... Spanish
Schaum s Easy Outline: Writing and Grammar
SCHAUM S Easy OUTLINES
P
RINCIPLES OF
E
CONOMICS
Based on Schaum s
Outline of Theory and Problems of
Principles of Economics (Second Edition)
by ... Easy Outline: Trigonometry
Schaum s Easy Outline: Business Statistics
Schaum s Easy Outline: Principles of Accounting
Schaum s Easy Outl...
... quantity is 28 0 units.
22 PRINCIPLES OF ECONOMICS
Figure 2- 3
Solution:
a. At point A, society has more consumer goods and services in the
current period. Point C, however, provides the possibility of ... larger
quantity of consumer goods and services in the future because of addi-
tions to the economy s stock of capital resources. Here the economy s
productive capabil...
... GDP.
30 PRINCIPLES OF ECONOMICS
is largely determined by personal income, income
taxes, consumer expectations, consumer indebted-
ness, wealth, and price level. Since consumption is
impossible ... and aggregate demand remains at ADЈ,
28 PRINCIPLES OF ECONOMICS
cession and the beginning of economic recovery.
The time span between troughs and peaks is classi-
fied as an e...
... $600?
Solution:
a. Consumption for each level of disposable income is found by sub-
stituting the specified disposable income level into the consumption
42 PRINCIPLES OF ECONOMICS
2. A production shortage ... the business sector from
consumer spending?
e. What is the relationship of the cost of producing output and the
money receipts of businesses when there are only consume...
... 66 PRINCIPLES OF ECONOMICS
Depository institutions (commercial banks, savings and loan associ-
ations, and credit unions) borrow savers’ money balances and lend them
to individuals, businesses, ... its net tax revenues and/ or spending. Fiscal policy, however,
is not as easily implemented or as successful as first suggested. Suppose
a recessionary gap exists. Will Congress and t...
... steeply sloped, demand increases
have a smaller effect upon output than when aggregate supply is less
steeply sloped.
80 PRINCIPLES OF ECONOMICS
84 PRINCIPLES OF ECONOMICS
Supply-Side Economics
Concern ... banking system.
70 PRINCIPLES OF ECONOMICS
are numerous reasons why the private sector holds money balances.
These reasons can be categorized into types of demand, as...
... industries; and (4) to pro-
tect industries important for national defense. Most of the arguments are
invalid and are based on misconceptions.
90 PRINCIPLES OF ECONOMICS
Note!
Utility maximization ... leads to
higher unemployment in those nations whose exports to the U .S. have
94 PRINCIPLES OF ECONOMICS
CHAPTER 9: Economic Growth and Productivity 85
True or False Ques...
... utils
of $1
MU of 6 utils
of $1
x
x
y
y
PP
>
1 02 PRINCIPLES OF ECONOMICS
Note!
The law of diminishing returns is the reason that
the marginal cost curve is U-shaped.
Long-Run Costs
In the long ... purchase the sixth
unit of Y, the individual should spend more on X and less on Y. As she
buys more X, the consumer moves down her diminishing MU
x
schedule.
As she buys...
... the monopolist incurs a per-
unit loss of HG and a total loss of HG times OB. Only if P > AVC (so that
TR > TVC) will the monopolist stay in business and minimize short-run
total losses by ... produces at the lowest point on its
LAC curve.
126 PRINCIPLES OF ECONOMICS
Monopolistic competition is the most prevalent form of market or-
ganization in retailing. The numerou...
... imposition of high initiation fees and
long apprenticeships and requirements that employ-
ers hire only union members. This is done primarily by craft unions (i.e.,
unions of such skilled workers ... productive
resource?
Solution:
a. Firms demand resources in order to produce final commodities. It
is the consumers’ demand for final commodities that ultimately gives rise
136 PRINCIPLES...