ten principles of economics explained

... 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 ... extent, the goal of utilitarians is to ap- ply the logic of individual decisionmaking to questions concerning morality and public policy. The starting point of utilitarianism is the notion of ... veil of ignorance would be to maximize the average utility of members of society, and the resulting notion of justice would be more utilitarian than Rawlsian. LIBERTARIANISM A third view of inequality...

Ngày tải lên: 18/10/2013, 00:15

... effect on labor supply of winning such a large prize is substantial. Similar results were found in a study, published in the May 1993 issue of the Quarterly Journal of Economics, of how receiving a ... cutting back on the luxury of meat and buying more of the staple food of potatoes. Thus, it is argued that a higher price of potatoes actually raised the quantity of potatoes demanded. Whether ... of consumer choice does allow demand curves to slope upward. Yet such occurrences are so unusual that the law of demand is as reliable a law as any in economics. Quantity of Meat A Quantity of Potatoes 0 E C I 2 I 1 Initial...

Ngày tải lên: 24/10/2013, 18:15

... the health of our children, the quality 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 public debate ... Americans. 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 is to ... value of final goods. The reason is that the value of intermediate goods is already included in the prices of the final goods. Adding the market value of the paper to the market value of the...

Ngày tải lên: 29/10/2013, 01:15

... Bureau of Labor Statistics did revise the basket of goods B EHIND EVERY MACROECONOMIC STATISTIC are thousands of individual pieces of data on the economy. This article fol- lows some of the people ... a higher or lower standard of liv- ing than today’s players. MEASURING THE COST OF LIVING 508 PART EIGHT THE DATA OF MACROECONOMICS maternal mortality, higher rates of child malnutrition, and ... and pro-reform director of the Institute of Economic Problems of the Transitional Period. “Seven years ago to report an increase in the amount of production was to become a Hero of Socialist Labor,”...

Ngày tải lên: 29/10/2013, 01:15

... 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 ... incremental adjustments to a plan of action CHAPTER 1 TEN PRINCIPLES OF ECONOMICS 7 thinking at the margin. Imagine that a plane is about to take off with ten empty seats, and a standby passenger ... individuals who make up the economy, we start our study of economics with four principles of in- dividual decisionmaking. PRINCIPLE #1: PEOPLE FACE TRADEOFFS The first lesson about making decisions is...

Ngày tải lên: 08/11/2013, 00:15

... 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, is a subject of continuing debate. QUICK ... task. The field of economics is based on a few basic ideas that can be applied in many dif- ferent situations. Throughout this book we will refer back to the Ten Principles of Economics highlighted ... 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

... source of the inefficiency were eliminated, the economy could 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 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 Principles of Economics ... infeasible point. Show the effects of a drought. ◆ Define microeconomics and macroeconomics. THE ECONOMIST AS POLICY ADVISER Often economists are asked to explain the causes of economic events. Why, for...

Ngày tải lên: 08/11/2013, 00:15

... well-being of others? Explain. 2. Suppose that the residents of Vegopia spend all of their income on cauliflower, broccoli, and carrots. In 2001 they buy 100 heads of cauliflower for $200, 50 bunches of ... that nominal and real interest rates often do not move together. S OURCE : U.S. Department of Labor; U.S. Department of Treasury. CHAPTER 23 MEASURING THE COST OF LIVING 519 THE GDP DEFLATOR VERSUS ... overall level of prices. The consumer price index compares the price of a fixed basket of goods and services to the price of the basket in the base year. Only occasionally does the Bureau of Labor...

Ngày tải lên: 08/11/2013, 00:15

... capital. One of the Ten Principles of Economics presented in Chapter 1 is that people face tradeoffs. This principle is especially important when considering the accumula- tion of capital. Because ... experienced more rapidly growing productivity. Indeed, one of the Ten Principles of Economics in Chapter 1 is that a country’s stan- dard of living depends on its ability to produce goods and services. Hence, ... of capital and be able to produce more of all types of goods and services. Thus, one way to raise future pro- ductivity is to invest more current resources in the production of capital. One of...

Ngày tải lên: 08/11/2013, 00:15

... 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 that start off rich ... techniques. The final way in which a country can influence population growth is to apply one of the Ten Principles of Economics: People respond to incentives. Bearing a child, like any decision, has an...

Ngày tải lên: 08/11/2013, 00:15

... the 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 ... ac- tivities of millions of people with varying tastes and abilities. As a starting point for this analysis, here we consider the reasons for economic interdependence. One of the Ten Principles of Economics ... easier 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

... opportunity cost of producing 1 pound of meat is 2 pounds of potatoes. Explain why the rancher’s opportunity cost of producing 1 pound of meat is 1/8 pound of potatoes. 2. Maria can read 20 pages of economics ... pound of potatoes costs the rancher 8 pounds of meat, 1 pound of meat costs the rancher 1/8 pound of potatoes. Similarly, because 1 pound of potatoes costs the farmer 1/2 pound of meat, 1 pound of ... The rancher buys 1 pound of potatoes for a price of 3 pounds of meat. This price of potatoes is lower than her opportunity cost of 1 pound of potatoes, which is 8 pounds of meat. Thus, the rancher...

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 ... competitive? DEMAND We begin our study of markets by examining the behavior of buyers. Here we con- sider what determines the quantity demanded of any good, which is the amount of the good that buyers are ... arrange sales. More often, markets are less organized. For example, consider the market for ice cream in a particular town. Buyers of ice cream do not meet together at any one time. The sellers of ice cream...

Ngày tải lên: 15/12/2013, 11:15

Ngày tải lên: 15/12/2013, 11:15

Ngày tải lên: 15/12/2013, 11:15

Ngày tải lên: 15/12/2013, 11:15

Ngày tải lên: 15/12/2013, 11:15

Ngày tải lên: 15/12/2013, 11:15