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Chapter 1 What Is Economics All About 1

Ⅰ.Where Did Economics come from? 1

Ⅱ.What Is the Purpose of the Study of Economics? 3

Ⅲ.Subject Matter of Economics 7

Ⅳ.Definition of Economics 13

Ⅴ.Macroeconomics and Microeconomics and Their Goals 14

Ⅵ.The Classification of the Questions Western Economics Deals with 16

Ⅶ.Positive and Normative Economics 24

Chapter 2 Demand and Supply 27

Ⅰ.Demand 27

1.Individual Demand 28

2.Market Demand 36

Ⅱ.Supply 41

1.Individual Demand 42

2.Market Demand 49

Ⅲ.The interaction of Supply and Demand 52

1.The market Equilibrium 52

2.Formation of Equilibrium Price 54

3.Excess Quantity Demanded of Shortages 56

4.Excess Quantity Supplied or Surplus 58

5.The Effects of Changes in Demand and Supply on Equilibrium 59

Ⅳ.Restraining the Market Mechanism: Price Ceilings and Price Floors 63

Chapter 3 Elasticity 68

Ⅰ.Definition of Elasticity 68

Ⅱ.Elasticity of Demand 69

1.Price Elasticiety of Demand 70

2.Unit Elasticity 73

3.Determinamts of Elasticity of Demand 76

4.Elasticity of Demand and Total Revenue of Sellers 80

5.Calculating Elasticity of Demand 85

6.Income Elasticity of Demand 87

7.Cross-elasticity of Demand 89

8.Substitutes,Complements and Non-related goods 90

Ⅲ.Elasticity of Supply 92

1.Totally Inelastic Supply 93

2.Totally Elastic Supply 94

3.Unit Elastic Supply 94

4.Inelastic Supply 95

5.Elastic Supply 95

Chapter 4 The Theory of consumer Behaviour 99

Ⅰ.Marginal Utility Analysis 99

1.Consumers 99

2.Wants and Utility 100

3.Consumer Equilibrium 112

Ⅱ.Indifference Curve Analysis 123

1.The Indifference Curve 123

2.Assumptions about Preferences 126

3.Characteristics of the Indifference Curves 127

Ⅲ.Budger Line 131

1.Properties of a Budget Line 133

2.Consumer Equilibrium 135

Ⅳ.Indifference Curves and Consumer Demand Curve 138

1.Income-consumption Line 138

2.Price- consumption Line 139

3.Price- consumption Line and Demand Curve 141

Ⅴ.Substitution and Income Effects 143

1.Substitution and Income Effects from a Fall in Price 144

2.Substitution and Income Effects from a Rise in Price 146

3.Substitution and Income Effects for Inferior Goods 149

4.Substitution and Income Effects for Giffen Goods 150

Chapter 5 Production Theory 154

Ⅰ.Different Forms of Firms 154

1.Sole Proprietorship 154

2.Partnership 155

3.Corporations 155

Ⅱ.Production and ist Basic Rules 156

1.Production Functions 157

2.Technological Coefficient 159

3.Production with One Variable Input 162

4.Economies of Scale 170

Ⅲ.Cost and Revenue Analysis 176

1.Cost Analysis 176

2.Revenue Analysis 193

Ⅳ.The Optimum Combination of Production Resources 199

1.Isoquants 199

2.Characteristice of Isoquant 200

3.Iso-cost 204

Ⅰ.The Goods Market and Factor Market 210

Ⅱ.Three Co-ordination Tasks in the Economy 212

Ⅲ.The Concept of Efficient Resource Allocation 218

1.Efficiency in Output Selection 220

2.Efficiency in Production Planning 222

3.Efficiency in Distribution of Commodities 223

4.How the Invisible Hand is at Work 225

Chapter 7 The Concept of Market Structure 227

Ⅰ.Perfect Competition 227

1.The Rule of Revenues of a Firm under Perfect Competition 231

2.Equilibrium of the Competitive Firm 233

Ⅱ.Monopoly 249

1.Causes of Monopoly 250

2.Natural Monopoly 252

3.The Rule of Revenue under Monopoly 253

4.Firm s Equilibrium under Monopoly 256

Ⅲ.Monopolistic Competition 260

1.Conditions for Monopolistic Competition 260

2.Equilibrium under Monopolistic Competition 262

Ⅳ.Oligopoly 266

1.Oligopoly Theory 267

2.Oligopoly Cost and Demand 271

3.The Kinked Demand Curve 271

Ⅴ.Efficiency Comparison of Different Markets 275

Chapter 8 Distribution Theory 281

Ⅰ.Distribution Theory Based on Marginal Productivity 281

1.Marginal Productivity 281

2.Marginal Physical Product 282

3.Marginal Revenue Product 282

4.The Marginal Productivity Theory of Distribution 283

Ⅱ.Distribution Theory Based on Price Equilibrium 288

1.The Equilibrium Price Theory of Distribution 288

2.The Demand and Supply of Production Resources 288

3.Determinants of the Equilibrium Wage Rate 295

4.Marginal Efficiency of Capital and Determination of the Interest Rate 301

5.Determinants of Equilibrium of Land Rent 308

Ⅲ.Profit Theory 310

1.Innovation 311

2.Risk Bearing 311

3. Monopoly Profits 311

Ⅳ. Lorenz Curve 312

Chapter 9 Summary 316

Ⅰ.What Is Economics All About? 316

Ⅱ. Demand and Supply 318

Ⅲ.Elasticity 319

Ⅳ.The Theory of Consumer Behaviour 320

Ⅴ.Production Theory 323

Ⅵ.Price System 325

Ⅶ.The Concept of Market Structure 326

Ⅷ.Distribution Theory 328

GIGLIOGRAPHY 330