ten principles of economics ppt

... make a profit from this situation What would be your profit per bushel of rice? If other people exploit the same opportunity, what would happen to the price of rice in Japan and the price of rice ... dollar of its income, it can use that dollar to finance the purchase of domestic capital or to finance the purchase of an asset abroad The two sides of this identity represent the two sides of the ... economists apply the theory of purchasing-power parity to explain ex-change rates, they need data on the prices of a basket of goods available in dif-ferent countries One analysis of this sort is conducted

Ngày tải lên: 24/12/2013, 17:15

... for dollars causes the value of the dollar to appreciate from E1to E2 This appreciation of the dollar tends to reduce net exports, offsetting the direct effect of the import quota on the trade ... macroeconomic variables of an openeconomy. Panel (a) of the figure shows the market for loanable funds (taken from Fig-ure 30-1) As before, national saving is the source of the supply of loanable funds. ... U.S exports of aircraft will fall, and U.S imports of aircraft will rise In this case, the import quota on Japanese cars will in-crease net exports of cars and dein-crease net exports of planes

Ngày tải lên: 24/12/2013, 17:15

... a period of a year or two, an increase in the overall level of prices in the economy tends to raise the quantity of goods and services supplied, and a decrease in the level of prices tends to ... P) This is just another way of representing the classical analysis of growth and inflation we conducted in Chapters 24 and 28 The purpose of developing the model of aggregate demand and aggregate ... P1980 to P1990and then to P2000 Thus, the model of aggregate demand and aggregate supply offers a new way to describe the classical analysis of growth and inflation. Trang 2it is to provide

Ngày tải lên: 24/12/2013, 17:15

... com-bination of marriage taxes and marriage subsidies According to a study by the Congressional Budget Office, 42 percent of married couples pay a marriage tax, averaging 2.0 percent of their income, ... of their income, while 51 percent of married couples pay lower taxes by virtue of being wed, averaging 2.3 percent of their income Whether a couple is better off (from a tax standpoint) being ... The bur-den of the tax ultimately falls on people—the owners, customers, or workers of the corporation Many economists believe that workers and customers bear much of the burden of the corporate

Ngày tải lên: 21/01/2014, 23:20

... the time inconsistency of policy Because policymakers are so often time inconsistent, people are skeptical when central bankers announce their in-tentions to reduce the rate of inflation As a ... Regardless of the precise form of the rule, committing the Fed to some rule would yield advantages by limiting incompetence, abuse of power, and time inconsistency in the conduct of monetary ... limits of macroeconomic knowledge and the inherent un-predictability of world events Economic policymakers should refrain from inter-vening often with monetary and fiscal policy and be content

Ngày tải lên: 21/01/2014, 23:20

... de-manded of a good falls when the price of the good rises law of supply—the claim that, other things equal, the quantity supplied of a good rises when the price of the good rises law of supply ... elasticity of demand—a measure of how much the quantity demanded of one good responds to a change in the price of another good, computed as the percentage change in quantity demanded of the first ... destabilizing ◆ Advocates of rules for monetary policy argue that discretionary policy can suffer from incompetence, abuse of power, and time inconsistency Critics of rules for monetary policy

Ngày tải lên: 21/01/2014, 23:20

... and each would get a profit of $1,800. T H E E Q U I L I B R I U M F O R A N O L I G O P O LY Although oligopolists would like to form cartels and earn monopoly profits, often that is not possible ... of the world’s big shipping lines, from Sea-Land Service Inc of the U.S to A P Moller/Maersk Line of Den-mark, are members of a little-noticed cartel that for many decades has set rates on tens ... total of 60 gallons of waterwould be sold at a price of $60 a gallon My profit would be $1,800 (30 gallons ⫻ $60 a gallon) Alternatively, I could produce 40 gallons In this case, a total of 70

Ngày tải lên: 26/01/2014, 18:20

... gets $1,600 profit Jill gets $1,600 profit Jill gets $2,000 profit Jill gets $1,500 profit Jill gets $1,800 profit Jack gets $1,500 profit Jack gets $2,000 profit Jack gets $1,800 profit Sell 30 ... million profit Arco gets $4 million profit Arco gets $6 million profit Arco gets $3 million profit Arco gets $5 million profit Exxon gets $3 million profit Exxon gets $6 million profit Exxon ... billion profit Camel gets $3 billion profit Camel gets $5 billion profit Camel gets $2 billion profit Camel gets $4 billion profit Marlboro gets $2 billion profit Marlboro gets $5 billion profit Marlboro

Ngày tải lên: 26/01/2014, 18:20

... total amount of income— $100,000 in our example—were fixed But, in fact, it is not Utilitarians reject com-plete equalization of incomes because they accept one of the Ten Principles of Economics ... extent, the goal of utilitarians is to ap-ply the logic of individual decisionmaking to questions concerning morality and public policy. The starting point of utilitarianism is the notion of ... a new poverty line,” said Rebecca M. Blank, dean of the School of Social Pol-icy at the University of Michigan “What there is here are a set of judgment calls, now being made, about what is needed

Ngày tải lên: 18/10/2013, 00:15

... by cutting back on the luxury of meat and buying more of the staple food of potatoes Thus, it is argued that a higher price of potatoes actually raised the quantity of potatoes demanded. Whether ... theory of consumer choice does allow demand curves to slope upward Yet such occurrences are so unusual that the law of demand is as reliable a law as any in economics. Quantity of Meat A Quantity of ... effect on labor supply of winning such a large prize is substantial. Similar results were found in a study, published in the May 1993 issue of the Quarterly Journal of Economics, of how receiving a

Ngày tải lên: 24/10/2013, 18:15

... the health of our children, the quality of their education, or the joy of their play It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public ... economy, it does not matter much which measure of income we use. F Y I Other Measures of Income Trang 3condition of the economy, economists and policymakers often want to lookbeyond these regular seasonal ... because each dollar of expenditure included in GDP is placed into one of the four components of GDP, the total of the four components must be equal to GDP. We have just seen an example of each component

Ngày tải lên: 29/10/2013, 01:15

... overwhelming task The field of economics is based on a few basic ideas that can be applied in many dif-ferent situations Throughout this book we will refer back to the Ten Principles of Economics highlighted ... analysis is built using the ten principles introduced here Ta b l e 1 - 1 T EN P RINCIPLES OF E CONOMICS H OW P EOPLE #1: People Face Tradeoffs M AKE D ECISIONS #2: The Cost of Something Is What You ... three examples of important tradeoffs that you face in your life. 2 What is the opportunity cost of seeing a movie? 3 Water is necessary for life Is the marginal benefit of a glass of water large

Ngày tải lên: 08/11/2013, 00:15

... overall level of prices The consumer price index compares the price of a fixed basket of goods and services to the price of the basket in the base year Only occasionally does the Bureau of Labor Statistics ... the price of movie tickets, have been rising over time. When we correct box office receipts for the effects of inflation, the story is very different. Table 23-2 shows the top ten movies of all ... price of chicken or a 10 percent increase in the price of caviar? Why? 2 Describe the three problems that make the consumer price index an imperfect measure of the cost of living. 3 If the price 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 ... 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 ... expen-diture on the economy’s output of goods and services The level of real GDP is a good gauge of economic prosperity, and the growth of real GDP is a good gauge of economic progress Here we focus

Ngày tải lên: 08/11/2013, 00:15

... standard of living in a nation and how policymakers can endeavor to raise the standard of living through policies that promote economic growth Most of this chapter is summarized in one of the Ten Principles ... techniques. The final way in which a country can influence population growth is to apply one of the Ten Principles of Economics: People respond to incentives Bearing a child, like any decision, has an ... 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

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 ... easier to see in the case of babies and mini- vans. Couples often buy a minivan in anticipation of the birth of a child. The Violent Crimes (per 1,000 people) Police Officers (per 1,000 people) 0 Figure...

Ngày tải lên: 15/12/2013, 11:15

... sum of all the individual demands for a particular good or service. Catherine’s Demand Price of Ice-Cream Cone Price of Ice-Cream Cone Nicholas’s Demand 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity of Ice-Cream ... competitive? DEMAND We begin our study of markets by examining the behavior of buyers. Here we con- sider what determines the quantity demanded of any good, which is the amount of the good that buyers are ... arrange sales. More often, markets are less organized. For example, consider the market for ice cream in a particular town. Buyers of ice cream do not meet together at any one time. The sellers of ice cream...

Ngày tải lên: 15/12/2013, 11:15

... percentage change in the price of the second good price elasticity of supply a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the ... attendance at the various museums around the country to see how the admission price affects attendance. In studying either of these sets of data, the statisticians would need to take account of ... affect attendance— weather, population, size of collection, and so forth—to isolate the effect of price. In the end, such data analysis would provide an estimate of the price elas- ticity of demand,...

Ngày tải lên: 15/12/2013, 11:15

... demanded. Unemployment of this sort is sometimes called structural unem- ployment, and it is often thought to explain longer spells of unemployment. As we will see, this kind of unemployment results ... finding a job. Almost half of all spells of unemployment end when the unemployed person leaves the labor force. Because people move into and out of the labor force so often, statistics on un- employment ... politicians campaigning for office often speak about how their proposed policies will help create jobs. In the preceding two chapters we have seen some of the forces that determine the level and growth of a country’s...

Ngày tải lên: 15/12/2013, 11:15

... diagram of the labor market, show the effect of an increase in the minimum wage on the wage paid to workers, the number of workers supplied, the number of workers demanded, and the amount of unemployment. 7. ... surplus of workers, it might seem profitable to reduce the wage it is offering. But by reducing the wage, the firm induces an adverse change in the mix of workers. In this case, at a wage of $10, ... variety of interesting problems for eco- nomic theory. Some of these problems were highlighted in our description of the theory of efficiency wages. These prob- lems, however, go beyond the study of...

Ngày tải lên: 15/12/2013, 11:15