Einführung in die Volkswirtschaftslehre VWL 1 Principles of Economics ECON 100

Transkript

1 Universität Hamburg Prof. Dr. Thomas Straubhaar Prof. Dr. Wolfgang Maennig Einführung in die Volkswirtschaftslehre VWL 1 Principles of Economics ECON 100 Wintersemester 2010/11 Vorlesung

2 Termine der Vorlesungen Prof. Dr. Wolfgang Maennig Donnerstags 14h 16h c.t. ESA A Prof. Dr. Thomas Straubhaar Donnerstags 16h 18h ct c.t. ESA A

3 Zielgruppe Studierende des Grundstudiums VWL Keine fachlichen Vorkenntnisse notwendig Einführung in die Volkswirtschaftslehre Ziele Einführung in die Welt des ökonomischen Denkens und Handelns Erläuterung der Grundfragen und Grundprinzipien der VWL Vorbereitung und Motivation für das Ökonomiestudium Inhalte Grundlagen der ökonomischen Theorie Wie funktionieren Märkte? Wie entstehen Preise? Wie wirken sich makroökonomische Kreisläufe auf Niveau und Veränderung von Einkommen, Beschäftigung und Preisen aus?

4 Gliederung Pflichtlektüre: Mankiw and Taylor (2010), Economics Vorlesung Datum Kapitel (bezogen auf Pflichtlektüre) 01. Principles of Economics 21. Oct 1, 2, Demand 28. Oct 4, Supply 04. Nov 4, Markets 11. Nov 4, Costs of Production and Elasticity of Supply 18. Nov 5, Supply, Demand and Government Policies 25. Nov 6, Economics of the Public Sector 02. Dec 10, 11, Competitive Markets, Monopoly and Oligopoly 09. Dec 4, 14, 15, Data of Macroeconomics 16. Dec 23, The Real Economy in the Long Run 06. Jan Labour Market and Unemployment 13. Jan 18, Monetary System and Inflation 20. Jan 29, Short Run Economic Fluctuations 27. Jan 33, 34, 35

5 Tutorien Unterlagen Alle Informationen zu Vorlesungen und Tutorien finden Sie auf den Webseiten der veranstaltenden Lehrstühle. Prof. Straubhaar Prof. Maennig hamburg.de/straubhaar hamburg.de/economicpolicy/vwl1.html Das Passwort für alle Unterlagen erfahren Sie in der Vorlesung oder von den Leitern der Tutorien. Anmeldung Studenten müssen sich im Voraus über STiNE zu den Tutorien anmelden. Zulassungsvoraussetzungen und Bedingungen für einen erfolgreichen Abschluss Anwesenheit in der Vorlesung Anwesenheit itin den Tt Tutorien Aktive Mitarbeit in den Tutorien Klausurtermine Die Termine für den 1. und 2. Termin der Klausur werden auf den Homepages bekanntgegeben.

6 Modul l1 Principles of Economics

7 Growth Real GDP Growth in % Source: OECD, Economic Outlook No. 87, May 2010, retrieved on 11 Oktober 2010.

8 Unemployment Source: OECD, Economic Outlook No. 87, June 2010, retrieved on 11 Oktober 2010.

9 Inflation Harmonised Index of Consumer Prices in % Source: OECD, Economic Outlook No. 87, May 2010, retrieved on 11 Oktober 2010.

10 Economics Economic History Study of Economy Economic Theory Economic Policy What was? What is? Why? What should be? Past Present Cause// Effect Implications Descriptive Descriptive Analysis Analysis description description explanation intention

11 Economic Theory Micro Economics Single Economic Unit Macro Economics Aggregate Economy Households Companies Static Dynamic Utility Profit Stability Growth Maximisation Maximisation full employment price level

12 Scope of Economic Investigation Human behavior as an object of investigation Main questions How do people make decisions? How do people interact with each other? Economistsprefer methodologicalindividualism Subjects of economy are individuals h d ( l Behind institutions (countries, international organizations, societies, military, administrations, parties) act people who follow their own benefit

13

14

15 People have preferences Preferences are basic human needs food, drinks, shelter, love, recognition, safety Goods and services are able to satisfy these preferences. Which quantities and which goods and services satisfythese preferences? depends on prices and individual marginal utility

16 People behave rationally People follow their owninterest t(to maximise i their individual amount of utility/happiness). People favor good over bad actions. Systematic irrational behaviour is possible, but is punished by bankruptcy orinsolvency (economic darwinism). Incentives for rational acting: peopleact less irrational, the higherh thecostt for irrational behaviour is people act more rational, the higher the benefit for rational bh behaviour is Altruism is a strategy to maximise self interest.

17 People have expectations The future is uncertain. Costs of information are accepted for attaining more certainity about the future. Risk of wrong expectations. Emphasizing i thepresentt vs. emphasizing i the future. No systematic errors.

18 People are restricted In addition topreferences and expectations, tti individual behaviour is simultaneously determined by: the individual purchasing power the relative prices of goods and services (opportunity cost) the technological level (how goods and services are the technological level (how goods and services are combined to satisfy certain individual preferences)

19 Principle #1: People Face Tradeoffs There is no such thing as a free lunch!

20 Principle #1: People Face Tradeoffs To get one thing, we usually have to give up another thing. Guns vs. butter invest in military vs. invest in production of goods Food vs. clothing Leisure time vs. work Efficiency vs. equity Mki d i i i t di ff l Making decisions requires trading off one goal against another.

21 Principle #1: People Face Tradeoffs Society and Scarce Resources The allocation of society s resources is fundamental since resources are scarce. Scarcity means that society has limited resources and therefore cannot produce all the goods and services people wish to have. Economics is the study of how society manages its scarce resources.

22 Principle #1: People Face Tradeoffs What could be produced? Q 1 production possibilities curve (PPC) Q 1 =Quantity of Good 1 Q 2 =Quantity of Good 2 Q 2

23 Principle #1: People Face Tradeoffs Efficiency vs. equity Efficiency means society gets most out of its scarce resources. Equity means the benefits of those resources are distributed fairly among the members of society.

24 Principle #1: People Face Tradeoffs Effiency Tradeoff Equity

25 Principle #2: The Cost of Something Is What You Give Up to Get It Decisions require comparing costs and benefits of alternatives. Go to college or to work? Study or go out on a date? Go to class or sleep in? The opportunity cost of an item is what you give up to obtain that item.

26 Principle #2: The Cost of Something Is What You Give Up to Get It Q 1 What could be produced? production possibilities curve (PPC) opportunity cost: Q 1 = f (Q 2 ) f (Q 2 )0 )<0 f (Q 2 )>0 Q 1 =Quantity of Good 1 Q 2 =Quantity of Good 2 Q 2

27 Principle #3: Rational People Think at the Margin Marginal changes are small, incremental adjustments to an existing plan of action. People make decisions by comparing costs and p y p g benefits at the margin.

28 Principle #4: People Respond to Incentives Marginal changes in costs or benefits motivate people to respond. Thedecision to choose one alternative over another occurs when that alternative s marginal benefits exceed its marginal costs!

29 Principle #5: Trade Can Make Everyone Better off People gain from their ability to trade with one another. Competition results in gains from trading. Trade allows people to specialize in what they p p p y do best.

30 Principle #6: Markets Are Usually a Good Way to Organize Economic Activity A market economy is an economy that allocates resources through hthe decentralized ddecisions i of any firms and households when they interact in markets for goods and services. H h ld d id h b d h k f Households decide what to buy and who to work for. Firms decide who to hire and what to produce.

31 Principle #6: Markets Are Usually a Good Way to Organize Economic Activity Adam Smith made the observation that households and firms (that interact in markets) ets)act as if guided by an invisible hand. Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions. As a result, prices guide decision makers to reach outcomes, p g that tend to maximize the welfare of society as a whole.

32 Principle #7: Governments Can Sometimes Improve Market Outcomes Market failure occurs when themarket fails to allocate resources efficiently. When the market fails government can g intervene to promote efficiency and equity.

33 Principle #7: Governments Can Sometimes Improve Market Outcomes Market failure may be caused by an externality, which is the impact of one person s or firm s actions on the well being of a third party, without compensation. market power, which is the ability of a single person or firmto unduly influence marketprices.

34 Principle #7: Governments Can Sometimes Improve Market Outcomes Which Distribution? Distribution Effort (Payments for factors of production) Need (Minimum Endowment) Personnel income distribution Functional income distribution (group of persons) (factors of production )

35 Principle #8: The Standard of Living Depends on a Country s Production Standard of living may be measured in different ways: By comparing personal incomes. By comparing the total market value of a nation s production.

36 Principle #8: The Standard of Living Depends on a Country s Production Almost all variation in living standards is explained by differences in countries productivities. Productivity is the amount of goods and services produced from each hour of a worker s time.

37 Summary (1/2) When individuals id make decisions, i they face tradeoffs among alternative goals. The cost of any action is measured in terms of foregone opportunities. Rational people make decisions by comparing marginal costs and marginal benefits. People change their behaviour in response to People change their behaviour in response to the incentives they face.

38 Summary (2/2) Trade can be mutually beneficial. i Markets are usually a good way of coordinating trade among people. Governments can potentially improve market outcomes if thereis market failure. Productivity is the ultimate source of securing Productivity is the ultimate source of securing living standards.