Note Book Chapter 1 Getting Started 1.1 DEFINITION AND QUESTIONS 1. Scarcity is the condition that arises because wants exceeds the ability of resources to satisfy them. 2. Scarcity is the condition that arises because wants exceed the ability of resources to satisfy them. Scarcity is not eliminated when people become rich‚ movie goers are able to see the next The Social Networ installment‚ or people gain employment because of the movie’s release. In all cases‚ people will have wants that
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Economics 111 – Study Guide CHAPER 1 – Economic and Economic Reasoning Economics: The study of how human beings coordinate their wants and desires given the decision making mechanism‚ social customs and political realities of society. The three central coordination problems any economy must solve are: 1. What and How much to produce 2. How to produce it 3. For whom to produce it Economist find that individuals want more than is available‚ given how much their willing to work. That
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(b) Discuss whether the Singapore government should change its policies for managing the balance of payments. The policies for managing the balance of payments could be directed to the current account via expenditure switching (exchange rates and protectionism)‚ expenditure dampening or raising through Fiscal Policy and Monetary Policy‚ or through long-term measures like supply side policies (increasing general education‚ subsidies‚ etc.). The policies directed at the capital account could include
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Ch. 26 1) List and explain the characteristics of the market structure known as monopolistic competition. 2) List some examples of monopolistically competitive firms. 3) Explain‚ graphically and verbally‚ how a firm in monopolistic competition derives its demand curve and marginal revenue (MR) curve. 4) Explain‚ graphically and verbally‚ how a firm in monopolistic competition determines what quantity to produce and what price to charge in order to maximize its profits. 5) Explain the impact
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Chapter 12 National Income Accounting and the Balance of Payments National Income Accounts Gross National Product is the value of all final goods and services produced by its factors of production and sold on the mkt in a given time period. It can be divided into: 1. consumption 2. investment 3. govn’t purchase 4. current account balance Capital Depreciation and National Transfers GNP has to be equal to national income. In order for this to hold we need to make some adjustments
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1. What is the difference between a soft commitment and no commitment? In making no commitment‚ a firm has not taken an action or made an investment that alters its own and/or its rival’s competitive responses. In contrast‚ a soft commitment is one that‚ no matter what its competitors do‚ the firm will behave less aggressively than if it had not made the commitment. Thus‚ in a Cournot game a soft commitment will cause the firm to produce relatively less output‚ while in a Bertrand game a soft
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Sample Test Questions for ECON 102 with answers marked 1. Economics deals primarily with the concept of a. scarcity. b. money. c. poverty. d. banking. 2. The adage‚ "There is no such thing as a free lunch‚" means a. even people on welfare have to pay for food. b. the cost of living is always increasing. c. people face tradeoffs. d. all costs are included in the price of a product. 3. Government policies resulting in reduced efficiency include (i) the welfare system
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Problem Set # 4 [75 Points] Econ 305 – Prof: Henry Terrell Due: May 9th‚ 2008 before 9:00 AM Name: ID: TA: Problem 1 [25 Points] Consider the following extended classical economy (in which the misperception theory holds): AD Y=600+20(M/P) SRAS Y=YFE +2(P - Pe) Okun’s Law (Y-YFE)/YFE=-2(u-unr)
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ST ANDREW’S JUNIOR COLLEGE H1 ECONOMICS (8819) JC1 Promotional Examinations Revision Package 2011 Contents Section A: Case Studies 1. 2007 TPJC Prelims H1 Paper CSQ1: China’s Water Woes 2. 2007 GCE A-Level Paper H1 CSQ1: International Tourism (covered in Lecture) 3. 2008 CJC Prelims H1 Paper CSQ1: The Illegal Drug Market 4. 2009 RVHS Year 5 End of Year Exams Paper CSQ1: Challenges of the Agricultural Sector Section B: Essays 1. 2006 SAJC H1 Final Exams: Application of Demand and Supply
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“In the first quarter of 2010‚ the market for private homes in Singapore saw a record breaking prices and transaction volumes‚ prompting calls for government intervention to cool the market.” Using economic analysis‚ explain the reasons for the “record breaking prices and transaction volumes” for private homes in Singapore. Private homes in Singapore seeing a record breaking prices and transaction volumes is due to the actions of both the consumers and the producers‚ which will cause a shift in
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