Ten Principles of Economics - Part 53

... 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 ... extra unit of an input declines as the quantity of the input increases catch-up effect the property whereby countries that start off poor tend to grow more rapidly than countries...

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

... effect tends to make the consumer buy more pizza and more Pepsi. Yet, at the same time, consumption of Pepsi has become less expensive rela- tive to consumption of pizza. This substitution effect tends ... 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 potatoe...

Ngày tải lên: 24/10/2013, 18:15

... Lightens Up 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 of economic well-being ... produced domestically, regardless of the nationality of the producer. 498 PART EIGHT THE DATA OF MACROECONOMICS “. . . IN A GIVEN PERIOD OF TIME.” GDP measures the value of...

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 2001 $1 100 qts. $2 50 qts. 2002 $1 200 $2 100 2003 $2 200 $4 100 510 PART EIGHT THE DATA OF MACROECONOMICS a. Compute ... index (CPI) is a measure of the overall cost of the goods and services bought by a typical consumer. Each month the Bureau of Labor Statistics, which is part of the Department...

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

... studying the short-run and long-run ef- fects of a change in the quantity of money. ECONOMIC MODELS High school biology teachers teach basic anatomy with plastic replicas of the hu- man body. These ... CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 15 monetary and fiscal policy are potentially so powerful, how policymakers should use these instruments to control the economy, if at all, i...

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

... nominal and real interest rates often do not move together. S OURCE : U.S. Department of Labor; U.S. Department of Treasury. 524 PART EIGHT THE DATA OF MACROECONOMICS changes in interest rates, ... 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 b...

Ngày tải lên: 08/11/2013, 00:15