ten principles of economics ppt

Ngày tải lên: 10/07/2014, 10:20

... 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

... 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

... percentage change in the price of the second good price elasticity of supply a measure of how much the quantity supplied of a good responds to a change in the price of that good, computed as the ... attendance at the various museums around the country to see how the admission price affects attendance. In studying either of these sets of data, the statisticians would need to take account of ... affect attendance— weather, population, size of collection, and so forth—to isolate the effect of price. In the end, such data analysis would provide an estimate of the price elas- ticity of demand,...

Ngày tải lên: 15/12/2013, 11:15

... demanded. Unemployment of this sort is sometimes called structural unem- ployment, and it is often thought to explain longer spells of unemployment. As we will see, this kind of unemployment results ... finding a job. Almost half of all spells of unemployment end when the unemployed person leaves the labor force. Because people move into and out of the labor force so often, statistics on un- employment ... politicians campaigning for office often speak about how their proposed policies will help create jobs. In the preceding two chapters we have seen some of the forces that determine the level and growth of a country’s...

Ngày tải lên: 15/12/2013, 11:15

... diagram of the labor market, show the effect of an increase in the minimum wage on the wage paid to workers, the number of workers supplied, the number of workers demanded, and the amount of unemployment. 7. ... surplus of workers, it might seem profitable to reduce the wage it is offering. But by reducing the wage, the firm induces an adverse change in the mix of workers. In this case, at a wage of $10, ... 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 study of...

Ngày tải lên: 15/12/2013, 11:15

... shows the quantity of money in the economy and an index of the price level. The slope of the money line represents the rate at which the quantity of money was growing, and the slope of the price line ... stabilizes, the price level stabilizes as well. These episodes illustrate well one of the Ten Principles of Economics: Prices rise when the government prints too much money. CHAPTER 28 MONEY ... velocity of money, we divide the nominal value of output (nominal GDP) by the quantity of money. If P is the price level (the GDP deflator), Y the quantity of output (real GDP), and M the quantity of...

Ngày tải lên: 15/12/2013, 11:15

... outcomes: efficiency the 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 CHAPTER ... the producer surplus of all sellers. Quantity of Houses Painted Quantity of Houses Painted Price of House Painting 500 800 $900 0 Supply 600 1234 (b) Price = $800 Price of House Painting 500 800 $900 0 600 1234 (a) ... the equilibrium of sup- ply and demand maximizes the sum of consumer and producer surplus. In other words, the equilibrium outcome is an efficient allocation of resources. The job of the benevolent...

Ngày tải lên: 24/12/2013, 17:15

... tax revenue. This chapter has shed some light on how high the price of civilized society can be. One of the Ten Principles of Economics discussed in Chapter 1 is that markets are usually a good ... raw land. Yet the value of land often comes from improvements, such as clearing trees, providing sewers, and building roads. Unlike the supply of raw land, the supply of improvements has an elasticity ... result of a triangle depends on the square of its size. If we double the size of a tax, for instance, the base and height of the triangle double, so the deadweight loss rises by a factor of 4....

Ngày tải lên: 24/12/2013, 17:15

... the losses of the losers. Now that we have completed our analysis of trade, we can better understand one of the Ten Principles of Economics in Chapter 1: Trade can make everyone better off. If Isoland ... importer of a good, domestic consumers of the good are better off, and domestic producers of the good are worse off. ◆ Trade raises the economic well-being of a nation in the sense that the gains of the ... WELFARE ◆ Trade raises the economic well-being of a nation in the sense that the gains of the winners exceed the losses of the losers. THE GAINS AND LOSSES OF AN IMPORTING COUNTRY Now suppose that...

Ngày tải lên: 24/12/2013, 17:15

... good are better off, and consumers of the good are worse off. When a country allows trade and becomes an importer of a good, consumers are better off, and producers are worse off. In both cases, ... lower trade barriers of their own accord not only profit themselves, but also often induce the laggards to match their example. The most potent force for the worldwide freeing of trade, then, is ... well, but they do not do everything well. In this chap- ter we begin our study of another of the Ten Principles of Economics: Governments can sometimes improve market outcomes. We examine why markets...

Ngày tải lên: 24/12/2013, 17:15

... invention of a better battery, can be patented. The inventor thus obtains much of the benefit of his invention, although certainly not all of it. By contrast, a mathematician cannot patent a theorem; ... number of cars that can be supported without pollution outside of the central city and auctions off the rights to license new cars each month. Different types of plates allow different degrees of ... con- gestion. Often, as in the case of local roads, tolls are not a practical solution because the cost of collecting them is too high. Sometimes congestion is a problem only at certain times of day....

Ngày tải lên: 24/12/2013, 17:15

... capability of American producers relative to that of foreign firms. Is this argument consistent with your classification of basic research in part (a)? (Hint: Can excludability apply to some potential ... international agreement extended some aspects of [national] jurisdiction from 12 to 200 miles offshore.” Using the concept of property rights, discuss how this agreement reduces the scope of the problem. d. ... started to THE DESIGN OF THE TAX SYSTEM 243 246 PART FOUR THE ECONOMICS OF THE PUBLIC SECTOR THE FEDERAL GOVERNMENT The U.S. federal government collects about two-thirds of the taxes in our economy. It...

Ngày tải lên: 24/12/2013, 17:15

... could buy coffee in Seattle for, say, $4 a pound and then sell it in Boston for $5 a pound, mak- ing a profit of $1 per pound from the difference in price. The process of taking ad- vantage of differences ... 672 PART ELEVEN THE MACROECONOMICS OF OPEN ECONOMIES would drive up the U.S. price of coffee and drive down the Japanese price. Con- versely, if a dollar could buy more coffee in Japan than in ... States, traders could buy coffee in Japan and sell it in the United States. This import of coffee into the United States from Japan would drive down the U.S. price of coffee and drive up the Japanese...

Ngày tải lên: 24/12/2013, 17:15

Ngày tải lên: 24/12/2013, 17:15

Ngày tải lên: 24/12/2013, 17:15

Ngày tải lên: 24/12/2013, 17:15