traditional‚ command/planned‚ market ➢ most of the country are mixed economies (more than one type) Chapter 2 : Economic Models Trade-offs and Trade • An important assumption in economic models is the other things equal assumption (ceteris paribus)‚ which allows analysis of the effect of a change in one factor by holding all other relevant factors unchanged. • one important economic model is the production possibility frontier (PPF) • it illustrates opportunity cost‚ efficiency and
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Barrons Final Test 1. In the long run an increase in the money supply results in E a proportional increase in price level because the classical notion of monetary neutrality is based on the idea that the money supply and the price level is proportionally related. 2. You buy 100 shares in XYZ Corporation on the internet and your broker charges you $29.95 C this increase the GDP by $29.95 because financial transactions are not counted in GDP but the commission is
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NATURAL RESOURCE AND ENVIRONMENTAL ECONOMICS (3rd Edition) Perman‚ Ma‚ McGilvray and Common SUGGESTED ANSWERS Answers to Questions in Chapter 6 Discussion questions 1 ‘Only the highest standards of environmental purity will do.’ Discuss. The opinion expressed here is not regarded by economists as being valid in general. It suggests that resources should be devoted without limit to cleaning up (or preventing) environmental pollution or degradation‚ irrespective of the magnitude of
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ECONOMICS CHAPTER 1 ECONOMIC WAY OF THINKING SCARE RESOURCES WEALTH OF THE NATIONS ECONOMICS: ADAM SMITH STAR CITY Scarcity Scarcity is the basic and central economic problem confronting every society. It is the heart of the study of economics and the reason behind its establishment. Authors have defined scarcity in various way some if which are complexly stated. One author defines scarcity as a commodity or service being in short supply‚ relatives to its demand (Kapur
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QUESTION 1 a. A downward-sloping demand curve shows in both graphs when the quantity at each price is doubled what it was. However‚ the curve in demand for pharmaceutical drugs is drawn with a relatively steep slope as inelastic products. Equilibrium price down-sloping along the demand curve while quantity in both market increased to some extent. b. In inelastic demand of pharmaceutical drugs‚ the percentage change in price is greater than the percentage change in quantity demanded. While in elastic
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Ruel Kristofer C. Sabangan 3 – E1 Determining the Impacts of Labor Participation Rate‚ Unemployment Rate and Gross National Income per capita On Total Crime Rate in the Philippines I. Introduction Crime is inevitable‚ it occurs every day and it might be even happening right now. It is a nuisance and it greatly affects the society. People has their own reason for doing this kind of atrocity‚ it is a common understanding that if a person is without a job‚ he/she wouldn’t gain income‚ without
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curve- is the horizontal sum of the demand curves of all consumers in the market. 4 2 1 0 1 • Law of demand- in a given time period‚ the quantity demanded of a good increases as its price falls‚ other things remaining the same(ceteris paribus). • Qd=f(price) • Negative relationship • When price of product rises? • When price of product falls? • Change in quantity demanded- is a movement along the demand curve due to price changes‚ if other factors are held constant. • Upward
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3X (d) Y = 3 3. Identify the 2 curves in question 2 which are positively sloped. Explain. (b) Identify which curve in question 2 is negatively sloped. Explain. (c) Identify which curve in question 2 has zero slope. Explain. 4. What does ceteris paribus mean? Why is the concept useful to economists? 5. Why does the distinction between a positive and a normative state matter for economics? 6. What is a model? Why do economists use models. 7. Why is the shape of the economy’s production possibility
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Business Economics Report | 5 2 Essay – Microeconomics Evaluate the decision by Google to buy Motorola. What economic concepts would support this investment and in your opinion why might the purchase of Motorola be anti-competitive? “We are on a turning-point in the world of personal technology. For around 30 years PCs in various forms have been people’s main computing devices. Now the rise of smartphones and tablet computers threatens to erode the PC’s dominance‚ prompting talk that a “post-PC”
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Portuguese Fiscal Policy Assessment Abstract: This work tries to do an overview of the Portuguese Fiscal situation ex-post the 2008 financial crisis. There is a short description of the GDP evolution and how it affected fiscal revenues and expenditures: revenues decreased with the crisis and then got up with taxes increasing and expenditures add an upward trend (from 2008-2010‚ for 2011 everything is projected). Moreover‚ we compute four types of fiscal balances (total‚ primary‚ adjusted from
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