Tài liệu Ten Principles of Economics - Part 67 ppt

... countries. The model of the exchange rate developed here is re- lated to the theory of purchasing-power parity. According to the theory of purchasing-power parity, international trade re- sponds quickly ... country 684 PART ELEVEN THE MACROECONOMICS OF OPEN ECONOMIES rate were above the equilibrium level, the quantity of dollars supplied would ex- ceed the quantity demanded. The s...

Ngày tải lên: 24/12/2013, 17:15

... 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 produc- ing meat ... case of babies and mini- vans. Couples often buy a minivan in anticipation of the birth of a child. The Violent Crimes (per 1,000 people) Police Officers (per 1,000 peopl...

Ngày tải lên: 15/12/2013, 11:15

... sum of all the individual demands for a particular good or service. Catherine’s Demand Price of Ice-Cream Cone Price of Ice-Cream Cone Nicholas’s Demand 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity of Ice-Cream ... relationship between the price of a good and the quantity demanded Price of Ice-Cream Cone 0 2.50 2.00 1.50 1.00 0.50 1 2 3 4 5 6 7 8 9 10 11 Quantity of Ice-Cream Cones $3....

Ngày tải lên: 15/12/2013, 11:15

... considered a 40 per- cent fall. Because the midpoint method gives the same answer regardless of the direc- tion of change, it is often used when calculating the price elasticity of demand be- tween two ... together, such as comput- ers and software. In this case, the cross-price elasticity is negative, indicating that an increase in the price of computers reduces the quantity of sof...

Ngày tải lên: 15/12/2013, 11:15

... on labor-force participation. The labor-force participation rate measures the percentage of the total adult pop- ulation of the United States that is in the labor force: Labor-force participation ... million, the labor-force participation rate was Labor-force participation rate ϭ (137.7/205.2) ϫ 100 ϭ 67. 1 percent. Hence, in 1998, two-thirds of the U.S. adult population were participa...

Ngày tải lên: 15/12/2013, 11:15

... has a fifty-fifty chance of hiring the compe- tent one. By contrast, if the firm offers any lower wage, it is sure to hire the incom- petent worker. In many situations in life, in- formation ... variety of interesting problems for eco- nomic theory. Some of these problems were highlighted in our description of the theory of efficiency wages. These prob- lems, however, go beyond the...

Ngày tải lên: 15/12/2013, 11:15

... rate. S OURCE : U.S. Department of Treasury; U.S. Department of Labor. 632 PART TEN MONEY AND PRICES IN THE LONG RUN THE EFFECTS OF A MONETARY INJECTION Let’s now consider the effects of a change in ... quantity of money, the velocity of money, and the dollar value of the economy’s output of goods and services 636 PART TEN MONEY AND PRICES IN THE LONG RUN The price lev...

Ngày tải lên: 15/12/2013, 11:15

... property of a resource allocation of maximizing the total surplus received by all members of society equity the fairness of the distribution of well-being among the members of society 154 PART THREE ... planner. The benevolent social planner is an all-knowing, all-powerful, well-intentioned dictator. The planner wants to maxi- mize the economic well-being of everyone in societ...

Ngày tải lên: 24/12/2013, 17:15

... THE COSTS OF TAXATION 167 Let’s consider first how the elasticity of supply affects the size of the dead- weight loss. In the top two panels of Figure 8-5 , the demand curve and the size of the tax ... that part of the disagree- ment may rest on different views about the elasticity of labor supply and the deadweight loss of taxation. “L ET ME TELL YOU WHAT I THINK ABOUT...

Ngày tải lên: 24/12/2013, 17:15