Presentation
... The social science chiefly concerned with the way individuals and societies choose to use their limited resources, which have alternative uses, to produce goods and services, which satisfy needs and wants, for present and future consumption. ...
... The social science chiefly concerned with the way individuals and societies choose to use their limited resources, which have alternative uses, to produce goods and services, which satisfy needs and wants, for present and future consumption. ...
Introduction to Economic Analysis
... costs. If these benefits or these costs change, the decisions also change. In other words: people respond to relative prices. If something becomes more expensive, I buy less of it; if something becomes cheaper, I buy more of it. ...
... costs. If these benefits or these costs change, the decisions also change. In other words: people respond to relative prices. If something becomes more expensive, I buy less of it; if something becomes cheaper, I buy more of it. ...
Ch 2
... As more of a good is produced, larger quantities of another good must be sacrificed if resources are already used efficiently ...
... As more of a good is produced, larger quantities of another good must be sacrificed if resources are already used efficiently ...
Practice Exam 1
... ____b. The general level of prices in the American economy is quite stable in the last year. ____c. In order to gain more market shares, American Online has offered their DSL service for free in the first three month. ____d. The unemployment rate in the United States was approaching 4% in January 20 ...
... ____b. The general level of prices in the American economy is quite stable in the last year. ____c. In order to gain more market shares, American Online has offered their DSL service for free in the first three month. ____d. The unemployment rate in the United States was approaching 4% in January 20 ...
Microeconomic Analysis
... 2. Identify and calculate producer and consumer surplus. 3. Analyze the effects of a demand/supply shock, per-unit tax, free trade, and trade restrictions on equilibrium price and quantity. 4. Describe the technical and legal barriers to entry that allow existence of a monopoly market structure. 5. ...
... 2. Identify and calculate producer and consumer surplus. 3. Analyze the effects of a demand/supply shock, per-unit tax, free trade, and trade restrictions on equilibrium price and quantity. 4. Describe the technical and legal barriers to entry that allow existence of a monopoly market structure. 5. ...
econ2 - Exalogics
... If Tom and Di specialize in producing the goods in which he and she have a comparative advantage and they exchange goods, then ____________________. they will lose as they produce only one good each one of them will gain and the other will lose each can produce a combination of goods that is outside ...
... If Tom and Di specialize in producing the goods in which he and she have a comparative advantage and they exchange goods, then ____________________. they will lose as they produce only one good each one of them will gain and the other will lose each can produce a combination of goods that is outside ...
Economic Terms
... for which they have comparative advantage, they are said to be specializing Productive Efficiency: production of maximum output for a given level of technology and resources. All points on the PPF are productively efficient Allocative Efficiency: production of the combination of goods and services t ...
... for which they have comparative advantage, they are said to be specializing Productive Efficiency: production of maximum output for a given level of technology and resources. All points on the PPF are productively efficient Allocative Efficiency: production of the combination of goods and services t ...
PS4 - Solutions
... requirements are fixed and given by: aKC = 3; aKF = 1; aLC = 2 and aLF = 4. Note: aij is the number of units of factor i required to produce a unit of good j. ...
... requirements are fixed and given by: aKC = 3; aKF = 1; aLC = 2 and aLF = 4. Note: aij is the number of units of factor i required to produce a unit of good j. ...
The history of globalisation
... trade is that nations involved in primary commodity production will find it very difficult to develop secondary or tertiary markets. Suppose, for example, that Nation A, which is involved mainly in primary commodity production, wants to build an industry that can further develop its raw commodities. ...
... trade is that nations involved in primary commodity production will find it very difficult to develop secondary or tertiary markets. Suppose, for example, that Nation A, which is involved mainly in primary commodity production, wants to build an industry that can further develop its raw commodities. ...
Supply and Demand
... The amount of goods and services that producers are willing to sell at each specific price in a given market as a given point in time. *** Supply involves the amount that producers are willing to sell at different prices; it does not mean that they will be able to sell the goods at the prices they d ...
... The amount of goods and services that producers are willing to sell at each specific price in a given market as a given point in time. *** Supply involves the amount that producers are willing to sell at different prices; it does not mean that they will be able to sell the goods at the prices they d ...
TEST 1 - Ozayturk
... 20. Which of the following would be a positive economic statement? A) Government has grown too large and should be reduced. B) There has been an increase in the rate of inflation. C) Government should be subject to the same rules as all other institutions. D) Women should be paid as much as men for ...
... 20. Which of the following would be a positive economic statement? A) Government has grown too large and should be reduced. B) There has been an increase in the rate of inflation. C) Government should be subject to the same rules as all other institutions. D) Women should be paid as much as men for ...
IPE Lectures.key
... Gold=Power Term"mercantile system" coined by Smith to This system dominated western European economic thought and policies from the sixteenth to the late eighteenth century. Resurgent in the 19th century with national competition rationale from ...
... Gold=Power Term"mercantile system" coined by Smith to This system dominated western European economic thought and policies from the sixteenth to the late eighteenth century. Resurgent in the 19th century with national competition rationale from ...
Question: Comparative Statics
... – Quantity demanded of labor declines as price of labor rises and demand for labor may fall if employers afraid to operate there due to risk posed by disease – Both push quantity down, thus lower equilibrium quantity – Opposing effects on price, so unclear change in equilibrium price, without more i ...
... – Quantity demanded of labor declines as price of labor rises and demand for labor may fall if employers afraid to operate there due to risk posed by disease – Both push quantity down, thus lower equilibrium quantity – Opposing effects on price, so unclear change in equilibrium price, without more i ...
Cameron ECON 100: SECOND MIDTERM (A) Winter 01
... a. the marginal product of labor is decreasing b. the marginal factor cost of labor is decreasing c. both a. and b. d. neither a. nor b. 3. Suppose that a firm’s total costs are given by TC = Q3 - 4Q2 + 9Q. Then its minimum average cost occurs when it produces: a. 1 unit b. 2 units c. 3 units d. 4 u ...
... a. the marginal product of labor is decreasing b. the marginal factor cost of labor is decreasing c. both a. and b. d. neither a. nor b. 3. Suppose that a firm’s total costs are given by TC = Q3 - 4Q2 + 9Q. Then its minimum average cost occurs when it produces: a. 1 unit b. 2 units c. 3 units d. 4 u ...
Wink has comparative advantage in milk and Nod in cornflakes
... day. Nod produces 45 gals of milk and 10 lbs of cornflakes. Propose a trade that would make both countries better off or at least one better off and the other no worse off. (Assume more of either good is better.) ...
... day. Nod produces 45 gals of milk and 10 lbs of cornflakes. Propose a trade that would make both countries better off or at least one better off and the other no worse off. (Assume more of either good is better.) ...
1 Solutions - Practice Test 1 1. C – note that the graph shows the
... of X and Y that are produced. This is also called economic growth. Good Y ...
... of X and Y that are produced. This is also called economic growth. Good Y ...
Trade, investment, and the environment
... marginalized by globalization 24 rich countries & 12 emerging economies are benefiting from globalization ...
... marginalized by globalization 24 rich countries & 12 emerging economies are benefiting from globalization ...
Welfare Economics and the Gains from Trade
... 1. Fundamental Theorem of Welfare Economics • Shows that the competitive equilibrium is Pareto-optimal • Pareto impreovment - A change to which nobody objects (trade where nobody is made worse off) • Pareto-optimal point - An outcome that allows no possiblity of a pareto improvement • Equilibrium poi ...
... 1. Fundamental Theorem of Welfare Economics • Shows that the competitive equilibrium is Pareto-optimal • Pareto impreovment - A change to which nobody objects (trade where nobody is made worse off) • Pareto-optimal point - An outcome that allows no possiblity of a pareto improvement • Equilibrium poi ...
Economics 11 Fall 2008 Prof Woolf
... ___ 31. Each year, some children are killed in bus crashes and their deaths might have been prevented if the buses had seat belts. According to the article Why Don't Buses Have Seat Belts, the most important reason buses don't have seat belts is that A) government regulators are ignoring the problem ...
... ___ 31. Each year, some children are killed in bus crashes and their deaths might have been prevented if the buses had seat belts. According to the article Why Don't Buses Have Seat Belts, the most important reason buses don't have seat belts is that A) government regulators are ignoring the problem ...
Problem Set 1
... the case where there is increasing opportunity cost. the case where there is constant opportunity cost. ...
... the case where there is increasing opportunity cost. the case where there is constant opportunity cost. ...
Economics what and why?
... rate is equal to the value of the marginal product of labor, in other words the marginal cost of a unit of labor (wage) is equal to the marginal benefit of that unit of labor expressed as the change in total revenues. ...
... rate is equal to the value of the marginal product of labor, in other words the marginal cost of a unit of labor (wage) is equal to the marginal benefit of that unit of labor expressed as the change in total revenues. ...
Trade barriers are government-induced restrictions on
... Most trade barriers work on the same principle–the imposition of some sort of cost on trade that raises the price of the tradedproducts. If two or more nations repeatedly use trade barriers against each other, then a trade war results. ...
... Most trade barriers work on the same principle–the imposition of some sort of cost on trade that raises the price of the tradedproducts. If two or more nations repeatedly use trade barriers against each other, then a trade war results. ...
The U.S. in the Global Economy
... About trade-related topics such as the World Trade Organization (WTO), trade adjustment assistance, offshoring of jobs, and fair-trade products ...
... About trade-related topics such as the World Trade Organization (WTO), trade adjustment assistance, offshoring of jobs, and fair-trade products ...
ECON 2010-400 Principles of Microeconomics
... reviewing the earlier class material. Asking questions in the class is encouraged, and many times is reciprocated. When supported by a lot of hard work at home, this is an enjoyable class. In each class session, rules of common courtesy are strictly followed. Do not talk to your neighbor when the cl ...
... reviewing the earlier class material. Asking questions in the class is encouraged, and many times is reciprocated. When supported by a lot of hard work at home, this is an enjoyable class. In each class session, rules of common courtesy are strictly followed. Do not talk to your neighbor when the cl ...
Comparative advantage
The theory of comparative advantage is an economic theory about the work gains from trade for individuals, firms, or nations that arise from differences in their factor endowments or technological progress. In an economic model, an agent has a comparative advantage over another in producing a particular good if he can produce that good at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior to trade. One does not compare the monetary costs of production or even the resource costs (labor needed per unit of output) of production. Instead, one must compare the opportunity costs of producing goods across countries. The closely related law or principle of comparative advantage holds that under free trade, an agent will produce more of and consume less of a good for which he has a comparative advantage.David Ricardo developed the classical theory of comparative advantage in 1817 to explain why countries engage in international trade even when one country's workers are more efficient at producing every single good than workers in other countries. He demonstrated that if two countries capable of producing two commodities engage in the free market, then each country will increase its overall consumption by exporting the good for which it has a comparative advantage while importing the other good, provided that there exist differences in labor productivity between both countries. Widely regarded as one of the most powerful yet counter-intuitive insights in economics, Ricardo's theory implies that comparative advantage rather than absolute advantage is responsible for much of international trade.