10 principles of economics by gregory mankiw pdf

... opportunity cost of 1 pair of ballet slippers for Fred? a 1/3 pair of tap shoes b 1/5 pair of tap shoes c 3/5 pair of tap shoes d 5/3 pairs of tap shoes 16 Refer to Figure 3-1 Which of the following ... quarter of 2010, and then ate at restaurants every day in the second quarter of 2010 What is the impact on GDP of Sally's change of 14 If Susan decides to change the oil in her car herself instead of ... inventory of 25 cars in 2009 How will the sale of all 25 cars, in 2010, affect the GDP? a The value of the cars will be counted as part of GDP in 2009, but not in 2010 b The value of the cars

Ngày tải lên: 29/11/2021, 21:40

... an outward shift of the production possibilities frontier F Microeconomics and Macroeconomics 1 Economics is studied on various levels a Definition of microeconomics: the study of how households ... Students should be asked to calculate the opportunity cost of increasing the number of mp3 players produced by 100:  between 0 and 100  between 100 and 200  between 200 and 300  between 300 and ... such as the Office of Management and Budget, the Department of Treasury, the Department of Labor, the Congressional Budget Office, and the Federal Reserve 4 The research and writings of economists

Ngày tải lên: 17/12/2020, 17:38

... treatment of capital gains—the profits made by selling an asset for more than its purchase price Sup-pose that in 1980 you used some of your savings to buy stock in Microsoft Corpo-ration for $10 ... the job of the Bureau of Stan-dards—to ensure the reliability of a commonly used unit of measurement When the Fed increases the money supply and creates inflation, it erodes the real value of the ... there are costs of changing prices. Costs of price adjustment are called menu costs, a term derived from a restaurant’s cost of printing a new menu Menu costs include the cost of deciding on new

Ngày tải lên: 15/12/2013, 11:15

... surprising: When firms choose to produce a smaller quantity of goods and services, they lay off workers, expanding the pool of unemployed Panel (c) of Figure 31-1 shows the unemployment rate in the U.S ... I O N S Our model of short-run economic fluctuations focuses on the behavior of two vari-ables The first variable is the economy’s output of goods and services, as mea-sured by real GDP The second ... vertical at the natural rate of output. Trang 10the minimum wage substantially, the natural rate of unemployment would rise, and the economy would produce a smaller quantity of goods and services As

Ngày tải lên: 24/12/2013, 17:15

... market of 500,000 potential readers It is a matter of simple arithmetic to solve Readalot’s problem At a price of $30, Readalot sells 100,000 copies, has revenue of $3 million, and makes profit of ... makes profit of $1 million At a price of $5, it sells 500,000 copies, has revenue of $2.5 million, and makes profit of $500,000 Thus, Readalot maximizes profit by charging $30 and forgoing the opportunity ... costs of production Pri-vate owners have an incentive to minimize costs as long as they reap part of the benefit in the form of higher profit If the firm’s managers are doing a bad job of keeping

Ngày tải lên: 21/01/2014, 23:20

... rate of interest, the rate of unemployment, the level of real national income, the real quantity of money, the rate of growth of real national income, or the rate of growth of the real quantity of ... Effects of Low Unemployment CHAPTER 33 THE SHORT-RUN TRADEOFF BETWEEN INFLATION AND UNEMPLOYMENT 767 growth or decline in nominal national income, the rate of growth of the quantity of money. ... paper denying the existence of a long-run tradeoff between inflation and unemployment. Friedman and Phelps based their conclusions on classical principles of macro- economics, which we discussed

Ngày tải lên: 21/01/2014, 23:20

... loss of monopoly caused by the markup of price over marginal cost In addition, the number of firms (and thus the variety of products) can be too large or too small In practice, the ability of policymakers ... three-fourths of it in the form of wages and fringe benefits The rest went to landowners and to the owners of capi-tal—the economy’s stock of equipment and structures—in the form of rent, profit, and ... about the number of workers it has or the number of apples it pro-duces It cares only about profit, which equals the total revenue from the sale of Quantity of Apples 0 Price of Apples P Q Demand

Ngày tải lên: 26/01/2014, 18:20

... relationship of the measure of a given good to the run of goods in eral.”gen-14“The true measure of the value of a good is found by dividing the magnitude of the good in question into the magnitudes of ... the estimation of the use value of goods cannot be found anywhere but in the fundamental elements of the concept of use value itself.” 10“Thus the magnitudes of the use value of goods depend ... of aspecies of goods, in the sense of the sum of the value to the variousmembers of society of all concrete goods of a given kind, is not anunchanging magnitude, even if the needs of the various

Ngày tải lên: 09/08/2014, 19:22

... because of the op-eration of the law of diminishing returns Because of the declining MPP,MRP also declines Important! Resources are priced just as goods and services are—by the strength of the ... intersection of the market demand andsupply of labor The supply of labor to the competitive firm of Panel A(sL) is horizontal at the wage rate of $6 This means that the firm is sosmall (say, one of 1,000 ... extended to any number of variable re-sources Table 16.3 Trang 10Chapter 17Pricing of Wages, Rent, Interest, and Profits Trang 11The level of real wages depends on the produc-tivity of labor Real wages

Ngày tải lên: 09/08/2014, 19:22

... c h tHird edition Trang 2Principles ofECONOMICS A STREAMLINED APPROACH T H I R D E D I T I O N Trang 3A Streamlined Approach for: Principles of Economics, Principles of McConnell, Brue, and Flynn ... editions of Principles of Economics and Con-nect in their microeconomics (Kate) and macroeconomics (Ori) classes Our expanded team of authors has enabled us to increase the quality and range of digital ... 101 Thinking about Supply: The Importance of Opportunity Cost 102 Individual and Market Supply Curves 103 Profit-Maximizing Firms in Perfectly Competitive Markets 105 Profit Maximization 105

Ngày tải lên: 07/08/2019, 16:01

... earn lower profits • In general – Consumers are helped by imports – Domestic producers of imported goods are hurt by Trang 15Resistance to International Trade • Suppose Brazil exports coffee to ... the US – Price of coffee in Brazil increases, hurting domestic consumers – Producers of coffee benefit from a higher price and a larger market • In general – Consumers are hurt by exports – Domestic ... components of the social safety net Trang 2Health Care Delivery• Health care spending has grown faster than income – Up from 4% of national income in 1940 to 16% in 2010 – Part of the increase

Ngày tải lên: 03/02/2020, 19:24

... Money has three functions in the economy: • Medium of exchange • Unit of account • Store of value Trang 5The Functions of MoneyTrang 6The Functions of MoneyTrang 7The Functions of Money• Liquidity • Liquidity is the ease with which an asset can be  ... RESERVE Trang 15The Fed’s Organization• The Fed is run by a Board of Governors, which  has seven members appointed by the president  and confirmed by the Senate. Trang 16The Fed’s OrganizationTrang ... converted into the economy’s medium of exchange Trang 8The Kinds of MoneyTrang 9Money in the U.S Economy• Currency  is the paper bills and coins in the  hands of the public. • Demand deposits 

Ngày tải lên: 04/02/2020, 00:20

... Subsidized Demand Subsidy 12 8 14 10 16 Trang 30Tragedy of Commons• When use of a communally owned resource has no price, the costs of using it are not considered – Use of the property will increase ... Costs of Shared Living Total Cost of Separate Apartments Shared Apartment Total Cost of Rent Savings from Sharing § Live together if the benefits exceed the costs Problem Ann's Cost of Solving ... bidder pays $100 for the right to use the commons Trang 35The Effect of Private Ownership• The winning bidder starts the year – Spends $100 in savings to buy a yearling steer – Borrows $100 at 13%

Ngày tải lên: 04/02/2020, 23:31

... and discuss why the optimal amount of an externality is almost never zero 4 Illustrate the tragedy of the commons and show how private ownership is a way of preventing it 5 Define positional ... 10 Trang 2Learning Objectives1 Define negative and positive externalities and analyze their effect on resource allocations 2 Discuss and explain the Coase Theorem 3 Explain how the effects of ... external cost is a cost of an activity that falls on people other than those who pursue the activity • An externality is the name given to an external cost or external benefit of an activity • An

Ngày tải lên: 01/04/2021, 17:20

... chapter 1-5 Mankiw Principles of EconomicsIntroduction to Micro Economics (International University - VNU-HCM) Solutions to chapter 1-5 Mankiw Principles of Economics Introduction to Micro Economics ... takes Maria two hours to read 100 pages of sociology In that time, she could read 40 pages of economics So the opportunity cost of 100 pages of sociology is 40 pages of economics 3 a Workers needed ... cars or 10 tons of grain, the opportunity cost of 1 car is 2½ tons of grain, which is 10 divided by 4 Since a Japanese worker produces either 4 cars or 5 tons of grain, the opportunity cost of 1

Ngày tải lên: 26/09/2022, 22:38

... popular movie of all time? The answer might surprise you. Movie popularity is usually gauged by box office receipts By that measure, Titanic is the No 1 movie of all time, followed by Star Wars, ... correct for the effects of inflation. Government statistics show a consumer price index of 15.2 for 1931 and 166 for 1999 Thus, the overall level of prices has risen by a factor of 10.9 (which equals ... well-being of others? Explain. 2 Suppose that the residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots In 2001 they buy 100 heads of cauliflower for $200, 50 bunches of

Ngày tải lên: 08/11/2013, 00:15

... produce more of all types of goods and services Thus, one way to raise future pro-ductivity is to invest more current resources in the production of capital One of the Ten Principles of Economics ... some sense of how much the level and growth of living standards vary around the world Second, we examine the role of productivity—the amount of goods and services produced for each hour of a work-er’s ... experienced more rapidly growing productivity Indeed, one of the Ten Principles of Economics in Chapter 1 is that a country’s stan-dard of living depends on its ability to produce goods and services

Ngày tải lên: 08/11/2013, 00:15

... ability by encouraging rapid accumulation of the factors of production and ensuring that these factors are employed as effectively as possible. Trang 10Economists differ in their views of the role of ... takes some of this additional income back to the United States in the form of profit Sim-ilarly, when an American investor buys Mexican stock, the investor has a right to a portion of the profit that ... income of Mexicans (measured by GNP) by less than it raises the production in Mexico (measured by GDP). Nonetheless, investment from abroad is one way for a country to grow Even though some of the

Ngày tải lên: 08/11/2013, 00:15

... the various mixes of output that an economy can produce It illustrates one of the Ten Principles of Economics in Chapter 1: People face tradeoffs Here the farmer faces a tradeoff between produc-ing ... ac-tivities of millions of people with varying tastes and abilities As a starting point for this analysis, here we consider the reasons for economic interdependence One of the Ten Principles of Economics ... pounds of potatoes If you give me 1 of those 4 pounds,I’ll give you 3 pounds of meat in return In the end, you’ll get to eat 3 pounds of potatoes and 3 pounds of meat every week, instead of the

Ngày tải lên: 15/12/2013, 11:15

... is temporarily high. How does this baby boom affect the price of baby-sitting services in 2 010 and 2020? (Hint: 5-year-olds need baby-sitters, whereas 15-year-olds can be baby-sitters.) 7. Ketchup is a ... responsiveness of quantity demanded or quantity supplied to one of its determinants price elasticity of demand a measure of how much the quantity demanded of a good responds to a change in the price of that ... dramatically alter the number of times they go to the doctor, although they might go somewhat less often. By contrast, when the price of sailboats rises, the quantity of sailboats demanded falls...

Ngày tải lên: 15/12/2013, 11:15