Ten principles of economics

... the form of goods and services rather than cash are called in-kind transfers Standard measurements of the degree of inequality not take account of these in-kind transfers Because in-kind transfers ... total amount of income— $100,000 in our example—were fixed But, in fact, it is not Utilitarians reject complete equalization of incomes because they accept one of the Ten Princi...

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 ... a weekly consumption of $5,000 but has no time for leisure If she works a normal 40-hour week, she enjoys 60 hours of leisure and has weekly consumption of $2,000 Figure 2 1-1 3 u...

Ngày tải lên: 24/10/2013, 18:15

... citizen works temporarily in the United States, his production is part of U.S GDP, but it is not part of U.S GNP (It is part of Canada’s GNP.) For most countries, including the United States, ... intended to measure income from (and expenditure on) the production of goods and services, transfer payments are not counted as part of government purchases Table 2 2-1 shows the...

Ngày tải lên: 29/10/2013, 01:15

... N ’ S I N C O M E 509 perfect measure of well-being For example, GDP excludes the value of leisure and the value of a clean environment GDP is a good measure of economic well-being because people ... perfect cost -of- living index would reflect the introduction of the VCR with a decrease in the cost of living The consumer price index, however, did not decrease in response to the...

Ngày tải lên: 29/10/2013, 01:15

... chapter, we look at Ten Principles of Economics These principles recur throughout this book and are introduced here to give you an overview of what economics is all about You can think of this chapter ... fact, however, the airline can raise its profits by CHAPTER TEN PRINCIPLES OF ECONOMICS thinking at the margin Imagine that a plane is about to take off with ten em...

Ngày tải lên: 08/11/2013, 00:15

... the combination of inflation and unemployment that the economy experiences Because these instruments of CHAPTER TEN PRINCIPLES OF ECONOMICS 15 monetary and fiscal policy are potentially so powerful, ... overwhelming task The field of economics is based on a few basic ideas that can be applied in many different situations Throughout this book we will refer back to the Ten Pr...

Ngày tải lên: 08/11/2013, 00:15

... not always straightforward This tendency is rooted in one of the Ten Principles of Economics in Chapter 1: People face tradeoffs Economists are aware that tradeoffs are involved in most policy ... As you study economics, keep in mind the distinction between positive and normative statements Much of economics just tries to explain how the economy works Yet often the goal of e...

Ngày tải lên: 08/11/2013, 00:15

... raises the price of its cars Because Volvos are made in Sweden, the car is not part of U.S GDP But U.S consumers buy Volvos, and so the car is part of the typical consumer’s basket of goods Hence, ... 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 2 3-2 shows the top...

Ngày tải lên: 08/11/2013, 00:15

... produce more of all types of goods and services Thus, one way to raise future productivity 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 is that a country’s standard of living depends on its ability to...

Ngày tải lên: 08/11/2013, 00:15

... through policies that promote economic growth Most of this chapter is summarized in one of the Ten Principles of Economics: A country’s standard of living depends on its ability to produce goods ... takes some of this additional income back to the United States in the form of profit Similarly, when an American investor buys Mexican stock, the investor has a right to a portion...

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 producing ... activities 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...

Ngày tải lên: 15/12/2013, 11:15

... opportunity cost of producing pound of meat is pounds of potatoes Explain why the rancher’s opportunity cost of producing pound of meat is 1/8 pound of potatoes Maria can read 20 pages of economics ... viewpoint The rancher buys pound of potatoes for a price of pounds of meat This price of potatoes is lower than her opportunity cost of pound of potatoes, which is p...

Ngày tải lên: 15/12/2013, 11:15

... Quantity of Ice-Cream Cones 10 11 12 Quantity of Ice-Cream Cones CHAPTER T H E M A R K E T F O R C E S O F S U P P LY A N D D E M A N D 71 Table 4-2 shows the demand schedules for ice cream of two ... market demand, which is the sum of all the individual demands for a particular good or service Catherine’s Demand Price of Ice-Cream Cone ؉ Nicholas’s Demand Price of Ice-Cream Co...

Ngày tải lên: 15/12/2013, 11:15