1 1 3 4 4 5 6 6 7 2 11 3 13 13 14 : 15 2 18 3 25 (Demand) : 29 30 3 31 : 31 34 : 35 : 36 38 (Supply) : 39 40 ( 1 )

41 42 42 43 47 4 57 : 61 5 63 67 69 : 71 : 72 : 72 5 74 76 77 78 82 5 89 : 93 93 94 4 95 99 ( 2 )

: 100 2 101 3 101 (MRS) 105 (PCC) 107 (ICC) 108 : 109 110 6 117 : 121 123 (AP) (MP) 126 126 : 127 (ISQ) 127 (MRTS) 129 (ISC) 130 3 131 (Producer s Equilibrium) 132 132 133 133 134 ( 3 )

: 136 137 138 : 139 , 139 140 : 3 146 7 : 155 : 157 159 161 161 167 170 8 175 : 179 179 180 183 185 186 187 188 : 190 191 ( 4 )

194 9 201 204 207 209 : 210 : 211 : 213 : 214

( 5 )

1

1. 2. 3. 4. 5. 6. 7. 1. 2 (1) (2) 2. 3. 4. 2 (1) (2) 2 . . 5. (1) (Deductive Method) (2) (Inductive Method) EC 111 1

6. (Economic Variables) : (1) (Stock variable) (2) (Flow variable) 7. ..1776 ..2454 8. 3 (1) (2) (3) 1

1. 2.

3. 2 4. 2 5. 2

6.

7. 2 EC 111

1.1 (Economics) Oikos (House) Nemein (House Management) (Alfred Marshall) (A.C. Pigoue) (Lionel Robbins) (Pual A Samualson) (scarcity) 2 (1) (2) EC 111 3

1.2 Wealth of Nation (Adam smith) ..1776 (John Maynard Keynes) The General Theory of Employment Interest and Money .. 1936 2 (1) (Microeconomics) : (Demand) (Supply) (2) (Macroeconomics) : (Aggregate) 1.3 2 ( ,2525, 7-8)

(1) (Empirical Approach) :

(2) (Analytical Approach) : 2 4 EC 111

) (Positive Economic) :

) (Normative Economic) : (Welfare Economic) (policy) (Goals) 1.4 (Theoritical Methodology) (1) (2) (3) (4) 2 (1) (Deductive Method) : . (Assumption) (Closed economies) . (Logical and Hypothesis Analysis) . (Testing and conclusion) : EC 111 5

(2) (Inductive Method) : ( ,2548, 12 ) . . . 1.5 (Economic Variables) (variables) 2

(1) (Stock Variables) :

(2) (Flow Variables) : (Capital Accumulation) 1.6 ..1700 (Scienecs) 2 (Natural sciences) (Social sciences) ..1776 (Adam Smith) ( Wealth of the Nations) 6 EC 111

..1936 (John Maynard Keynes) (The general Theory of employment ,Interest and Money ) () (Monetary School of Economics) , (Supply side Economics) , (Rational Expectation Econonics) ..2454 1.7 3 EC 111 7

(1) :

(2) : (3) :

8 EC 111

1. (1) (2) (3) (4) 2. (1) (2) (3) (4) 3. (1) (2) (3) (4) 4. 7 5 (1) (2) (3) (4) 5. 5 (1) (2) (3) (4) 6. 31 2552 3.6 (1) (2) (3) (4) EC 111 9

7. 2552 3.2 (1) (2) (3) (4) 8. (1) (2) (3) (4) 9. (1) (2) (3) (4) 10. (1) (2) (3) (4) 11. (1) (2) (3) . (4) 12. (1) (2) (3) (4) 1 ( 1 ) 2 ( 4 ) 3 ( 2 ) 4 ( 1 ) 5 ( 4 ) 6 ( 1 ) 7 ( 4 ) 8 ( 3 ) 9 ( 4 ) 10 ( 3 ) 11 ( 2 ) 12 ( 3 ) 10 EC 111

2

1. 3 2. 3. 4. : 5. 2

1. 3 (1) (2) (3) 2. (1) : (2) : (3) (, ) : (4) :

3. :

4. : (1) (2) (3) EC 111 11

5. 2 (1) 3 , (2) 4 , ,

1. 2. :

3. 3 4. : 2 12 EC 111

2.1 (Basic Economic Problems)

(1) (2) (3)

. : . : 2.2 (Economic Resources)

(1) (Land and Natural Resources) :

(2) (Labor) : 2 ( 15 60 ) EC 111 13

(3) (Capital) :

(4) (Entrepreneur) : 3 2.3 (Goods) 2.3.1. : 2 . (Private goods) . (Public goods) (1) (2) (3) 2.3.2. : 2 . . 14 EC 111

2.3.3 : 2 . (Economic goods) . (Free goods) 2.3.4. : 3 . (Primary Product) . (secondary Product) . (tertiary Product) 2.3.5. : (Normal goods) (Inferior goods) 2.4 : 2 (1) (2) EC 111 15

(Household) : 4 (Bussiness Firm) : , , (Government unit) : 2.1

16 EC 111

2.1

2.2

2.1 - EC 111 17

2.6 (Economic System) ( ,2549, 17) 2

(1) 3 . (Pure Capitalism) : (Asset) (market system) (Invisible Hand) (Laissez Faire) 18 EC 111

. (Pure Command System) : (Public) (Communism) Collective choice () . (Mixed Economies) :

2.3 (2) 4 : EC 111 19

. (Market capitalism) : . (Centrally Planded Socialism) : .1980 . (Centrally Planded Capitalism) : WW II . (Market Socialism) : .1950-1960

2.4 (Market) (Command)

Private State 20 EC 111

2 21 ( ) ( ) 21 EC 111 21

2 1. (1) (2) (3) (4) 2. (1) (2) (3) (4) 3. (1) (2) (3) (4) 4. (1) (2) , (3) (4) 5. (1) (2) , (3) (4 ) 6. (1) (2) (3) (4) 7. (1) (2) (3) (4) 8. (1) (2) (3) (4) 22 EC 111

9. (1) (2) (3) (4) 10. (1) (2) (3) (4) 11. (1) (2) (3) (4) 1 ( 1 ) 2 ( 2 ) 3 ( 3 ) 4 ( 4 ) 5 ( 1 ) 6 ( 2 ) 7 ( 3 ) 8 ( 1 ) 9 ( 2 ) 10 ( 4 ) 11 ( 3 ) EC 111 23

3

1. (Demand) 3 : : 2. (Supply) 3. 4 4. EC 111 25

1. 2. 3. 4. 5. 2 (1) (move along the Curve) (2) (shift) 6. 2 (1) (Normal goods) : (2) (Inferior good) : 7. 2 (1) (Complementary goods) : (2) (Substitution goods) : 26 EC 111

8. 9. (Supply) 10. 11. 12. 13. 2 (1) (2) 14. 15. 4 (1) - () (2) -() (3) (4) - 16. 2 (1) (Excess Supply) (2) (Excess Demand) EC 111 27

3

1. 2.

2 3. : 2

4. : 2

5.

6.

7. -

8. 28 EC 111

3.1 (Demand) (willing)(ability to pay) ( ) (Effective demand) (want) 3.1.1

(1) (2) (3) (4) (5) (6) (7)

: (Law of Demand) (Other Thing Being Equal) : EC 111 29

: 2 () (Tastes) : (Expectation) : (Size of Population) : (Seasonal Factors) : 3.1.2. (Demand Function ) (Qx) Qx = f ( Px , Y , Py , T , E , P , S ) Qx X Px X Py Y T E P S 30 EC 111

3.1.3. 3 (1) (Price Demand) : (Demand)

f(Px)xdQ DxxdQ X X Px Qx (Linear Relationship) bPxaxQ d X xQd Px X a b EC 111 31

3.1 X Px 10 A 5 B D Qx 0 80 120 3.1 D 10 80 5 120 : (slope) 3.1 (Demand Schedule) 3.1

32 EC 111

3.1 X ( Px) X (Qx) : :

1 10 2 8 3 6 4 4 5 2

3.1 3.2 3.2 X Px 5 E 4 D 3 C 2 B 1 A D Qx 0 2 4 6 8 10 EC 111 33

(Change in Quantity Demand) (Change in Demand)

(1) : (Move along The Curve) X 1 / 10 A B , C , D E 5 / 2 D (Qx) (Px)

(2) : (Shiff) 3.3 3.3 (Shift) Px P0 D2 D0 D1 Qx Q2 Q0 Q1 3.3 D0 D1 D0 D2 () 34 EC 111

(2) (Income Demand) : Qx = f ( Y ) Qx X Y 2

. (Normal goods) : 3.4 3.4 Y D 10,000 5,000 Qx 0 1 2 3.4 5,000 1 10,000 2

. (Inferior goods) : 3.5 EC 111 35

3.5 Px 6,000 4,000 D Qx 10 30 3.5 4,000 30 6,000 10

(3) (Cross Demand) :

QA = f ( PB) QA A PB B 2 . (Complementary goods) : 2 3.6 36 EC 111

3.6 (PB) 40 30 D 0 (QA) 1 2 3.6 2

40 1 30 (PB) (QA) . (Substitution goods) : 3.7 (PB) D 110 90 0 (QA) 2 3 3.7 90 / 2 110 / 3 / EC 111 37

3.1.4. (Individual Demand) (Market Demand) 3.2 Px Qx Qx Qx 5 10 5 15 30 4 20 10 18 48 3 30 15 21 66 2 45 20 24 84 1 50 25 27 100

3.8 A Px Px Px 5 5 5 D1 D2 D3 Qx Qx Qx 0 10 5 15 38 EC 111

B Px 5 D 0 Qx 30 3.8 A 10 ,5 15 5 3 B 5

30 3.2 (Supply) 3.2.1 :

(1) (2) (3) (4) (5)

Qx X Px X Py Y C X EC 111 39

Te X CL Qx = f ( Px , Py , C , Te , CL , ) Px x = f ( Px ) sQ (Linear Function) x = a + b Px sQ 3.2.2. (The law of Supply)

3.2.3. (Supply schedule and Supply Curve) 3.3

(Px) (Qx) 1 10 2 20 3 30 4 40 5 50 40 EC 111

3.9 Px S P2 P1 Qx Q1 Q2 3.9 P1 Q1 P2 Q2 3.2.4. X X 2 2 3.4 3.4 X X X X 1 10 0 10 3 20 5 25 5 30 10 40 7 40 15 55 9 50 20 70 3.4 EC 111 41

3.10 A B Px SA Px SB Px S 5 5 5 Qx Qx Qx 0 30 0 10 0 40 3.10 5 A B 30 , 10 40 3.2.4. 2

(1) (Change in quantity Supply) : - - 3.11 3.11 Px S P2 P0 P1 Qx Q1 Q0 Q2 42 EC 111

(2) (Change in Supply) : (Shift) 3.12 Px S2 S0 S1 P0 Qx Q2 Q0 Q1 3.12 S0 P0 Q0 S2 Q2 S1 Q1 3.3 (Market Equilibruim) - EC 111 43

2 3.5 3.13 , 3.5 :

/ / /

20 15 12 9 6 3

8 14 20 26 32

28 24 20 16 12

10 10 20

3.13 () S 12 A B E 9 D 0 -( ) 14 20 24 44 EC 111

3.13 12 / 24 14 / (Excess Supply) 10 / 9 / 20 / E 6 / 26 / 16 / 10 / 9 / 20 / 3.3.1. : 4 (1) ( ) . 3.14 . P S P S P1 P0 P0 P2 D0 D1 D2 D0 0 Q 0 Q Q0 Q1 Q2 Q0 (shift) (shift) D0 D1 D0 D2 P0 P1 P0 P2 Q0 Q1 Q0 Q2 EC 111 45

(2) ( ) . 3.15 . P S0 P S2 S1 S0 P0 P2 P1 P0 D D 0 Q 0 Q Q0 Q1 Q2 Q0 (Shift) (Shift) S0 S1 S0 S2 P0 P1 P0 P2 Q0 Q1 Q0 Q2 (3) ()

3.16 P S1 S0 P1 E1 P0 E0 D1 D0 0 Q Q0 3.16 D0 S0 P0 Q0 E1 P0 P1 46 EC 111

(4) () 3.17

P S0 E0 S2 P0 P2 E2 D2 D0 0 Q Q0 3.17 D0 S0 E0 P0 Q0 D2 S2 E2 P2 Q0 3.4 EC 111 47

3.4.1. (Price Floors): 2

(1) (Excess Supply) :

3.18 : / S 12,000 a b 10,000 E0 D 0 : 6 8 10 3.18 D S 2 E0 10,000 ( 12,000 ) 8 48 EC 111

9,500 12,000 6 10 ab (Excess supply)4 48,000

(2) : 3.19 / S 12,000 a b 10,000 E 8,000 D 0 8 10 : EC 111 49

3.19 12,000 10 8,000 4,000 40,000 ( )

3.4.2. (Price Ceilings) : 3.20 / S 25 20 E0 15 a b D 3 5 7 : 3.20 D S 2 E0 20 / 5 50 EC 111

15 / 3 7 / 4 ( 25 ) 2 (1) :

3.21 : / S 20 E0 15 A B D1 D0 0 : 3 5 7 3.21 D0 S0 E0 20 / 15 / 3 7 / (AB) 4 3 / 2 / D1 A EC 111 51

(2) : 4 15 5 52 EC 111

1. (1) (2) (3) (4) 2. (1) (2) (3) (4) 3. (1) (2) (3) (4) 4. (1) (2) (3) (4) 5. (Normal goods) (1) (2) (3) (4) 6. (1) (2) (3) (4) (1) (2) 7. (1) (2) (3) (4) EC 111 53

8. (1) (2) (3) (4) 9. (1) (2) (3) (4) 10. (1) (2) (3) (4) 11. (1) (2) (3) (4) 12. E () (1) (2) - (3) - (4) - 13. E

(1) - (2) - (3) - (4) -

14. - (1) (2) (3) (4) 54 EC 111

E0 15. (1) (2) (3) (4) 16-17 ( P) S P0 E D 0 Q0 (Q)

16. (1) (2) (3) (4)

17. (1) (2) (3) (4)

18. (1) (2) (3) (4)

19. (1) (2) (3) (4)

20. (1) (2) (3) (4) EC 111 55

1 ( 1 ) 2 ( 2 ) 3 ( 4) 4 ( 4 ) 5 ( 2 ) 6 ( 2 ) 7 ( 4 ) 8 ( 3 ) 9 ( 4) 10 ( 1) 11 ( 3 ) 12 ( 4 ) 13 ( 4 ) 14 ( 3 ) 15 ( 2 ) 16 ( 2 ) 17 ( 1 ) 18 ( 1 ) 19 ( 2 ) 20 ( 3 ) 56 EC 111

4

1. (Elasticity of Demand) 5 (TR) 2. (Elasticity of Supply) 5 3. : :

1. 2. EC 111 57

3. 5 (1) Ed = 0 (2) Ed < 1 (3) Ed = 1 (4) Ed > 1 (5) Ed = 4. 5. : 6. (Ey) 2 (Normal goods) (Inferior goods) 7. (+ ) ( - ) 8. (Exy) 2 9. (+ ) ( - ) 10. (Es) 11. ( + ) 58 EC 111

12. 5 (1) Es = 0 (2) Es < 1 (3) Es = 1 (4) Es > 1 (5) Es = 13. (1) (2) 14. 5 15. 5 4 1. 2. 5 3. (TR) 4. EC 111 59

5. 6. 7. 5 8. 60 EC 111

(Elasticity of Demand) 4.1 3 4.1.1. ( Price Elasticity of Demand:Ed) (Point) (Arc) 4.1 P P2 B P1 A D Q Q2 Q1 (Ed) = Ed ( A) = Q . P. P Q P = P1 , Q = Q1 Q = Q2 Q1 P = P2 - P1 Ed ( A B) = Q . . P1 + P2 . P Q1 + Q2 EC 111 61

(Absolute Term) 25 / 30 30 20 (Ed) (Point Elasticity of Demand) Ed = Q . P . P Q P P1 Q Q1 P1 = 25 P2 = 30 Q1 = 30 Q2 = 20 Q = Q2 Q1 = 20 - 30 = - 10 P = P2 - P1 = 30 - 25 = 5 Ed = - 10 . 25 . = - 5 . 5 30 3 Ed = - 1.66 1 1.66 (Elastic) 62 EC 111

(Arc Elasticity of Demand) Ed = Q . P1 + P2 . P Q1 + Q2 P1 = 25 P2 = 30 Q1 = 30 Q2 = 20 Q = Q2 - Q1 = 20 - 30 = - 10 P = P2 - P1 = 30 - 25 = 5 Ed = - 10 . 25 + 30 . 5 30 + 20 Ed = - 550 . 250 = - 2.20 1 2.20 (Elastic) 5

1. (Perfectly inelastic : Ed = 0 ) (Q) EC 111 63

4.2 P D P1 P0 P2 0 Q Q0 4.2 (D) P0 Q0 P1 P2 Q0 2. (Inelastic : Ed < 1 ) 4.3 P D P2 P1 0 Q Q2 Q1 64 EC 111

4.3 P1 P2 Q1 Q2

2. (Unitary Elastic : Ed = 1 ) 1 1 Rectangular Hyperbolar 4.4 P P2 P1 D 0 Q Q2 Q1 4.4 P1 P2 Q1 Q2

3. ( Elastic : Ed > 1) 1 1 EC 111 65

4.5 P P2 P1 D 0 Q Q2 Q1 4.5 P1 P2 Q1 Q2 5. (Perfectly elastic : Ed = ) () 4.6 P P D

0 Q 66 EC 111

4.6 P0 AB A B 4.7 P A P D C Q P 0 Q E Q B 4.7 C AB C C D E D E OA OB Ed = Q . P . P Q AB C Ed = EB . EC . EC OE EC 111 67

= EB . OE Ed = CD . OD . AD OE = OD . CD = OE AD C BC . C AC Ed = EB . = OD . = BC . OE AD AC C AB AB C AC BC A B 4.8 P Ed = A Ed > 1 Ed = 1 Ed < 1 Ed = 0 0 B Q 68 EC 111

A DD DD A DD A BC/OC 4.9 P D A D 0 C B Q (Total Revenue : TR) EC 111 69

4.10 P Ed > 1 100 Ed = 1 50 C Ed < 1 0 500 1,000 Q TR Total Revenue 0 Q 500 1,000 1 1 Ed = 1 TR TR Ed < 1 TR TR Ed > 1 TR TR 2 1. Ed < 1 1 1 1 1 70 EC 111

2. Ed > 1 1 1 1 1 4.1.2 (Income Elasticity of Demand) 2 (Normal goods) (Inferior goods) Ey Ey = Y = Q = Q = Q2 - Q1 Y = Y2 - Y1 Ey (Point) (Arc) 1. Ey = Q . Y . : Y = Y1 Q = Q1 Y Q 2. Ey = Q . Y1 + Y2 . Y Q1 + Q2 Ey Ey EC 111 71

4.1.3. (Cross Elasticity of Demand : Exy) (Py) 1 (Qx) 2 (Complementary goods) (Substitution goods) Exy = X Y 1. Exy = Qx . Py . Py Qx Py = Y Qx = X Py = Y , Qx = X 2. Exy = Qx . Py1 + Py2 Py Qx1 + Qx2 Exy X Y Exy X Y

4.2 (Elasticity of Supply) 1 1 72 EC 111

4.11 P S 20 B 10 A 0 Q 150 200 (Es) Es = 1. (A) Es = Q . P . P Q P = Q = P = P1 Q = Q1 P = Q = 2. (AB) Es = Q . P1 + P2 . P Q1 + P2 Q = Q2 - Q1 P = P2 - P1 : 5 EC 111 73

(1) (Elastic) (Es > 1) 1

(2) (Inelastic) (Es < 1)

(3) (Unitary) (Es = 1)

(4) (Perfectly Inelastic) (Es = 0) (5) ( Perfectly Elastic) ( Es = ) (1) (Es > 1) : P S P1 P0 0 Q0 Q1 Q 74 EC 111

(2) (Es < 1) : P S P1 P0 0 Q0 Q1 Q (3) (Es = 1) : (Origin) P S3 S2 S1 0 Q (4) (Es = 0) : P S 0 Q0 Q (5) (Es = ) : P P0 S 0 Q EC 111 75

4.3 2 :

(1) (Specific Tax) : 4. 17 S1 ( )

) P1 S0 (

0

T P0

Q0

4.17 S0 Q0 P0 S1 P1 = P0 + T Q0 (2) (Ad-valorem Tax) : 100 / 5 5 76 EC 111

4.18 ) S1 (

) P1 T S0 (

P0

0 Q0 4.18 S0 Q0 P0 S1 P1 = P0 + T Q0 :

(1) : 4.19

) D1 ( P0 T

) D0 ( 0 Q1 Q0 EC 111 77

4.19 D0 P0 Q0 D1 Q0 Q1

(2) : 4.19 D0 ( )

) D1 ( P0 T 0 Q1 Q0 4.19 D0 P0 Q0 D1 2 Q0 Q1 : 78 EC 111

(1) (Ed = 0) 4.20 D S1 ( )

) P1 B S0 ( P0 A 0 Q0 4.20 S0 D A P0 Q0 P0 + S1 D B P1 P0 A B P1 (2) (Ed < 1) 4.21

) S1 (

) S0 ( P1 B P0 A E P2 C D

0 Q1 Q0 EC 111 79

4.21 S0 D E P0 Q0 P0 + T S1 B P1 Q1 PoBCP2 P0ABP1 P0ACP2 (3) (Ed = 1) 4.22 S1 ( )

) S0 ( P1 B P0 A E P2 C D 0 Q1 Q0 4.22 S0 D E P0 Q0 P0 + T S1 B P1 Q1 P1BCP2 P0ABP1 P0ACP2 80 EC 111

(Ed > 1) (4) 4.23 S1 ( )

) S0 ( P1 B P0 A E P2 C D 0 Q1 Q0 4.23 S0 D E P0 Q0

S1 P0 + T B P1 Q1 P1BCP2 P0ABP1 P0ACP2 P2

(5) (Ed = ) 4.24

S0 ( )

) S1 ( A E P0 D P1 B 0 Q1 Q0 EC 111 81

4.24 S0 D E P0 Q0 P0 + T S1 A P0 Q1 P0ABP1 P1 :

(Es = 0) (1) 4.25 S P0 A P1 B T D0 D1 0 Q0 4.25 D0 S A P0 Q0 D1 B P0ABP1 82 EC 111

(2) (Es < 1) 4.26 S P1 B P0 A E P2 C D0 D1 0 Q1 Q0 4.26 D0 S E P0 Q0 P0 + T P1 D 1 C Q1 P1BCP2 P0ABP1 P0ACP2 P2

(2) (Es = 1) 4.27 S P1 B P0 A P2 C D1 D0

E

0 Q1 Q0 EC 111 83

4.27 D0 S E P0 Q0 P0 + T P1 D1 C Q1 P1BCP2 P0ABP1 P0ACP2 P2 (4) (Es > 1) 4.28 S P1 B P0 A E P2 C D1 D0 0 Q1 Q0 4.28 D0 S E P0 Q0 P0 + T P1 D1 C Q1 P1BCP2 P0ABP1 P0ACP2 P2 84 EC 111

(Es = ) (5) 4.29 P1 B P0 A E S D1 D0

0 Q1 Q0 4.29 D0 S E P0

Q0 P0 + T P1 D1 A Q1 P0ABP1 P0ABP1 P0 EC 111 85

1. (1) (2) (3) (4) 2. Ed = - 2 (1) 1 2 (2) 1 2 (3) 1 2 (4) 1 2 3. (Ey) = 3 (1) 1 3 (2) 1 3 (3) 1 3 (4) 1 3 4. Ed = 0 (1) (2) (3) (4) 5. Ed < 1 (1) (2) (3) (4) 6. (1) Ed = 0 (2) Ed < 1 (3) Ed > 1 (4) Ed = 1 86 EC 111

7. (1) (2) (3) Rectangular Hyperbola (4) 8. (TR) (1) (2) (3) (4) 9. (Inferior goods) (1) (2) (3) (4) 10. (1) (2) (3) (4) 11. 2 (1) (2) (3) (4) 12. (1) (2) (3) (4) 13. (Es) (1) (2) (3) (4) 14. (Exy) (1) (2) (3) (4) 15. (1) (2) (3) (4) EC 111 87

16. (1) specific Tax (2) Ad-valorem Tax (3) (4) 17. Ed < 1 (1) (2) (3)