Principles of economics pptx

... 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

... economy’s production of goods and services. Although some degree of unemployment is inevitable in a complex economy with thousands of firms and millions of workers, the amount of unemployment varies substantially ... the typical spell of unemployment lasts. HOW IS UNEMPLOYMENT MEASURED? Measuring unemployment is the job of the Bureau of Labor Statistics (BLS), which is part o...

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

... or her income level. For example, a taxpayer with income of $50,000 pays 15 percent of the first $25,750 of income, and then 28 percent of the rest. O N T AXABLE I NCOME . . . T HE T AX R ATE I S . ... WILL . . . Consider the tradeoff between efficiency and equity in the design of a tax system Learn alternative ways to judge the equity of a tax system Get an overview of how the...

Ngày tải lên: 24/12/2013, 17:15

... could buy coffee in Seattle for, say, $4 a pound and then sell it in Boston for $5 a pound, mak- ing a profit of $1 per pound from the difference in price. The process of taking ad- vantage of differences ... Euro 672 PART ELEVEN THE MACROECONOMICS OF OPEN ECONOMIES would drive up the U.S. price of coffee and drive down the Japanese price. Con- versely, if a dollar could buy more co...

Ngày tải lên: 24/12/2013, 17:15

... also influence the quantity of goods and ser- vices supplied. For instance, consider the effects of tax changes on aggregate supply. One of the Ten Principles of Economics in Chapter 1 is that ... multiplier. OTHER APPLICATIONS OF THE MULTIPLIER EFFECT Because of the multiplier effect, a dollar of government purchases can generate more than a dollar of aggregate demand. Th...

Ngày tải lên: 24/12/2013, 17:15

... the social value of advertising is difficult and often generates heated argument among economists. Let’s consider both sides of the debate. The Critique of Advertising Critics of advertising argue ... cans of the soft drink. The goal of the commercial is to convey a subconscious (if not subtle) message: “You too can have many friends and be happy, if only you drink our product.” C...

Ngày tải lên: 26/01/2014, 18:20

... 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 of the Ten Principles of Economics ... less of the other. When the economy moves from point A to point C, for instance, society produces more computers but at the ex- pense of producing fewer cars. Another of th...

Ngày tải lên: 05/03/2014, 20:20