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Tài liệu Ten Principles of Economics - Part 5 ppt

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... 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, ... the 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 ... easier to see in the 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...

Tài liệu Ten Principles of Economics - Part 10 ppt

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... percentagechange in the price of the secondgoodprice elasticity of supplya measure of how much the quantitysupplied of a good responds to achange in the price of that good,computed as the ... either of these sets of data, thestatisticians would need to take account of other factors that affect attendance—weather, population, size of collection, and so forth—to isolate the effect of price. ... low.The Cross-Price Elasticity of DemandEconomists use the cross-price elasticity of demand to measure how the quantity demanded of one goodchanges as the price of another good changes. It is...

Tài liệu Ten Principles of Economics - Part 62 ppt

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... shows the quantity of money in the economy and an index of the pricelevel. The slope of the money line represents the rate at which the quantity of money was growing, and the slope of the price line ... 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 ... quantity of money (M) times the velocity of money(V) equals the price of output (P) times the amount of output (Y). It is called thequantity equation because it relates the quantity of money...

Tài liệu Ten Principles of Economics - Part 15 ppt

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... 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 ... the producer surplus of all sellers.Quantity of Houses PaintedQuantity of Houses PaintedPrice of HousePainting500800$9000Supply6001234(b) Price = $800Price of HousePainting500800$90006001234(a) ... introduced the basic tools of welfare economics—consumer and pro-ducer surplus—and used them to evaluate the efficiency of free markets. Weshowed that the forces of supply and demand allocate...

Tài liệu Ten Principles of Economics - Part 17 ppt

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... result of a triangle depends on the square of its size. If we double the size of a tax, forinstance, the base and height of the triangle double, so the deadweight loss rises bya factor of 4. ... raw land. Yet the value of land often comes fromimprovements, such as clearing trees, providing sewers,and building roads. Unlike the supply of raw land, the supply of improvements has an elasticity ... the wage they can earn legally.In each of these cases, the quantity of labor supplied responds to the wage (theprice of labor). Thus, the decisions of these workers are distorted when their...

Tài liệu Ten Principles of Economics - Part 18 ppt

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... 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 ... Sellers are worse off because producer surplus falls by the area B. The gains of buyers exceed the losses of sellers, and total surplus increases by the area D.This analysis of an importing country...

Tài liệu Ten Principles of Economics - Part 20 ppt

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... good are better off, andconsumers of the good are worse off. When a countryallows trade and becomes an importer of a good,consumers are better off, and producers are worse off. Inboth cases, ... lower tradebarriers of their own accord not onlyprofit themselves, but also often inducethe laggards to match their example. Themost potent force for the worldwidefreeing of trade, then, is ... effect of this quota on the U.S. sugarmarket. Label the relevant prices and quantitiesunder free trade and under the quota.b. Analyze the effects of the sugar quota using thetools of welfare...

Tài liệu Ten Principles of Economics - Part 23 ppt

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... number of cars that can besupported without pollution outside of the central city and auctions off therights to license new cars each month.Different types of plates allow differentdegrees of ... thenumber of beneficiaries and whether these beneficiaries can be excluded fromenjoying the good. A free- rider problem arises when the number of beneficiariesis large and exclusion of any one of them ... to charity can free ride on the generosity of others. Inthis case, taxing the wealthy to raise the living standards of the poor can makeeveryone better off. The poor are better off because they...

Tài liệu Ten Principles of Economics - Part 66 ppt

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... make a profit from thissituation. What would be your profit per bushel of rice? If other people exploit the same opportunity,what would happen to the price of rice in Japanand the price of rice ... the ratio of the foreign price level (mea-sured in units of the foreign currency) to the domestic price level (measured inunits of the domestic currency). According to the theory of purchasing-power ... the central bank printslarge quantities of money, that money loses value both in terms of the goods and services itcan buy and in terms of the amount of other currencies it can buy.We can now...

Tài liệu Ten Principles of Economics - Part 67 ppt

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... U.S. exports of aircraft will fall, and U.S.imports of aircraft will rise. In this case, the import quota on Japanese cars will in-crease net exports of cars and decrease net exports of planes. ... for dollars causes the value of the dollar to appreciatefrom E1to E2. This appreciation of the dollar tends to reduce net exports, offsetting thedirect effect of the import quota on the trade ... E1to E2. The appreciation of the exchange rate pushes the trade balance towarddeficit.688 PART ELEVEN THE MACROECONOMICS OF OPEN ECONOMIESFirst, we determine which of the supply and demand...

Tài liệu Ten Principles of Economics - Part 70 ppt

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... overa period of a year or two, an increase in the overall level of prices in the economytends to raise the quantity of goods and services supplied, and a decrease in thelevel of prices tends ... P). This is just another way of representing the classicalanalysis of growth and inflation we conducted in Chapters 24 and 28.The purpose of developing the model of aggregate demand and aggregatesupply, ... price level.Notice that each of the three theories of short-run aggregate supply empha-sizes a problem that is likely to be only temporary. Whether the upward slope of the aggregate-supply curve...

Tài liệu Ten Principles of Economics - Part 26 ppt

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... particular, the number of workers isrising slowly, while the number of retirees is risingquickly. Concerned about the future of Social Security,some members of Congress propose a “freeze” on theprogram.a. ... measurement of a firm’s total cost is moresubtle.total revenuethe amount a firm receives for thesale of its outputtotal costthe market value of the inputs a firmuses in productionprofittotal ... THE DESIGN OF THE TAX SYSTEM 265c. What are the disadvantages of eliminating TANFand allocating the savings to the EITC?10. The Tax Reform Act of 1986 eliminated the deductibility of interest...

Tài liệu Ten Principles of Economics - Part 77 ppt

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... 33 THE SHORT-RUN TRADEOFF BETWEEN INFLATION AND UNEMPLOYMENT 785rate of inflation. The widespread belief that there is a permanent tradeoff is asophisticated version of the confusion between ... tradeoff betweeninflation and unemployment. That is, after an adversesupply shock, policymakers have to accept a higher rate of inflation for any given rate of unemployment, or ahigher rate of ... profit.There is no reason for society to suffer through the booms and busts of thebusiness cycle. The development of macroeconomic theory has shown policy-makers how to reduce the severity of...

Tài liệu Ten Principles of Economics - Part 79 ppt

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... de-manded of a good falls when theprice of the good rises law of supply—the claim that, otherthings equal, the quantity supplied of a good rises when the price of thegood rises law of supply ... elasticity of demand—ameasure of how much the quantitydemanded of one good responds toa change in the price of anothergood, computed as the percentagechange in quantity demanded of thefirst ... rate,regardless of the rate of inflation natural rate of unemployment—thenormal rate of unemploymentaround which the unemploymentrate fluctuates GLOSSARY 813depreciation—a decrease in the valueof...