-
1.
Demand
curve
and
supply
curve
and
interrelated
concepts just
like elasticity of demand and supply.
Demand
curve:
In
economics,
the
demand
curve
is
the
graph
depicting
the
relationship
between
the
price
of
a
certain commodity, and the
amount of it that consumers are
willing
and able to purchase at that given price.
Supply curve:
A graph
showing the hypothetical supply of
a
product
or
service
that
would
be
available
at
different
price points.
Elasticity
is the ratio of
the percent change in one variable
to
the
percent
change
in
another
variable.
It
is
a
tool
for
measuring
the
responsiveness
of
a
function
to
changes
in
parameters
in
a
unitless
way.
Frequently
used
elasticities
include
price
elasticity
of
demand,
price
elasticity
of
supply,
需求弹性
Price
elasticity of demand :
PED is a measure
of
responsiveness
of
the
quantity
of
a
good
or
service
demanded
to
changes
in
its
price.
The
formula
for
the
coefficient of price elasticity of
demand for a good is:
The above
formula usually yields a negative value, due to
the
inverse
nature
of
the
relationship
between
price
and
quantity demanded, For example, if the
price increases by
5%
and
quantity
demanded
decreases
by
5%,
then
the
elasticity at the initial price and
quantity = ?5%/5% = ?1.
2.
Theory of utility consumer theory
1)
Utility is a measure of
relative satisfaction.
2)
Law of
diminishing marginal utility
The
marginal
utility
of
each
(homogenous)
unit
decreases
as the supply of
units increases
3)
Consumer’s
surplus:
Consumer
surplus
is
the
difference
between
the
maximum
price
a
consumer
is
willing to pay and the actual price
they do pay
4)
The
producer
surplus
is
the
amount
that
producers
benefit
by
selling
at
a
market
price
mechanism
that
is
higher
than
the
least
that
they
would
be
willing
to
sell for.
5)
Attitude
people
towards
risks:
risk
avoidance,
risk preference, risk neutral
6)
An
Engel
curve
describes
how
household
expenditure
on
a
particular
good
or
service
varies
with
household income.
3. Production theory
1)
The
target
of
a
firm
pursues
the
maximum
of
profit
In economics, returns to scale and
economies of scale are
related
terms
that
describe
what
happens
as
the
scale
of
production increases in the long run.
The term
returns to scale
arises in the context of a firm's
production function. It refers to
changes in output resulting
from a
proportional change in all inputs. If output
increases
by
that
same
proportional
change
then
there
are
constant
returns to scale (CRS). If output
increases by less than that
proportional
change,
there
are
decreasing
returns
to
scale
(DRS).
If output increases
by
more
than that proportional
change, there
are increasing returns to scale (IRS). Thus the
returns to scale faced by a firm are
purely technologically
imposed and are
not influenced by economic decisions or
by market conditions.
Economies
of
scale:
is
a
long
run
concept
and
refers
to
reductions in unit cost as the size of
a facility and the usage
levels of
other inputs increase.
The common
sources of economies of scale are purchasing
(bulk
buying
of
materials
through
long-term
contracts),
managerial (increasing the
specialization of managers), and
technological
(taking
advantage
of
returns
to
scale
in
the
production
function).
Each
of
these
factors
reduces
the
long
run
average
costs
(LRAC)
of
production
Economies
of scale refer to a firm's costs;
returns to scale describe the
relationship
between
inputs
and
outputs
in
a
long-run
production.
Cost theory:
1)
Opportunity
cost:
It
is
kind
of
sacrifice
related
to the other best choice available to
people who had several
mutually
exclusive choices.
Economic profit: A
firm is said to be making an economic
profit
when
its
average
total
cost
is
less
than
the
price
of
each
additional
product
at
the
profit-
maximizing
output.
The
economic
profit
is
equal
to
the
quantity
output
multiplied by the
difference between the average total cost
and the price.
Normal profit
= cost: A firm is said to be making a normal
profit when its economic profit equals
zero.
Perfect
competitive
market;
monopolistic
competition
market;
monopolistic market; oligopolistic market.
Price
discrimination
< br>：
When
sales
of
identical
goods
or
services
are
transacted
at
different
prices
from
the
same
provider.
Price
discrimination
can
only
be
a
feature
of
monopolistic and oligopolistic markets,
Market failure:
a concept
within economic theory that the
allocation
of
goods
and
services
by
a
free
market
is
not
efficient.
Market
failures
are
often
associated
with
information
asymmetries,
Monopolies,
externalities,
or
public
goods.
The
existence
of
a
market
failure
is
often
used
as
a
justification
for
government
intervention
in
a
particular
market.
However,
some
types
of
government
policy
interventions,
such
as
taxes,
subsidies,
wage
and
price
controls,
and
regulations,
including
attempts
to
correct
market
failure,
may
also
lead
to
an
inefficient
allocation
of
resources,
(sometimes
called
government
failures).
Thus,
there
is
sometimes
a
choice
that
whether
uses government
intervention when market failures occur.
Externalities:
The actions
of agents can have externalities,
which
are
innate
to
the
methods
of
production.
For
example,
if
a
firm
is
producing
steel,
it
pollutes
the
atmosphere
when
it
makes
steel,
however,
and
if
it
is not
forced
to pay for the use of this resource, then this
cost will
be borne not by the firm but
by society.
Common examples of an
externality is environmental harm
such
as pollution or overexploitation of natural
resources.
Monopolies:
Agents
in
a
market
can
gain
market
power,
allowing
them
to
block
other
mutually
beneficial
gains
from
trades
from
occurring.
In
a
monopoly,
the
market
equilibrium
will
no
longer
be
Pareto
optimal.
The
monopoly
will
use
its
market
power
to
restrict
output
below the quantity at
which the marginal social benefit is
equal to the marginal social cost of
the last unit produced,
so as to keep
prices and profits high.
Information
asymmetry
deals with the study of
decisions
in
transactions
where
one
party
has
more
or
better
information
than
the
other.
This
creates
an
imbalance
of
power
in
transactions
which
can
sometimes
cause
the
transactions
to
go
awry.
Examples
of
this
problem
are
adverse selection and
moral hazard.
Public good
is
a good that is non-rival and non-excludable.
Non-rivalry
means
that
consumption
of
the
good
by
one
individual
does
not
reduce
availability
of
the
good
for
consumption by others; and non-
excludability that no one
can be
effectively excluded from using the good.
Consumers
can
take
advantage
of
public
goods
without
contributing
sufficiently to their creation. This is called the
free
rider
problem.
If
too
many
consumers
decide
to
'free-
ride',
private
costs
exceed
private
benefits
and
the
incentive to provide the good or
service through the market
disappears.
The
market
thus
fails
to
provide
a
good
or
service for which there is a need.
Pareto
efficiency
,
or
Pareto
optimality
:
Given
an
initial
allocation of goods among a set of
individuals, a change to
a
different
allocation
that
makes
at
least
one
individual
better off
without making any other individual worse off is
called
a
Pareto
improvement.
An
allocation
is
defined
as
efficient
or
optimal
when
no
further
Pareto
improvements can be made.
Rent-seeking
generally
implies
the
extraction
of
uncompensated
value
from
others
without
making
any
contribution to
productivity, such as by gaining control of
land
and
other
pre-existing
natural
resources,
or
by
imposing
burdensome
regulations
or
other
government
decisions
that
may
affect
consumers
or
businesses.
Rent-seeking
agents
will
spend
money
in
socially
unproductive ways, such as political
lobbying, in order to
attain, maintain
or increase monopoly power.
Monetary policy
Central
banks chosen a country's monetary policy and
manages a state's currency, money
supply, and interest rates
in order to
reduce unemployment,
make
Price stability;
Economic
growth
and Financial market
stability
Interest rate interventions
A central bank controls certain types
of short-term interest
rates. Lowering
the interest is to encourage economic
growth and is often used to alleviate
times of low economic
growth. On the
other hand, raising the interest rate is often
used in times of high economic growth
as a contra-cyclical
device to keep the
economy from overheating and avoid
market bubbles.
1.
倾销：倾销是指一产品从一国出口到另一国的出口价格低于在
正常贸易过程中出口国供消费的同类产品的可比价格，即以低
于正常价值的价格进入另
一国的商业。
Dumping
occurs
when
manufacturers
export
a
product
to
another country at a
price
either below the price charged
in
its
domestic
market,
or
in
quantities
that
cannot
be
explained
through normal
market competition.
2.
反倾销：
（
Anti-Dumping
）指对外国商
品在本国市场上的倾销所
采取的抵制措施。一般是对倾销的外国商品除征收一般进口税<
/p>
外，再增收附加税，使其不能廉价出售。
Anti-dumping is a boycott measure to
foreign production which is
dumped in
domestic market. Usually, collect additional tax
to this
kind of production to avoid the
low price.
3.
关税同盟：是指两个或两个以上国
家缔结协定，建立统一的关
境，在统一关境内缔约国相互间减让或取消关税，对从关境以
外的国家或地区的商品进口则实行共同的关税税率和外贸政
策。
关税同盟从欧洲开始，是经济一体化的组织形式之一。对
内产行减免关税和贸易限制，商
品自由流动；对外实行统一的
关税和对外贸易政策。拥有共同对外关税的自由贸易区。参
与
国共同设定对外贸易政策，但各国有时仍会各自制定贸易配额。
A customs union is a type of trade bloc which is
composed of a
free
trade
area
with
a
common
external
tariff.
The
participant
countries set up
common external trade policy, but in some cases
they use different import quotas.
Common competition policy is
also
helpful to avoid competition deficiency.
关税及贸易总协定
(General
Agreement
on
Tariffs
and
Trade,GATT)
是一个政府间缔结的有关关税和贸易
规则的多边国际协定，简
称关贸总协定。它的宗旨是通过削减关税和其它贸易壁垒，削<
/p>
除国际贸易中的差别待遇，促进国际贸易自由化，以充分利用
世界
资源，扩大商品的生产与流通。是在布雷顿森林体系中，