... 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...
... 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 capabilities and thus production-possibilities ... the
price of taxi rides is increased.
24 PRINCIPLES OF ECONOMICS
E
S
is a pure number and is positive because price and quantity move
in the same direction....
... 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 ... billion; for consumption function CЉ
there is less saving at each level of disposable income than there is for
consumption function CЈ.
38 PRINCIPLES OF ECONOMICS
aggregate demand o...
... $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 ... Investment demand should shift downward. Businesses’ purchas-
es of durable equipment should fall since such purchases would expand
44 PRINCIPLES OF ECONOMICS
productive...
... 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 Qu...
... 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 less of Y, she moves up ... increases in a smaller
proportion, giving decreasing returns to scale or increasing costs. In-
creasing returns to scale or economies of mass production may result be-
cause of divisi...
... 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 ... cause
an upward shift in the demand curve it faces. (This, however, will also
shift cost curves up.) If this monopolist still incurs a loss after having con-
sidered all of these possibi...
... 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...