Principle of economics session XIII unemployment
Pinciples of economics
... with the study of economics.
a. Generalizing from individual experiences often leads to wrong
conclusions (this is called the fallacy of composition). For example, an
8
PRINCIPLES OF ECONOMICS
b. ... potential
output of a given quantity of resources; (2) the quantity of economic re-
sources increases; or (3) the cost of resources declines.
Changes in Aggregate Output
The eff...
THE PRINCIPLE OF LEVERACE
... during the third year, the last year of rapid
growth. Then they improved during the downturn that followed; but
then they grew worse again.
Over the entire ten-year history of the firm, there ...
most of the actors in those systems. They don't see the "structures"
underlying their actions. The purpose of the systems archetypes,
such as limits to...
Ten Principles of Economics - Part 44
... 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 ... the
form of goods and services rather than cash are called in-kind transfers. Standard
measurements of the degree of inequality do not take account of these in-kind
transfers....
Ten Principles of Economics - Part 47
... less. The labor supply curve, there-
fore, could be either upward or backward sloping.
“N
O MORE
9-
TO
-5
FOR ME
.”
CHAPTER 21 THE THEORY OF CONSUMER CHOICE 477
of Pepsi falls, the consumer moves ... 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 Econom...
Ten Principles of Economics - Part 49
... expenditure, GDP per per-
son seems a natural measure of the economic well-being of the average individual.
Yet some people dispute the validity of GDP as a measure of well-being. When
Senator Robert ... Americans.
506 PART EIGHT THE DATA OF MACROECONOMICS
CASE STUDY
INTERNATIONAL DIFFERENCES IN GDP AND THE
QUALITY OF LIFE
One way to gauge the usefulness of GDP as a measure...
Ten Principles of Economics - Part 50
... a higher or lower standard of liv-
ing than today’s players.
MEASURING THE
COST OF LIVING
508 PART EIGHT THE DATA OF MACROECONOMICS
maternal mortality, higher rates of child malnutrition, and ... change in this measure of well-
being compare to the change in GDP?
c. Can you think of other aspects of well-being that
are associated with the rise in women’s labor force
particip...
Ten Principles of Economics - Part 1
... and
Causes of the Wealth of Na-
tions, was published in 17 76,
the exact year American revolu-
tionaries signed the Declara-
tion of Independence. But the
two documents do share a
point of view that ... ideas. In the rest of this chapter, we look at Ten Principles of Economics.
These principles recur throughout this book and are introduced here to give you
an overview of...
Ten Principles of Economics - Part 2
... analysis is built using the ten principles introduced
here.
Table 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 ... situations.
Throughout this book we will refer back to the Ten Principles of Economics
highlighted in this chapter and summarized in Table 1-1 . Whenever we do so,
a building...
Ten Principles of Economics - Part 3
... the
effects of a drought. ◆ Define microeconomics and macroeconomics.
THE ECONOMIST AS POLICY ADVISER
Often economists are asked to explain the causes of economic events. Why, for ex-
ample, is ... computers (to 2,000).
One of the Ten Principles of Economics discussed in Chapter 1 is that people face
tradeoffs. The production possibilities frontier shows one tradeoff that socie...
Ten Principles of Economics - Part 51
... nominal and
real interest rates often do not
move together.
S
OURCE
: U.S. Department of Labor;
U.S. Department of Treasury.
CHAPTER 23 MEASURING THE COST OF LIVING 519
THE GDP DEFLATOR VERSUS THE ... con-
sumer price index show high rates of inflation. In the late 1980s and 1990s, both
measures show low rates of inflation.
522 PART EIGHT THE DATA OF MACROECONOMICS
For examp...
Ten Principles of Economics - Part 52
... production of capital.
One of the Ten Principles of Economics presented in Chapter 1 is that people face
tradeoffs. This principle is especially important when considering the accumula-
tion of capital. ... 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...
Principle of economics session XIV the monetary system
... Session XIV
The Monetary System
Principles of Economics
Overview
What are the functions of money? The types of money?
What is the central bank (Federal Reserve, ... money has in the
economy.
–what the Federal Reserve System is.
–how the banking system helps determine the supply
of money.
–what tools the Federal Reserve uses to alter the
s...
Principle of economics session XV money growth and inflation
... Session XV
Money Growth and
Inflation
Principles of Economics
Overview
How does the money supply affect inflation and
nominal interest rates?
Does the money supply affect ...
neutrality of money describe the economy in the long run.
Part II
Quantity Theory of Money
Money Growth and Inflation
21
The Velocity of Money
Velocity of...
Principle of economics session XIII unemployment
... Session XIII
Unemployment
Principles of Economics
Overview
How is unemployment measured?
What are the “three types of unemployment ?
What is the “natural rate of unemployment ? ...
Part II
Types of Unemployment
Unemployment
19
Natural Rate of Unemployment
There’s always some unemployment, though the u-
rate fluctuates from year to year.
Natural rat...