Pinciples of economics

Ten Principles of Economics - Part 44

Ten Principles of Economics - Part 47

... cutting back on the luxury of meatand buying more of the staple food of potatoes. Thus, it is argued that a higherprice of potatoes actually raised the quantity of potatoes demanded.Whether ... of consumer choice does allow demand curves to slopeupward. Yet such occurrences are so unusual that the law of demand is as reliablea law as any in economics. Quantity of MeatAQuantity of Potatoes0ECI2I1Initial ... of this time at her computer developing software. For every hour she spendsdeveloping software, she earns $50, which she spends on consumption goods.Thus, her wage ($50) reflects the tradeoff...

Ten Principles of Economics - Part 49

... the health of our children, thequality 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 publicdebate ... producer.506 PART EIGHT THE DATA OF MACROECONOMICSCASE STUDYINTERNATIONAL DIFFERENCES IN GDP AND THEQUALITY OF LIFEOne way to gauge the usefulness of GDP as a measure of economic well-beingis to ... ENVIRONMENT.498 PART EIGHT THE DATA OF MACROECONOMICS“. . . IN A GIVEN PERIOD OF TIME.”GDP measures the value of production that takes place within a specific interval of time. Usually that interval...

Ten Principles of Economics - Part 50

... honey.PRICEQUANTITYPRICEOFQUANTITYYEAR OF MILK OF MILKHONEY OF HONEY2001 $1 100 qts. $2 50 qts.2002 $1 200 $2 1002003 $2 200 $4 100510 PART EIGHT THE DATA OF MACROECONOMICSa. Compute ... Bureau of Labor Statistics did revise the basket of goodsBEHIND EVERY MACROECONOMIC STATISTICare thousands of individual pieces of data on the economy. This article fol-lows some of the people ... andpro-reform director of the Institute of Economic Problems of the TransitionalPeriod.“Seven years ago to report anincrease in the amount of productionwas to become a Hero of SocialistLabor,”...

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Ten Principles of Economics - Part 1

... affectpeople’s behaviorLearn the meaning of opportunity costLearn that economics is aboutthe allocation of scarce resourcesExamine some of thetradeoffs that peoplefaceSee how to usemarginal ... 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 youan overview of what economics is all ... spending money.scarcitythe limited nature of society’sresources economics the study of how society manages itsscarce resourcesCHAPTER 1 TEN PRINCIPLES OF ECONOMICS 5Or consider parents deciding...

Ten Principles of Economics - Part 2

... three examples of important tradeoffs that you facein your life.2. What is the opportunity cost of seeing a movie?3. Water is necessary for life. Is the marginal benefit of aglass of water large ... methods of scienceConsider howassumptions andmodels can shedlight on the worldDistinguish betweenmicroeconomics andmacroeconomicsEvery field of study has its own language and its own way of ... economic history of the United States points to a similar conclusion: Thehigh inflation of the 1970s was associated with rapid growth in the quantity of money, and the low inflation of the 1990s...

Ten Principles of Economics - Part 3

... judgments.As you study economics, keep in mind the distinction between positive andnormative statements. Much of economics just tries to explain how the economyworks. Yet often the goal of economics is ... source of the inefficiency were eliminated, the economycould 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 frompoint A to point C, for instance, society produces more computers but at the ex-pense of producing fewer cars.Another of the Ten Principles of Economics...

Ten Principles of Economics - Part 51

... overall level of prices. The consumer price index compares theprice of a fixed basket of goods and services to the price of the basket in the baseyear. Only occasionally does the Bureau of Labor ... correction of a dollaramount for the effects of inflationby law or contract“FRANKLY, MY DEAR, I DON’T CARE MUCHFOR THE EFFECTS OF INFLATION.”522 PART EIGHT THE DATA OF MACROECONOMICSFor ... that nominal andreal interest rates often do notmove together.SOURCE: U.S. Department of Labor;U.S. Department of Treasury.524 PART EIGHT THE DATA OF MACROECONOMICSchanges in interest rates,...

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