The author strongly advocates the role of market self-regulation and disapproves of state regulation.
What can you remember after reading it yourself?
1. The transaction is beneficial to both parties (positive sum).
When there are differences between the "buyer" and the "seller", the transaction between them is not zero-sum, and secondly, it will bring benefits to both parties, that is, consumer surplus and profit. The reason is that, for example, one is good at fishing and the other is good at breeding. It is good for both sides to exchange fish for food, because if they do not exchange, they will produce things that they are not good at, which will be thankless and reduce the overall efficiency. The reason for this result lies in the division of labor.
Therefore, in this market economy society, we should focus on our own division of labor. ? Make others happy and make yourself happy.
3. Money and finance, fiscal expenditure and taxation, and national regulatory tools.
The economic crisis seems to be caused by the increase of intermediate products and the break of capital chain caused by "circuitous production".
Economics should be related to human behavior.
6. aging. Is it so serious ... the aging of the population accelerated from 202 1 to 2050, reached its peak in 2050, and maintained its peak from 2050 to 2 100, with the aging level around 3 1%. It seems that the aging in 2020 is a bit serious. The elderly in China are over 60 years old. At the end of 20 19, the proportion of people over 60 years old was 18%, nearly 1/5.
Principles of economics Zhang
The first chapter is economic thinking
Economics: the science of how to effectively allocate scarce resources (narrow sense); The study of how humans cooperate (in a broad sense);
Since the reform and opening up in China, the productive forces have been liberated because of cooperation? At first glance, it seems wrong. There is technological progress, but in a broad sense, it is technological progress produced by cooperation with foreign countries.
Opportunity cost: the maximum value that people give up in order to achieve a certain goal.
Marginal: minor adjustments to existing actions.
Due to the differences between people, free trade is a positive sum game. Free trade is not the same as.
Division of labor: 1, perfect technology and proficiency; 2. Save the time of labor replacement; It increases the possibility of inventing new tools.
There is a famous example in economics. One person can't make 20 pins a day, but 10 person can make 48,000 pins. This is especially true in modern society.
It used to be thought that the development of science and technology led to the great improvement of productivity, and perhaps the market demand gave birth to technological progress.
We don't mean necessary, but beneficial to them.
Economics research. Why do you think so? Because if you don't do this, you can't deal with it mathematically. This is putting the cart before the horse.
Chapter II Preference and Choice
Preference: the relationship between goals and means.
The marginal value theory has replaced the labor value theory in classical economics.
Safeguarding vested interests: Keynes's macroeconomic theory has been proved to be problematic, but it can provide theoretical support for government intervention in the economy.
Economics is very important because it can change people's ideas.
An important aspect of human progress is that the proportion of happiness gained in the course of action is increasing, while the proportion of happiness gained in the result is decreasing.
Law of diminishing marginal utility. Increasing the utility added value corresponding to unit consumption becomes marginal utility.
Chapter III Exchange of Division of Labor and Currency
Direct exchange: barter, both parties are buyers and sellers.
Nash equilibrium: If two people have the same bargaining power, the profit of the transaction will be distributed equally between them.
Comparative advantage: comparative advantage. In the production efficiency of specific products, the disadvantage is relatively small and the opportunity cost is small. Because the blind can't work, the opportunity cost of providing storytelling service is very small.
The birth of david ricardo proved that he also had comparative advantages under absolute superiority. Everyone can make money, which one is more profitable?
Vertical division of labor: division of labor in product production chain.
Apple's production and assembly are all over the world: one is the cost of workers, not tax evasion.
Indirect exchange: using money as the medium. Money, a widely accepted trading medium.
Transaction cost: the cost that must be paid to complete the transaction. Looking for trading partners, negotiating prices, signing contracts, executing contracts, etc.
Jiaozi: The people spontaneously took over by the government.
Market economy: price.
Price function: 1, transmitting information; 2. Provide incentives; 3. Decide on income distribution.
Chapter IV Consumer Choice and Demand Curve
People in China used to drink white wine instead of wine. When people realized that wine was healthier, many people began to use wine instead of white wine. Then the wine merchants in China will try to make some healthier "white wine". Or do some research to show that liquor is healthier?
Jia Xu commodity: The price has dropped, but the demand for it has decreased.
Engel coefficient: the proportion of food expenditure to total expenditure. Engel 40~50% well-off? A well-off society is only one level higher than food and clothing.
Consumer surplus: the difference between the highest price that consumers can accept and the actual price.
The logic of the market: If you want to be happy, you must first bring happiness to others.
Limiting luxury consumption at present is equivalent to not letting many people consume necessities in the future?
Chapter V Production and Supply Curves
The economy is influenced by the law of diminishing marginal productivity and is also dominated by technological progress.
The substitution rate of labor for capital, and the substitution rate of capital for labor. Marginal rate of technical substitution's law of diminishing returns.
Scale reward. Increase the ratio of input-output growth.
Economies of scale: the increase in cost is less than or equal to the increase in output.
Many state-owned enterprises occupy a lot of land and other resources, which is a huge opportunity cost from an economic point of view.
Sunken cost, paid cost and irrecoverable cost.
Ultra-low fare ticket: the marginal cost of airlines is extremely low.
Chapter VI Supply, Demand and Price
Total surplus. Consumer surplus (the difference between expenditure and willingness to spend), producer surplus (profit).
Initial public offering initial public offering. Stocks are investments, not consumption.
The failure of planned economy: people's preferences are changing, technology is changing, …
India's economy is the coexistence of planned economy and market economy.
The government restricts the price of domestic drugs, making manufacturers unprofitable, fleeing the industry, and importing drugs instead of domestic drugs, hurting consumers.
Most of the tax increase on daily necessities is passed on to consumers; Most of the tax increase on luxury goods (with greater demand elasticity) is passed on to producers.
House can be said to be a necessity, so its tax increase will eventually be passed on to consumers.
After the income tax is levied on the company in Hong Kong, no personal income tax will be levied; Both are levied in the mainland.
Many taxes levied on the rich will be passed on to the poor.
Congestion fee? ! Strange knowledge. And abroad and Shenzhen.
Chapter VII Factor Market and Income Distribution
Wage and labor price; Interest, capital price;
Profit is one of the most difficult concepts in economics.
Profit is the indirect pricing of entrepreneurship (a special factor of production).
Derivative demand, the demand of enterprises for intermediate products comes from the demand of consumers for final products.
This damn thing is a bunch of curves.
Higher legal wages come at the expense of unemployment.
University education 20 years ago was elite education, and now university education is general education.
Demographic dividend: On the premise that the wage level remains unchanged, there is almost no limit to the labor supply.
One-child policy, no one is engaged in high-risk industries-changing technology to reduce risks?
The increase in wages is related to the stagnation of population growth. ...
If anyone can become Yao Ming or Faye Wong through training, they won't get so much salary.
Gini coefficient measures income inequality.
Taxes on high-income groups will still be passed on to low-income people.
Chapter VIII Entrepreneurs
Market uncertainty, profit is actually a reward for entrepreneurs to bear uncertainty.
Find or create a balance point
Chapter IX Competition and Monopoly
Competitive monopoly, one is economic and the other is political.
Price discrimination: differential pricing, willing to pay for better service.
The original intention of anti-monopoly law is to protect consumers, but its result may run counter to it.
Nash equilibrium: When everyone knows the equilibrium point, they will choose the equilibrium point.
Chapter X Externality and Public Goods
Externality: the influence on the outside world.
Pareto optimal state: compared with this state, there is no other state, which makes at least one person's situation better and no one else's situation worse. (self-interest does not harm others. )
Pareto improvement: no one is hurt, at least one person benefits.
Caldo-Hicks improvement. The improvement of total wealth growth.
The first theorem of welfare economics: the equilibrium result of a perfectly competitive market must be Pareto optimality.
Traditional economists use taxes/subsidies to make policies. /dog head
Coase Theorem: If the transaction cost is low, then as long as the property right is clear, the externality problem can be solved through market negotiation.
Coase theorem tells us that the most important task of the government is not to subsidize or collect taxes, but to clearly define and strictly protect property rights.
The householder shall bear the consequences (property rights) of the policy of fixing production quotas to households.
According to traditional economics, the government provides funds for public goods through taxes. (Solving the Prisoner's Dilemma)
This paper holds that the market economy provided by the private sector can provide a solution for public services. (that is, setting non-exclusive to exclusive. )
Chapter II XI Asymmetric Information and Market
Information asymmetry: Not all good used cars can be sold.
Will information asymmetry lead to market failure? In fact, the market can adjust itself. For example, the reputation mechanism, the more active party, the third party.
All these will lead to the loss of efficiency, that is, transaction costs.
Third party: Alipay.
The more countries the government intervenes, the more serious adverse selection will be.
Bad money drives out good money: when the actual value of the two is different but the marked value is the same, people will tend to collect the one with high actual value, while the one with low actual value will circulate in the market.
————————— Macroeconomics
Chapter XII Introduction to Macroeconomics
Taking the economic aggregate reflecting the overall situation of the national economy as the object of investigation, this paper studies the determination mode, mutual connection and changing law of the economic aggregate. Terms such as GDP, inflation, unemployment rate, consumption, investment, monetary policy and fiscal policy.
One is long-term economic growth, and the other is short-term economic fluctuation.
It is generally believed that the Keynesian revolution opened macroeconomics. 1929 Great Depression.
Keynesianism: It is suggested that the government abandon the "laissez-faire" policy and actively intervene in the economy through monetary and fiscal policies.
The Austrian school believes that the market has the function of self-repair, and government intervention in the economy will lead to a greater crisis.
Monetarism believes that the main reason for the change of nominal national income is the change of money supply, opposes the government's intervention in the economy and advocates the implementation of a single-rule monetary policy.
Rational expectation theory: because people may make rational predictions about policies and take countermeasures in advance, the monetary policy aimed at stabilizing the economy is doomed to failure. (Sao)
GDP refers to the market value of all final products produced by economic society using production factors in a certain period of time. Gross domestic product.
The marriage of male host and nanny leads to the decline of GDP, because the nanny does housework and the hostess doesn't.
Taking consumption and investment as tools to increase GDP is to reverse the purpose and means.
Human development index: health and longevity, education level and living standard.
Nominal GDP and real GDP;
Real GDP is based on the price of a certain year, excluding the price impact.
Inflation: the overall price level has risen.
Inflation leads to the transfer of wealth from creditors to debtors. The transfer of wealth from depositors to borrowers.
Savings, bank loans, money is not enough. ? If you borrow money and pay back the money, you will lose money if the interest cannot cover inflation.
In the practice of unemployment statistics in China, the urban registration data are used. Will greatly underestimate the real unemployment situation with heavy economy.
"survey unemployment rate" and "urban unemployment rate"
Chapter XIII Economic Growth
Lewis turning point: economic development is the expansion process of modern industrial sector relative to traditional agricultural sector until all the surplus labor in this sector is transferred. (Before this, there was a surplus of labor)
Market size-division of labor and specialization-productivity-economic growth-market size (all links are driven by entrepreneurs)
Chapter XIV Economic Fluctuations
The exchange rate is determined by purchasing power parity. Total supply and total demand between the two countries.
Subprime loan crisis.
The population aging accelerated from 202 1 to 2050, reached its peak in 2050, and maintained its peak from 2050 to 2 100, with an aging level of about 3 1%.
Chapter 15 Macroeconomic Policy Analysis
Economic growth, full employment and price stability.
Monetary policy: regulating the money supply.
Fiscal policy: fiscal expenditure and tax increase and decrease.
Reserve: the proportion of bank deposits in the central bank.
The behavior of the central bank to change the money supply through valuable political power and foreign exchange transactions with designated dealers.
Fiscal policy: changing government expenditure (investment and consumption) or taxes to affect aggregate demand.
Multiplier effect and crowding-out effect.
Should the government regulate the economy through macroeconomic policies? Did not reach * * * knowledge.
Chapter XVI Macroeconomic Theory of Austrian School
In times of economic crisis:
Why are all enterprises losing money?
Why are the fluctuations in upstream and downstream industries different?
Where did the money in the market go?
Circuitous production: producing means of production, and then producing consumer goods with means of production.
Many industries invested in the boom period were no longer cost-effective, so they were forced to stop, and prices and wages fell.
Austrian school: understanding economy from the perspective of structure rather than overall indicators.