Glamor Economics

Chapter 10

Chapter 2 Section 3 Smarter than a parrot, you can learn economics well
Although economics is complicated, it is not difficult to learn it.American economist Samuelson said that if a parrot can be taught to say the words "demand" and "supply", the parrot can become an economist.A Harvard student told a story online that he claimed was true.

One day, when class was about to begin, a student hurried to the teaching building, but the elevator was very tight at this time, and he found that the Nobel laureate in economics, Arrow, was also waiting for the elevator to go upstairs on the first floor.However, several elevators went to the basement one after another, and the student exclaimed: "Really, why does everyone in the basement have to go upstairs to join in the fun at this time!" Ah Luo immediately corrected him seriously: "You put Supply and demand are getting mixed up."

Although this is a joke, it shows us that the analysis method of demand and supply is a unique way of thinking in economics. It needs to analyze problems from the perspective of supply and demand, and it has become a common analysis paradigm for economists.

Economics is mainly divided into microeconomics and macroeconomics.Microeconomics studies the economic behavior of individuals in the market, that is, the economic behavior of a single household, a single firm, and a single market.Starting from the basic concept of resource scarcity, it believes that the code of conduct of all individuals is to try to use limited resources to obtain the maximum harvest, and thus examines the conditions for individuals to obtain the maximum harvest.

The core issue of microeconomics research is how to efficiently allocate given economic resources to various uses.In a market economy, a large number of producers produce a wide variety of commodities, and market prices guide the direction of resource allocation, making the optimal allocation of scarce resources.Since market supply and demand are the basic forces that determine market prices, the analysis of supply and demand is the logical starting point for the general theoretical analysis of modern western economics.

Macroeconomics is relative to microeconomics.Macroeconomics is John?Maynard?A branch of economics that has developed rapidly since the publication of Keynes' "General Theory of Employment, Interest, and Money".Macroeconomics takes the activities of the overall process of the national economy as the research object, because it mainly examines economic aggregates such as the total level of employment and gross national income. Therefore, macroeconomics is also called employment theory or income theory.Macroeconomics and microeconomics are not separate, and macroeconomics is developed on the basis of microscopic basic thinking.But the macro is different from the micro.The microscopic study is how an organization, department or individual makes decisions in the economy and society, and what impact these decisions will have on the economy and society.The macro is to study how the entire economic society operates, and to find ways to make the economic society operate more stably and develop faster.Of course, the study of macroeconomics should also pay attention to the analysis of demand and supply.

As a science that explains social reality, economics mainly comes from life.Its core theory is not complicated, as long as you understand the relationship between supply and demand.As long as you think more in your daily life and practice diligently, ordinary people can become masters in economics.

(End of this chapter)