... 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 ... veil of ignorance would beto maximize the average utility of members of society, and the resulting notion of justice would be more utilitarian than Rawlsian.LIBERTARIANISMA third view of inequality ... ariseout of the voluntary exchanges and actions of persons.Whereas utilitarians and liberals try to judge what amount of inequality is desir-able in a society, Nozick denies the validity of this...
... effect onlabor supply of winning such a large prize is substantial.Similar results were found in a study, published in the May 1993 issue of theQuarterly Journal of Economics, of how receiving a ... cutting back on the luxury of meatand buying more of the staple food of potatoes. Thus, it is argued that a higherprice of potatoes actually raised the quantity of potatoes demanded.Whether ... of consumer choice does allow demand curves to slopeupward. Yet such occurrences are so unusual that the law of demand is as reliablea law as any in economics. Quantity of MeatAQuantity of Potatoes0ECI2I1Initial...
... the health of our children, thequality 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 publicdebate ... Americans.506 PART EIGHT THE DATA OF MACROECONOMICSCASE STUDYINTERNATIONAL DIFFERENCES IN GDP AND THEQUALITY OF LIFEOne way to gauge the usefulness of GDP as a measure of economic well-beingis 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 themarket value of the paper to the market value of the...
... Bureau of Labor Statistics did revise the basket of goodsBEHIND EVERY MACROECONOMIC STATISTICare 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 THECOST OF LIVING508 PART EIGHT THE DATA OF MACROECONOMICSmaternal mortality, higher rates of child malnutrition, and ... andpro-reform director of the Institute of Economic Problems of the TransitionalPeriod.“Seven years ago to report anincrease in the amount of productionwas to become a Hero of SocialistLabor,”...
... ideas. In the rest of this chapter, we look at Ten Principlesof Economics. These principles recur throughout this book and are introduced here to give youan overview of what economics is all ... changessmall incremental adjustments to aplan of actionCHAPTER 1 TEN PRINCIPLESOFECONOMICS 7thinking at the margin. Imagine that a plane is about to take off with ten emptyseats, and a standby ... individuals whomake up the economy, we start our study ofeconomics with four principlesof in-dividual decisionmaking.PRINCIPLE #1: PEOPLE FACE TRADEOFFSThe first lesson about making decisions is...
... task. Thefield ofeconomics 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 Principlesof Economics highlighted ... three examples of important tradeoffs that you facein your life.2. What is the opportunity cost of seeing a movie?3. Water is necessary for life. Is the marginal benefit of aglass of water large ... introduction of competing products hasreduced the expected sales of your new product to$3 million. If it would cost $1 million to finishProblems and ApplicationsCHAPTER 1 TEN PRINCIPLESOF ECONOMICS...
... source of the inefficiency were eliminated, the economycould move from point B to point A, increasing production of both cars (to 700)and computers (to 2,000).One of the Ten PrinciplesofEconomics ... less of the other. When the economy moves frompoint A to point C, for instance, society produces more computers but at the ex-pense of producing fewer cars.Another of the Ten PrinciplesofEconomics ... infeasible point. Show the effects of a drought. ◆ Define microeconomics and macroeconomics.THE ECONOMIST AS POLICY ADVISEROften economists are asked to explain the causes of economic events. Why, for...
... well-being of others?Explain.2. Suppose that the residents of Vegopia spend all of theirincome on cauliflower, broccoli, and carrots. In 2001they buy 100 heads of cauliflower for $200, 50 bunches of ... overall level of prices. The consumer price index compares theprice of a fixed basket of goods and services to the price of the basket in the baseyear. Only occasionally does the Bureau of Labor ... in the price of chickenor a 10 percent increase in the price of caviar? Why?2. Describe the three problems that make the consumerprice index an imperfect measure of the cost of living.3....
... of capital and be able toproduce 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 ... capital.One of the Ten PrinciplesofEconomics presented in Chapter 1 is that people facetradeoffs. This principle is especially important when considering the accumula-tion of capital. Because ... experienced more rapidly growing productivity.Indeed, one of the Ten PrinciplesofEconomics in Chapter 1 is that a country’s stan-dard of living depends on its ability to produce goods and services.Hence,...
... throughpolicies that promote economic growth. Most of this chapter is summarized in one of the Ten Principlesof Economics: A country’s standard of living depends on itsability to produce goods ... takessome of this additional income back to the United States in the form of profit. Sim-ilarly, when an American investor buys Mexican stock, the investor has a right toa portion of the profit ... extra unit of an inputdeclines as the quantity of theinput increasescatch-up effectthe property whereby countriesthat start off poor tend to growmore rapidly than countriesthat start off richCHAPTER...
... the PRINCIPLES OFECONOMICS Get any book for free on: www.Abika.com 1 Principles ofEconomics By Alfred Marshall Get any book for free on: www.Abika.com PRINCIPLES OFECONOMICS ... series of thoughts and feelings, so the life of society is something more than the sum of the lives of its individual members. It is true that the action of the whole is made up of that of its ... their praises of it. This was partly because they saw clearly, what we of this generation have in a great measure forgotten, the cruelty of the yoke of custom PRINCIPLES OFECONOMICS Get...
... the various mixes of outputthat an economy can produce. It illustrates one of the Ten PrinciplesofEconomics inChapter 1: People face tradeoffs. Here the farmer faces a tradeoff between produc-ing ... 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, ... ac-tivities of millions of people with varying tastes and abilities. As a starting pointfor this analysis, here we consider the reasons for economic interdependence. One of the Ten Principlesof Economics...