Demand function: the relationship between the quantity of commodities needed and various factors affects the demand for bulk commodities.
Demand table: a series of figures show the quantity of goods needed at different price levels and the goods between various appropriate price levels.
Demand curve of commodities: Draw a curve according to the different prices of commodities.
Power supply: willing and able to supply enough commodities for production and sales when supplying. "
Supply function: it is the relationship between commodity supply and commodity price. The relationship between numerical sequences in the table
Supply table: commodity prices and commodity supply correspond to different prices.
Commodity supply curve: a curve that draws a plane curve on the supply plan-supplying goods according to the combination of different prices.
Balance: the most general meaning, under certain conditions, to achieve the interaction of relatively static state variables related to economic affairs.
Equilibrium price: the price of commodity market demand and market supply. The quantity of price level with equal balance between supply and demand is called equal measure.
Demand change: the quantity of demand for bulk commodities caused by the price change of a commodity, other things being equal.
Changes in demand: under the same conditions, changes in commodity prices and quantities, as well as changes in other factors, demand for commodities.
Supply change: change the supply of a commodity caused by price change, and keep it unchanged under other conditions.
Supply change: Changes caused by changes in the price and supply of a commodity under the same conditions.
International trade theory: other things being equal, the change of demand leads to the change of supply equilibrium price in the same direction, and the change of equilibrium price and quantity is in the opposite direction, so the equilibrium number changes in the same direction.
The realistic economic affairs and internal relations are based on the economic theory and system of the real economy: an abstract description of the main characteristics.
Economic model: a theoretical structure used to describe the relationship between economic variables related to economic research.
Exogenous variables are determined by factors outside the known variable model, which are established in the model according to external conditions.
Description of endogenous variable model system.
Exogenous variables and endogenous variables, endogenous variables and exogenous variables determined by exogenous variables cannot be explained as a model system.
Are parameter values usually the same? Variables can also be understood as constant variables.
Elasticity: In general, as long as there is a functional relationship between two economic variables, we can use elasticity to cope with the change of the sensitivity of the dependent variable.
Elastic coefficient = variable proportion
Due to the change of variable proportion, the price elasticity of demand is within a certain period of time. In addition, the percentage change of% in a certain period is due to the change of commodity demand of this commodity.
Price arc elastic demand: the response level of demand change and price change to commodity demand curve between two points. Simply put, it represents the elasticity between two points on the demand curve.
When the demand price elasticity tends to infinity: when the demand price elasticity between two points on the demand curve, the point elasticity changes. In other words, this means that the demand curve of a point changes with the price.
Cross-price elasticity of demand: the reaction degree of a commodity price change to the demand change in a certain period. Or the percentage of the price change of this commodity is 1%, because the demand of another commodity has changed in a certain period of time.
Substitution: Two commodities can substitute each other to satisfy consumers' desires. It is claimed that there are two commodities and there is a substitution relationship between the substitutes of the two commodities. Products.
Complementary products: If two commodities must be used at the same time to satisfy consumers' desires, then the two commodities and the complementary products between the two commodities are complementary.
Income elasticity of demand: refers to the change of quantity, income, consumer goods and consumption demand in a certain period of time, and the degree of reaction.
Ordinary commodities: the changes of commodity demand and income are in the same direction. It can be further divided into necessities and luxuries.
Fake and shoddy goods: the demand for goods and income change inversely.
Elasticity of supply price: the degree of response of goods supplied to price changes in a certain period of time. Or the change of commodity prices after a certain period, due to the percentage change of commodity supply.
The supply curve of a commodity reflects the change between two points of price change.
Supply price elasticity: a little elasticity, a supply curve of goods.
Engel's Law: As the income of a family or a country increases, the proportion of food expenditure decreases. In order to express the concept of elasticity: for a family or a rich country with a high level of food expenditure, the income elasticity is small, and vice versa.
Chapter III Utility Theory
Utility program: a utility tool to evaluate the ability of goods to meet people's wishes or the satisfaction degree of consumer goods.
A unit for measuring utility.
Total utility (TU): The sum of a certain amount of utility generated by consumers' consumption of a commodity in a certain period of time.
Marginal utility (MU): the extra amount that consumers increase the utility of unit commodity consumption in a certain period of time.
Marginal quantity: the cell parameter that the change of quantity causes the change of dependent variable. Marginal method of independent variable change with diminishing marginal utility
In a certain period of time, if the consumption of other commodities remains unchanged, will it increase consumers' consumption of commodities from the increase of each unit of commodities? Consumer utility increases and marginal utility decreases.
Consumer equilibrium: study the monetary income distribution of a single consumer buying a limited variety of goods in order to obtain the maximum benefit.
Commodity demand price: the highest price that consumers are willing to pay, a certain number of commodities in a certain period of time.
The remaining total price and the difference between the consumer's highest salary and the actual total price paid, consumers are willing to buy a certain number of goods.
Indifference curve: all combinations of consumer preferences of two identical goods. In addition, it is considered as a combination of two public utilities or satisfactory products, which can give consumers the same level.
Utility function: specific commodity combination, consumer utility level.
Utility function: indifference curve corresponding to utility function.
Marginal substitution rate (MRS): On the premise of commodity, it is necessary to give up the consumption of another commodity in order to keep the consumption of public utility consumers at the same level.
Law of decreasing substitutes: goods that maintain the same utility level and increase consumption under the condition of marginal tax rate? Consumers are interested in all units of this commodity. Reduce the consumption of another commodity that needs to be abandoned.
Perfect substitution: the substitution ratio between two commodities is fixed.
The demand for completely complementary products to use two commodities in a fixed proportion.
Budget line: also known as constraint, consumption possibility line and price line. Given the income of consumers and the price of commodities, consumers with total income can buy various combinations of the two commodities.
Equilibrium conditions for maximizing consumer utility: under certain budget constraints, consumers should choose the best combination of commodities to make the substitution of these two commodities equal to the ratio of marginal tax rate to the prices of these two commodities.
When the change of compensation budget line causes the change of commodity price, the actual income level of consumers should maintain the same analysis tool when the monetary income borne by consumers increases or decreases.
The change of real income level caused by the change of commodity price and the income effect of the change of real income level on the demand of bulk commodities.
Substitution effect: the change of relative price of goods leads to the change of commodity price, which leads to the relative change of demand for goods.
= income effect+substitution effect
Uncertainty: economic actors can't know the results of some decisions accurately in advance, or as long as the total practicality determined by the economically possible results is more than one actor, uncertainty will arise.
Risk: consumer's decision-making behavior, knowing various possible outcomes. If consumers know the probability of various possible outcomes, you can call this situation uncertain risk.
The theoretical ability of producers (suppliers, manufacturers, enterprises) enables a single economic unit to make unified production decisions.
Transaction cost: the cost of a transaction contract.
Production function: the relationship between the output of various factors in a certain period, the quantity at the same technical level, the output and the usage, and the maximum output.
Fixed substitution production function in proportion: at each production level, the ratio between any two production factors is fixed.
Fixed proportion investment The proportion of any factor input in the production function is fixed at every production level.
Short-term and unique production time to adjust the quantity of all production factors. At least one factor's productivity is a fixed period of time.
Long-term: producers can adjust all factors of production time cycle.
Total labor output TP labor input corresponds to the highest output of some variables.
The average rate of return of labor force is a variable factor, that is, labor input per unit output.
marginal product
Variable factors refer to the output increased by employers' increasing labor input.
Marginal income is decreasing, and the number of production variables remains unchanged: this phenomenon widely exists in production: at the same technical level, when the input of such production variables is less than a certain value, one or more contents have the same quantity, and the marginal products of components increase; When this variable factor increases, the marginal productivity of continuous input factors will decrease and investment will increase when it exceeds a certain value. Therefore, marginal products will inevitably show downward functions in the end.
The trajectory of income curve is different from the combination of two production factors, and it produces the same rate of return at the same technical level.
Under the condition of keeping the production level unchanged, the marginal substitution rate increases the input unit and reduces a certain amount of other components.
Law of diminishing marginal rate of technological substitution: under the same production conditions, with the increase of production input, each unit of production factor can be replaced by another factor, and the production quantity of one factor decreases.
Cost line: mature cost, and establish a factor price, producers can buy a variety of figures to combine the production trajectory of two factors.
Contour: The locus of a group of points equal to the marginal rate of technical substitution and the output line.
Extended production, production technology and other conditions remain unchanged price factors. If it changes the cost of the enterprise and the deviation of other cost lines, and changes the profit curve of the enterprise, it will produce a series of different production balance costs and the tangents of the extension lines of these production balance cost trajectories.
(Extension lines must be diagonal)
Opportunity cost of chapter cost theory: the opportunity to produce a unit, the cost of goods is that the producer with the highest income gives up using the same production factors for other production purposes.
The accounting cost and the amount invested in the production process are reflected in the accounting books.
Significant cost: the actual expenditure of purchasing or leasing production factors owned by other manufacturers, and the production factors in the market.
Implicit cost: the total price of production factors in the production process of the enterprise itself. (From the perspective of the opportunity cost of producing other uses, the cost that must be paid is the highest income factor. Otherwise, the business of manufacturers transferring production factors will become more and more profitable. ).
Economic benefit: the difference between sales revenue and total cost, also known as excess profit.
Normal profit: the motivation for manufacturers to start their own businesses.
Short-term fixed cost (FC): the price paid by the supplier for the production of constant factors in a short period of time without changing the total production cost; Long-term variable cost (VC): The manufacturer of variable parts will have a certain salary in the short term due to the change of VC and production. Total cost (TC) is the total cost paid by producers, and a certain number of products can be used for all production factors in a short time. Average fixed cost (AFC) is the average consumption of unit output, in which the production cost is constant in a short time. AFC = FC/Q, the change law, the output is small, AFC has been declining, and the decline is first fast and then slow. Average variable cost (AVC) refers to the average variable cost of a manufacturer in a short period of time, which is used to produce per unit output. Average total cost (AC) is the total cost for a manufacturer to produce a unit in a short time. Marginal cost (MC) is the increase of production cost caused by manufacturers and units in a short period of time.
Long-term total cost (LTC)LTC changes and output changes. When the output is zero, the total cost that does not exist in production also increases rapidly, then increases slowly and finally increases rapidly (short-term total cost). Long-term average cost (LAC): The manufacturer with the lowest long-term average total cost. The manufacturer with the lowest long-term marginal cost (LMC) has the lowest total long-term incremental cost.
The scale of the internal economy began to expand production, and the performance of the expanded production scale was improved. Uneconomical (external economy) scale: When production expands to a certain scale, manufacturers will continue to expand production scale and the economy will decline.
Chapter VI Perfect Competition Market
Interactive market: buyers and sellers can agree to each other and the form of transaction price, their organization or institutional arrangement.
Market: perfect competition market, monopoly competition market, oligopoly market and monopoly market.
Industry: Commodity market produced, all commodities provided by all suppliers.
The market structure of a perfectly competitive market does not charge any obstacles or interference factors.
Sales revenue: the manufacturer's income.
Total revenue (TR): the total revenue of the supplier's products at a certain price.
Average revenue (AR): the supplier revenue of the supplier of the unit product.
Marginal Revenue (MR): With the increase of sales, the total revenue of suppliers.
Producer surplus: the difference between the total remuneration actually received by the manufacturer and the minimum remuneration that the manufacturer is willing to accept for providing a certain number of products.
Changes in the cost of industrial output value of domestic demand in the same industry and changes in production factors do not affect the prices of production factors.
Industries with increasing costs: The growth of industrial production will lead to the increase in the price of production factors due to the increase in demand for production factors.
Industries that reduce costs: the increase in demand for production factors caused by the increase in industrial output value will lead to a decline in the price of production factors.
Chapter VII Perfect Competition Market
Monopolistic market: an industry with only manufacturers, as a whole market organization.
Price discrimination: the same product is sold at different prices.
Price discrimination (full price discrimination): the highest price that consumers are willing to pay for each unit of products sold by manufacturers.
Second price discrimination: only the prices of different consumer groups are required.
Degree of price discrimination: Monopolists charge different prices and the same product is in different markets (or different consumer groups).
Monopoly competitive market: Many supplier differences in the market are equivalent to the production and sales of products.
The total mass production market of the production group is very close to the manufacturers of similar products.
The long-term average cost of a perfectly competitive enterprise with ideal production is the lowest point of LAC curve.
The difference between the actual output and the ideal rate of return.
Non-price competition: monopoly competition, manufacturers usually expand market share by improving product quality, careful design, trademark and packaging, improving sales service and advertising.
Oligopoly market, also called oligopoly market. Production and market organization means that few companies control the whole market.
Dominant strategy: what kind of strategy, regardless of other participants, the player's optimal strategy is the dominant strategy.
Game equilibrium: a relatively static state in which all participants do not want to change their strategies in the game.
Advantage strategic balance: balance all participants in the advantage strategic game.
No player will change his optimal strategy Nash equilibrium: if other players don't change their optimal strategy.
Static game: a game in which each player's strategy choice and the equilibrium result of the whole game will determine that each player will no longer have any influence on the outcome of the game.
Dynamic game and repeated game.
Repeat the game: the same wave structure is repeated many times. This is a dynamic game.
"tit for tat" strategy: all members who start to cooperate. For each member, he only needs the cooperation of other members, and the cooperation between the two sides will continue. However, as long as there is a strategic cooperation agreement with time and uncooperative members are adopted, other members will adopt the "eye for an eye" strategy of punishment and revenge, and cooperate with other members to do the same strategy, and this uncooperative strategy and repeated game will continue to undermine the punishment and revenge shown in the agreement.
Chapter VIII Determinants of Production Price of Demand Side.
Factors of production are divided into three categories: price factors of production, namely land, labor and capital. The prices of these three factors of production are called rent, wages and profits.
The reason is that the demand of manufacturers for production factors is the demand of direct consumers of products. Therefore, western scholars believe that the demand for production factors is a "derivative" demand and a "pilot" demand.
In a perfectly competitive product market and factor market, a perfectly competitive manufacturer.
Marginal product value (VMP): When the user adds a factor, it completely competes with the manufacturer's marginal income.
Marginal factor cost (MFC): incremental cost and incremental factor, that is, the cost ratio of derivative part.
Marginal income product (MRP): refers to the monopoly of the seller who uses unit to increase income. product
The seller monopolizes the market (as the seller), while the manufacturer monopolizes but completely competes with the elements of the market (as the buyer).
Purchase monopoly: the monopoly factor of the manufacturer in the factor market (as the buyer) (as the seller's product, but the product on the market) is a complete competitor.
Nine supply
The labor supply curve determines that only when other conditions remain unchanged, the prices of production factors remain unchanged, and the wages of workers are willing and able to work for a certain period of time.
"Resources": Eliminate all surplus resources supplied by production factors to the market.
Extension line price: the point where the initial state of the rotating budget wound E (for consumers) is tangent to the indifference curve, also known as the geometric point of the PEP curve.
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Leisure time: the time and labor supply for all activities except sleeping time.
Wage rate is the influence of substitution effect, that is, the substitution relationship between the change of wage rate of workers and the consumption of tourism and leisure products.
Wage rate, income effect of wage rate change, workers' income and working hours.
Interest rate interest rate: the price of capital is the price of funds used by manufacturers to provide "services" in the production process.
The capital economic system itself, as well as for further production input, produces more products and services related to land and labor as production factors.
Rent: the price of general resources and the supply is fixed.
Short-term income (rate) of quasi-lease
Economic rent is an element of fixed resources or production factors, and the elements subtracted from total income will not affect the elements provided. This is because the demand increases, and the manufacturer's factors can be reserved element attacks, but at least the balance of fees must be paid.
Lorenz curve: a curve reflecting the average income distribution of society.
Euler theorem: Under fully competitive market conditions, the rate of return on scale remains unchanged, which is sufficient for the distribution of various production factors of the whole product, but not too large. This theorem is also called the distribution exhaustion theorem.
The Gini coefficient of Lorenz curve index reflects the equality of income distribution.
Chapter II General Equilibrium Theory and Welfare Economics
Local equilibrium analysis of local equilibrium and general equilibrium: suppose that in other markets, the supply and demand analysis (economic unit) of market price changes are carried out respectively.
Partial equilibrium: it is assumed that the market conditions of single market or single factor market equilibrium remain unchanged.
Generally balanced economy, all economic units and markets are in a state of equilibrium.
Walras's Law: When considering all market segments, regardless of the sum of commodity prices, all expenditures must be equal to the total economic income.
The production possibility curve is a collection of technologies and resources produced by an economy, also known as product transformation curve, provided that both products are big producers.
Pareto optimal state (economic efficiency): impossible. Under the condition of redistributing resources, the economic and social conditions of other members will not be affected and will be improved.
Pareto improvement: a situation where resources can be redistributed, and at least one person is not anyone.
Contract curve: the curve exchanges the contract curve (or efficiency curve) and the production contract curve (or efficiency curve). The curve represents the set of foreign exchange contracts for the optimal allocation of two products between consumers. The production contract curve represents the set of optimal configuration states of two elements between two manufacturers.
Chapter II XI Market Failure and the Reality of Microeconomic Policy
The capitalist market mechanism with market failure cannot lead to the effective allocation of resources, and the free market deviates from Pareto optimal equilibrium many times.
Price control: Assuming that the government monopolizes the industry through price control and provides a price monopolist, and the price is controlled or the price ceiling is lower than the market, the monopoly enterprise will get a certain amount of excess profit determined by the principle, but the profit is lower than the excess profit determined by the monopolist's independent pricing. The supplier with the highest price stipulated by the government is equal to the market demand of the manufacturer, and the marginal cost of independent pricing is lower than the regulated price, which is a suitable choice.
In natural monopoly industries, the scale of production controls the so-called natural monopoly and economies of scale, the scope is gradually narrowing, the output is increasing, and the average cost is relative to the market demand.