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 ... they 22 PART ONE INTRODUCTION give us insight into the economy of the past and, more important, because they al- low us to illustrate and evaluate economic theories of the present...

Ngày tải lên: 08/11/2013, 00:15

... 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....

Ngày tải lên: 18/10/2013, 00:15

... rate of substitution. Figure 2 1-1 0 shows graphically how to decompose the change in the con- sumer’s decision into the income effect and the substitution effect. When the price Table 2 1 -2 G OOD ... the law of demand and buy more of a good when the price rises. To see how this can happen, consider Fig- ure 2 1-1 2. In this example, the consumer buys two goods—meat and pot...

Ngày tải lên: 24/10/2013, 18:15

... UANTITY OF H AMBURGERS 20 01 $1 100 $2 50 20 02 2 150 3 100 20 03 3 20 0 4 150 Y EAR C ALCULATING N OMINAL GDP 20 01 ($1 per hot dog ϫ 100 hot dogs) ϩ ( $2 per hamburger ϫ 50 hamburgers) ϭ $20 0 20 02 ( $2 ... quantities of the two goods produced and their prices in the years 20 01, 20 02, and 20 03. Table 2 2- 2 P RICES AND Q UANTITIES Y EAR P RICEOF H OT D OGS Q UANTITY...

Ngày tải lên: 29/10/2013, 01:15

... RICE Q UANTITY P RICEOF Q UANTITY Y EAR OF M ILK OF M ILK H ONEY OF H ONEY 20 01 $1 100 qts. $2 50 qts. 20 02 $1 20 0 $2 100 20 03 $2 200 $4 100 510 PART EIGHT THE DATA OF MACROECONOMICS a. Compute ... F IXED B ASKET OF G OODS 4 hot dogs, 2 hamburgers S TEP 2: F IND THE P RICE OF E ACH G OOD IN E ACH Y EAR Y EAR P RICE OF H OT D OGS P RICE OF H AMBURGERS 20 01 $1...

Ngày tải lên: 29/10/2013, 01:15

... her part- time job for some extra spending money. scarcity the limited nature of society’s resources economics the study of how society manages its scarce resources CHAPTER 1 TEN PRINCIPLES OF ECONOMICS ... 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 ove...

Ngày tải lên: 08/11/2013, 00:15

... is not always straight- forward. This tendency is rooted in one of the Ten Principles of Economics in Chap- ter 1: People face tradeoffs. Economists are aware that tradeoffs are involved in most ... 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 the Ten...

Ngày tải lên: 08/11/2013, 00:15

... ALLS R ACQUETS G ATORADE 20 01 price $2 $40 $1 20 01 quantity 100 10 20 0 20 02 price $2 $60 $2 20 02 quantity 100 10 20 0 a. What is the percentage change in the price of each of the three goods? What ... RICE University of Iowa tuition $130 $2, 470 Gallon of gasoline $0 .23 $1 .22 Three-minute phone call from New York to L.A. $2. 50 $0.45 One-day hospital stay in intensive...

Ngày tải lên: 08/11/2013, 00:15

... B EGINNING OF P ERIOD a AT E ND OF P ERIOD a PER YEAR Japan 1890–1997 $1,196 $23 ,400 2. 82% Brazil 1900–1997 619 6 ,24 0 2. 41 Mexico 1900–1997 922 8, 120 2. 27 Germany 1870–1997 1,738 21 ,300 1.99 ... 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...

Ngày tải lên: 08/11/2013, 00:15