Tài liệu Ten Principles of Economics - Part 10 ppt

... various mixes of outputthat an economy can produce. It illustrates one of the Ten Principles of Economics inChapter 1: People face tradeoffs. Here the farmer faces a tradeoff between produc-ing meat ... case of babies and mini-vans. Couples often buy a minivan in anticipation of the birth of a child. TheViolentCrimes (per 1,000people)Police Officers(per 1,000 people)0Figure 2A-7GRAPHSUGGESTINGREVERSECAUSALITY. ... 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. Inthe end,...

... sum of all theindividual demands for a particular good or service.Catherine’s DemandPrice of Ice-CreamConePrice of Ice-CreamConeNicholas’s Demand0 1 2 3 4 5 6 7 8 9 10 11 12Quantity of Ice-Cream ... of Ice-Cream Cones$3.001.502.002.501.000.50012345678 9101 112Quantity of Ice-Cream Cones$3.001.502.002.501.000.50؉demand curvea graph of the relationship betweenthe price of a ... a good and thequantity demandedPrice of Ice-CreamCone02.502.001.501.000.501 2 3 4 5 6 7 8 9 10 11Quantity of Ice-Cream Cones$3.0012Figure 4-1 CATHERINE’SDEMANDCURVE.This...

... on labor-force participation.The labor-force participation rate measures the percentage of the total adult pop-ulation of the United States that is in the labor force:Labor-force participation ... percent.Hence, in 1998, two-thirds of the U.S. adult population were participating in the labor market, and 4.5 percent of those labor-market participants were with-out work.Table 2 6-1 shows the statistics ... rates of unemployment. Second, blackshave similar rates of labor-force participation as whites, and they have muchhigher rates of unemployment. Third, teenagers have lower rates of labor-forceparticipation...

... has a fifty-fifty chance of hiring the compe-tent one. By contrast, if the firm offers any lower wage, it is sure to hire the incom-petent worker.In many situations in life, in-formation ... 601was profitable for the firm. Henry Ford himself called the $5-a-day wage “one of the finest cost-cutting moves we ever made.”Historical accounts of this episode are also consistent with ... the price of a shirt is 10 ham-burgers and the price of a hamburger is 1 /10 of a shirt, prices are never quoted inthis way. Similarly, if you take out a loan from a bank, the size of your future...

... 1921 = 100 )Index(July 1921 = 100 )(c) GermanyPrice level1Index(Jan. 1921 = 100 )(d) Poland 100 ,000,000,000,0001,000,000 10, 000,000,0001,000,000,000,000 100 ,000,000 10, 000 100 100 ,000 10, 0001,000 100 19251924192319221921Money ... Poland 100 ,000,000,000,0001,000,000 10, 000,000,0001,000,000,000,000 100 ,000,000 10, 000 100 100 ,000 10, 0001,000 100 19251924192319221921Money supplyMoneysupplyPrice level 100 ,000 10, 0001,000 100 1925192419231922192119251924192319221921Price levelMoneysupplyIndex(Jan. 1921 = 100 ) 100 10, 000,000 100 ,0001,000,000 10, 0001,00019251924192319221921Figure ... Inflation rate.This way of looking at the nominal interest rate is useful because different eco-nomic forces determine each of the two terms on the right-hand side of this equa-tion. As we discussed...

... outcomes:efficiencythe property of a resource allocation of maximizing the total surplusreceived by all members of societyequitythe fairness of the distribution of well-being among the members of societyCHAPTER ... planner. The benevolent social planner is anall-knowing, all-powerful, well-intentioned dictator. The planner wants to maxi-mize the economic well-being of everyone in society. What do you suppose ... consider the benefits sellers re-ceive from participating in a market. As you will see, our analysis of sellers’ wel-fare is similar to our analysis of buyers’ welfare.152 PART THREE SUPPLY AND DEMAND...

... that part of the disagree-ment may rest on different views about the elasticity of labor supply and thedeadweight loss of taxation.“LET ME TELL YOU WHATI THINK ABOUT THE ELASTICITY OF LABORSUPPLY.”QUICK ... tax revenue.This chapter has shed some light on how high the price of civilized society canbe. One of the Ten Principles of Economics discussed in Chapter 1 is that markets areusually a good ... the dead-weight loss rises by a factor of 9.The government’s tax revenue is the size of the tax times the amount of thegood sold. As Figure 8-6 shows, tax revenue equals the area of the rectangle...

... importer of a good, domesticconsumers of the good are better off, and domestic producers of the good areworse off.◆ Trade raises the economic well-being of a nation in the sense that the gains of the ... 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 ... a profit. As a result, they laid off their workers and shut down their fac-tories. Today, much of the textiles and clothing that Americans consume are im-ported from abroad.The story of the...