chapter 1 ten principles of economics ppt

... inequalities Chapter 1/ Ten Principles of Economics  ANS: A NAT: Analytic TOP: Scarcity DIF: REF: 1- 0 LOC: Scarcity, tradeoffs, and opportunity cost MSC: Interpretive 11 Which of the following ... 1- 1 TOP: Efficiency 14 Which of the following words and phrases best captures the notion of equality? a b c d minimum waste maximum benefit sameness efficiency 10  Chapter 1/ Ten Principles of ... rates of productivity growth low rates of growth of the quantity of money ANS: D NAT: Analytic MSC: Interpretive DIF: REF: 1- 3 LOC: Unemployment and inflation Chapter 1/ Ten Principles of Economics

Ngày tải lên: 28/11/2020, 20:39

... 10 0,000 10 ,000 1, 000 10 0 19 2 519 2 419 2 319 2 219 21 Money supply Money supply Price level 10 0,000 10 ,000 1, 000 10 0 19 2 519 2 419 2 319 2 219 21 192 519 2 419 2 319 2 219 21 Price level Money supply Index (Jan. 19 21 = 10 0) ... (Jan. 19 21 = 10 0) Index (July 19 21 = 10 0) (c) Germany Price level 1 Index (Jan. 19 21 = 10 0) (d) Poland 10 0,000,000,000,000 1, 000,000 10 ,000,000,000 1, 000,000,000,000 10 0,000,000 10 ,000 10 0 10 0,000 ... essence of the quantity theory of money. Indexes (19 60 = 10 0) 1, 500 1, 000 500 0 19 60 19 65 19 70 19 75 19 80 19 85 19 90 19 95 2000 Velocity M2 Nominal GDP Figure 28-3 N OMINAL GDP, THE Q UANTITY OF M

Ngày tải lên: 15/12/2013, 11:15

... demand will drive up 10 ,000,000,000 1, 000,000,000,000,000 10 0,000 1 .000 01 .00000000 01 19 21 1922 19 23 19 24 Exchange rate Money supply Price level 19 25 Indexes (Jan. 19 21 ϭ 10 0) Figure 29-3 M ONEY ... 294 yen 12 1 yen/$ 12 0 yen/$ Russia 33.5 rubles 13 .8 rubles/$ 24.7 rubles/$ Germany 4.95 marks 2.04 marks/$ 1. 82 marks/$ Brazil 2.95 reals 1. 21 reals/$ 1. 73 reals/$ Britain 1. 90 pounds 0.78 pound/$ ... price of a Big Mac was $2.43 in the United States: P RICE OF P REDICTED A CTUAL C OUNTRY A B IG M AC E XCHANGE R AT E E XCHANGE R AT E Italy 4,500 lira 1, 852 lira/$ 1, 799 lira/$ Japan 294 yen 12 1

Ngày tải lên: 24/12/2013, 17:15

... Quantity of Dollars Quantity of Loanable Funds Net Foreign Investment Real Exchange Rate r 1 r 1 E 1 E 2 Demand Demand r 2 r 2 NFI S 1 S 2 S 2 S 1 B A 1. A budget deficit reduces the supply of loanable ... D 1 to D 2 in panel (c). This increase in the demand for dollars causes the value of the dollar to appreciate from E 1 to E 2 . This appreciation of the dollar tends to reduce net exports, offsetting ... for Foreign-Currency Exchange Quantity of Dollars Quantity of Loanable Funds Net Foreign Investment Real Exchange Rate r 1 r 1 Supply Supply Demand NFI D 2 D 1 3. Net exports, however, remain the

Ngày tải lên: 24/12/2013, 17:15

... indicates. THIS WORKER PAYS PART OF THE CORPORATE INCOME TAX . CHAPTER 12 THE DESIGN OF THE TAX SYSTEM 2 61 called the flat tax. The flat tax was proposed in the early 19 80s by economist Robert Hall ... rate of 19 percent. Most of the plans allow a certain amount of income to be excluded from the tax. If the income exclusion were $10 ,000, for instance, then a person’s tax bill would be Tax ϭ 0 .19 ... terms of eco- nomic efficiency. Tax reform was, therefore, a high priority of his administration. Reagan signed into law large cuts in tax rates in 19 81 and then again in 19 86. When Reagan left office

Ngày tải lên: 21/01/2014, 23:20

... the time inconsistency of policy. Because policymakers are so often time inconsistent, people are skeptical when central bankers announce their in- tentions to reduce the rate of inflation. As ... Regardless of the precise form of the rule, committing the Fed to some rule would yield advantages by limiting incompetence, abuse of power, and time inconsistency in the conduct of monetary ... CHAPTER 33 THE SHORT-RUN TRADEOFF BETWEEN INFLATION AND UNEMPLOYMENT 785 rate of inflation. The widespread belief that there is a permanent tradeoff is a sophisticated version of the confusion

Ngày tải lên: 21/01/2014, 23:20

... Explain. 10 . Give an example, other than tax policy, of how our society discourages saving. 11 . What adverse effect might be caused by tax incentives to raise saving? Questions for Review 1. The chapter ... practice? 11 . The chapter says that budget deficits reduce the income of future generations, but can boost output and income during a recession. Explain how both of these statements can be true. 12 . ... ϭ 2% ϩ π ϩ 1/ 2 (y Ϫ y*)/y* ϩ 1/ 2 (π Ϫ π*), where π is the average of the inflation rate over the past year, y is real GDP as recently measured, y* is an estimate of the natural rate of output,

Ngày tải lên: 21/01/2014, 23:20

... (AND TOTAL PROFIT) 0 $12 0 $ 0 10 11 0 1, 100 20 10 0 2,000 30 90 2,700 40 80 3,200 50 70 3,500 60 60 3,600 70 50 3,500 80 40 3,200 90 30 2,700 10 0 20 2,000 11 0 10 1, 100 12 0 0 0 CHAPTER 16 OLIGOPOLY ... high prices in the period from 19 73 to 19 85. The price of crude oil rose from $2.64 a barrel in 19 72 to $11 .17 in 19 74 and then to $35 .10 in 19 81. But in the early 19 80s member countries began ... Wheat • Milk Monopolistic Competition (Chapter 17 ) • Tennis balls • Crude oil Oligopoly (Chapter 16 ) Number of Firms? Perfect Competition (Chapter 14 ) Type of Products? Identical products Differentiated products One firm Few firms Many firms Figure

Ngày tải lên: 26/01/2014, 18:20

... Gallons Jack gets $1, 600 profit Jill gets $1, 600 profit Jill gets $2,000 profit Jill gets $1, 500 profit Jill gets $1, 800 profit Jack gets $1, 500 profit Jack gets $2,000 profit Jack gets $1, 800 profit Sell ... oligopolies? PUBLIC POLICY TOWARD OLIGOPOLIES One of the Ten Principles of Economics in Chapter 1 is that governments can some- times improve market outcomes. The application of this principle to oligopolistic markets ... by the other country. CHAPTER 16 OLIGOPOLY 363 Common Resources In Chapter 11 we saw that people tend to overuse common resources. One can view this problem as an example of the prisoners’ dilemma. Imagine

Ngày tải lên: 26/01/2014, 18:20

... amount of income— $10 0,000 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 ... persons 12 .7% White, not Hispanic 8.2 Black 26 .1 Hispanic 25.6 Asian, Pacific Islander 12 .5 Children (under age 18 ) 18 .9 Elderly (over age 64) 10 .5 Female household, no husband present 33 .1 Source: ... English philosophers Jeremy Bentham (17 48? ?18 32) and John Stuart Mill (18 06? ?18 73). To a large extent, the goal of utilitarians is to ap- ply the logic of individual decisionmaking to questions

Ngày tải lên: 18/10/2013, 00:15

... $8, 511 $ 31, 522 10 0% Consumption, C 5,808 21, 511 68 Investment, I 1, 367 5,063 16 Government purchases, G 1, 487 5,507 18 Net exports, NX ? ?15 1 Ϫ559 Ϫ2 S OURCE : U.S. Department of Commerce. CHAPTER 22 ... OGS P RICEOF H AMBURGERS Q UANTITY OF H AMBURGERS 20 01 $1 100 $2 50 2002 2 15 0 3 10 0 2003 3 200 4 15 0 Y EAR C ALCULATING N OMINAL GDP 20 01 ( $1 per hot dog ϫ 10 0 hot dogs) ϩ ($2 per hamburger ϫ ... dogs) ϩ ($2 per hamburger ϫ 15 0 hamburgers) ϭ $500 Y EAR C ALCULATING THE GDP D EFLATOR 20 01 ($200/$200) ϫ 10 0 ϭ 10 0 2002 ($600/$350) ϫ 10 0 ϭ 17 1 2003 ( $1, 200/$500) ϫ 10 0 ϭ 240 R EAL AND N OMINAL

Ngày tải lên: 29/10/2013, 01:15

... market failure, p. 11 externality, p. 11 market power, p. 11 productivity, p. 12 inflation, p. 13 Phillips curve, p. 14 Key Concepts 1. Give three examples of important tradeoffs that you face ... CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 13 In the 19 80s and 19 90s, for example, much debate in the United States centered on the government’s budget deficit—the excess of government ... introduction of competing products has reduced the expected sales of your new product to $3 million. If it would cost $1 million to finish Problems and Applications CHAPTER 1 TEN PRINCIPLES OF ECONOMICS

Ngày tải lên: 08/11/2013, 00:15

... 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 policy ... 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 society faces. Once ... As you study economics, keep in mind the distinction between positive and normative statements. Much of economics just tries to explain how the economy works. Yet often the goal of economics is

Ngày tải lên: 08/11/2013, 00:15

... to turn 19 31 dollars into today’s dollars. A price index determines the size of this inflation correction. 19 65 Percent per Year 15 CPI GDP deflator 10 5 0 19 70 19 75 19 80 19 85 19 90 19 9 819 95 Figure ... effects of inflation. Government statistics show a consumer price index of 15 .2 for 19 31 and 16 6 for 19 99. Thus, the overall level of prices has risen by a factor of 10 .9 (which equals 16 6 /15 .2). ... 19 39 $920 2. Star Wars 19 77 798 3. The Sound of Music 19 65 638 4. Titanic 19 97 6 01 5. E.T. The Extra-Terrestrial 19 82 6 01 6. The Ten Commandments 19 56 587 7. Jaws 19 75 574 8. Doctor Zhivago 19 65

Ngày tải lên: 08/11/2013, 00:15

... 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 what economics is all ... raise its profits by opportunity cost whatever must be given up to obtain some item marginal changes small incremental adjustments to a plan of action CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 7 thinking ... overall economy CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 9 side wins and the other side loses. In fact, the opposite is true: Trade between two countries can make each country better off. To see why,...

Ngày tải lên: 08/11/2013, 00:15

... discussed in Chapter 2, a production possibilities frontier shows the various mixes of output that an economy can produce. It illustrates one of the Ten Principles of Economics in Chapter 1: People ... I’ll produce 24 pounds of meat and 2 pounds of potatoes. After I give you 3 pounds of meat in exchange for 1 pound of potatoes, I’ll have 21 pounds of meat and 3 pounds of potatoes. In the end, ... to see in the 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 people) 0 Figure...

Ngày tải lên: 15/12/2013, 11:15

... ϩ 3) Price of Ice-Cream Cone 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Quantity of Ice-Cream Cones $3.00 1. 50 2.00 2.50 1. 00 0.50 ؍ Figure 4-2 M ARKET D EMAND AS THE S UM OF I NDIVIDUAL D EMANDS . ... sum of the quantities demanded by all the buyers. P RICEOF I CE -C REAM C ONE C ATHERINE N ICHOLAS M ARKET $0.00 12 ϩ 7 ϭ 19 0.50 10 6 16 1. 00 8 5 13 1. 50 6 4 10 2.00 4 3 7 2.50 2 2 4 3.00 0 1 1 ... of Ice-Cream Cones $3.00 1. 50 2.00 2.50 1. 00 0.50 0 12 345678 910 111 2 Quantity of Ice-Cream Cones $3.00 1. 50 2.00 2.50 1. 00 0.50 ؉ demand curve a graph of the relationship between the price of a good and...

Ngày tải lên: 15/12/2013, 11:15

... Elastic 54 20 22 40 1. 8 Elastic 46 24 29 29 1. 0 Unit elastic 38 24 40 22 0.6 Inelastic 210 20 67 18 0.3 Inelastic 11 2 12 200 15 0 .1 Inelastic 014 0 C OMPUTING THE E LASTICITY OF A L INEAR D EMAND C URVE N OTE : ... elasticity of demand ϭ . (Q 2 Ϫ Q 1 )/[(Q 2 ϩ Q 1 )/2] (P 2 Ϫ P 1 )/[(P 2 ϩ P 1 )/2] CHAPTER 5 ELASTICITY AND ITS APPLICATION 10 3 Income elasticity of demand ϭ . As we discussed in Chapter 4, ... quantity demanded. 5 6 $7 4 1 2 3 Quantity 12 246 810 14 0 Price Elasticity is larger than 1. Elasticity is smaller than 1. Figure 5-5 AL INEAR D EMAND C URVE . The slope of a linear demand curve is...

Ngày tải lên: 15/12/2013, 11:15

... labor-force participation rate of various groups in the U.S. population for 19 98. 10 8 6 4 2 0 19 70 19 7 519 60 19 65 19 80 19 85 19 90 2000 Percent of Labor Force 19 95 Natural rate of unemployment Unemployment ... government 10 0 80 60 40 20 0 19 50 19 55 19 60 19 65 19 70 19 75 19 80 19 85 19 90 19 95 '98 Labor-Force Participation Rate (in percent) Women Men Figure 26-3 L ABOR -F ORCE P ARTICIPATION R ATES FOR M EN AND W OMEN SINCE 19 50. ... 64.8 T EENAGERS ( AGES 16 19 ) White, male 14 .1 56.6 White, female 10 .9 55.4 Black, male 30 .1 40.7 Black, female 25.3 42.5 S OURCE : Bureau of Labor Statistics. Table 26 -1 T HE L ABOR -M ARKET E XPERIENCES OF V ARIOUS D EMOGRAPHIC G ROUPS . This...

Ngày tải lên: 15/12/2013, 11:15