Ten Principles of economics ppt

... 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 ... source of the inefficiency were eliminated, the economy could move from point B to point A, increasing production of both cars (to 700) and computers (to 2,000). One...

Ngày tải lên: 10/07/2014, 10:20

... 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 o...

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 am...

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...

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, statis...

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 th...

Ngày tải lên: 15/12/2013, 11:15

... shows the quantity of money in the economy and an index of the price level. The slope of the money line represents the rate at which the quantity of money was growing, and the slope of the price line ... stabilizes, the price level stabilizes as well. These episodes illustrate well one of the Ten Principles of Economics: Prices rise when the government prints too much money...

Ngày tải lên: 15/12/2013, 11:15

... outcomes: efficiency the property of a resource allocation of maximizing the total surplus received by all members of society equity the fairness of the distribution of well-being among the members of society CHAPTER ... the producer surplus of all sellers. Quantity of Houses Painted Quantity of Houses Painted Price of House Painting 500 800 $900 0 Supply 600 1234 (b) Pric...

Ngày tải lên: 24/12/2013, 17:15

... tax revenue. This chapter has shed some light on how high the price of civilized society can be. One of the Ten Principles of Economics discussed in Chapter 1 is that markets are usually a good ... raw land. Yet the value of land often comes from improvements, such as clearing trees, providing sewers, and building roads. Unlike the supply of raw land, the supply of improveme...

Ngày tải lên: 24/12/2013, 17:15