Microeconomics

Author: Liu Xiuguang
Publisher:
Publish Date: 2003-09-01
Features: The basic feature of this book is to highlight the "orderliness" and "symmetry" inherent in the fundamental categories and principles of economics. This is because economic life is not chaotic but follows certain patterns and rules, and the orderliness and symmetry of the fundamental categories and principles of economics are reflections of these patterns and rules in economic life. In terms of orderliness, supply and demand are the foundation of all economics, and the book expands on microeconomic analysis of consumers, producers, costs, income, markets, etc., as well as macroeconomic analysis of aggregate supply and aggregate demand, national output, money and banking, product markets and money markets, fiscal policy and monetary policy, unemployment and inflation, etc. From the perspective of symmetry, there are both microeconomic and macroeconomic issues in economics; budget lines and indifference curves, as well as isocost lines and isoquant lines, are used to analyze the equilibrium of consumers and producers; the peak of the business cycle corresponds to the trough; measures to combat inflation often lead to deflation, and so on. There is also, "Aggregate demand and aggregate supply are the two blades of a pair of scissors, and the level of output and employment is jointly determined by the two blades of this pair of scissors" (Samuelson); the unemployment rate and inflation rate together constitute society's pain index; fiscal policy and monetary policy are the indispensable two major tools for stabilizing the economy; only when countries have trade and financial relations can there be international economics, i.e., open macroeconomic models, and so on. The book also introduces the research objects of economics and the basic principles of microeconomics, such as the supply and demand theory, consumer behavior theory, producer behavior theory, cost theory, and price determination theory, etc.