsGross domestic produ
36、ct GDP: the market value of all final goods and services produced within a country in a given period of timeHorizontal equity: the idea that taxpayers with similar abilities to pay taxes should pay the same amountHuman capital: the accumulation of investment in people, such as education and on-the-j
37、ob trainingIdiosyncratic risk: risk that affects only a single economic actorImplicit costs: input costs that do not require an outlay of money by the firmImport quota: a limit on the quantity of a good that can be produced abroad and sold domesticallyImports: goods produced abroad and sold domestic
38、allyIncome effect: the change in consumption that results when a price change moves the consumer to a higher or lower indifference curveIncome elasticity of demand: a measure of how much the quantity demanded of a good responds to a change in consumers income, computed as the percentage change in qu
39、antity demanded divided by the percentage change in incomeIndexation: the automatic correction of a dollar amount for the effects of inflation by law or contractIndifference curve: a curve that shows consumption bundles that give the consumer the same level of satisfactionInferior good: a good for w
40、hich, other things equal, an increase in income leads to a decrease in demandInflation: an increase in the overall level of prices in the economyInflation rate: the percentage change in the price index from the preceding periodInflation tax: the revenue the government raises by creating moneyInforma
41、tionally efficient: reflecting all available information in a rational wayIn-kind transfers: transfers to the poor given in the form of goods and services rather than cashInternalizing an externality: altering incentives so that people take account of the external effects of their actionsInvestment:
42、 spending on capital equipment, inventories, and structures, including household purchases of new housingJob search: the process by which workers find appropriate jobs given their tastes and skillslabor force: the total number of workers, including both the employed and the unemployedLabor-force par
43、ticipation rate: the percentage of the adult population that is in the labor forceLaw of demand: the claim that, other things equal, the quantity demanded of a good falls when the price of the good risesLaw of supply: the claim that, other things equal, the quantity supplied of a good rises when the
44、 price of the good risesLaw of supply and demand: the claim that the price of any good adjusts to bring the quantity supplied and the quantity demanded for that good into balanceLiberalism: the political philosophy according to which the government should choose policies deemed to be just, as evalua
45、ted by an impartial observe behind a “veil of ignorance”Libertarianism: the political philosophy according to which the government should punish crimes and enforce voluntary agreements but not redistribute incomeLife cycle: the regular pattern of income variation over a persons lifeLiquidity: the ea
46、se with which an asset can be converted into the economys medium of exchangeLump-sum tax: a tax that is the same amount for every personMacroeconomics: the study of economy-wide phenomena, including inflation, unemployment, and economic growthMarginal changes: small incremental adjustments to a plan
47、 of actionMarginal cost: the increase in total cost that arises from an extra unit of productionMarginal product: the increase in output that arises from an additional unit of inputMarginal product of labor: the increase in the amount of output from an additional unit of laborMarginal rate of substi
48、tution: the rate at which a consumer is willing to trade one good for anotherMarginal revenue: the change in total revenue from an additional unit soldMarginal tax rate: the extra taxes paid on an additional dollar of incomeMarket: a group of buyers and sellers of a particular good or servicesMarket
49、 economy: an economy that allocates resources through the decentralized decisions of many firms and households as they interact in markets for goods and servicesMarket failure: a situation in which a market left on its own fails to allocate resources efficientlyMarket for loanable funds: the market in which those who want to save supply funds and those who want to borrow to invest demand fundsMarket power: the ability of a single economic actor (or small group of actors) to have a substantial influence on market pricesMaximin criterion: the claim that the government should
