Chapter 1 The Big Ideas in Economics Think of why some goods should be allocated by money while some not. Why demand curve is downward sloping? Two effects: 1.Substitution effect (dominent) 2.Income effect (small) The demand&supply curve can be read horizontally or vertically. You should be familiar with both ways of reading. Chapter 3 Supply&Demand Concepts: 1.A normal good: a good for which demand increases when income increases. An inferior good: a good for which demand decreases
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Assume a consumption function that takes on the following algebraic form: C = $100 + .8Y. Assume that Y = $1000 what is the level of consumption at this income level. C = $100 + .8($1000) = $100 + $800 = $900. 1. Using the above figure calculate the marginal propensity to consume between the aggregate income levels of $80 and $100. Also explain why this consumption function is linear. The marginal propensity to consume is equal to $15/$20 = .75. The consumption
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financial markets (less rules and regulations in currency markets and foreign investment) led to a rapid increase in FDI and portfolio investment. Investment makes economies more integrated as economic changes in one country influence others (CONTAGION e.g. negative effects such as the GFC and the EDC or positive effects such as new technology and booming economies). The main benefits are that it enables countries to finance their domestic economy even if domestic savings are low. The result higher investment
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International Journal of Economics and Financial Issues Vol. 3‚ No. 3‚ 2013‚ pp.743-751 ISSN: 2146-4138 www.econjournals.com Foreign Aid and Economic Growth in Egypt: A Cointegration Analysis Hoda Abd El Hamid Ali Department of Economics and Foreign Trade‚ Faculty of Commerce and Business Administration‚ Helwan University‚ Cairo‚ Egypt. Tel: 00201003452575. Email: hoda_hawary@yahoo.com ABSTRACT: There is a current and growing debate on the effectiveness of foreign aid‚ especially in
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THE EFFECTS OF FDI INFLOWS ON HOST COUNTRY ECONOMIC GROWTH Abstract: Numerous researchers have investigated the impact of FDI on economic growth. Unfortunately‚ the empirical literature has produced conflicting conclusions. Specifically‚ this paper assesses whether the FDI impact on economic activities in the host countries. This study by using a panel data for 94 countries over the 1991–2010 period‚ shows that there is not a strong complementary connection between FDI and economic
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does not degenerate and pollute the environment. Other types of major pollution are 1. Air Pollution a. Noise Pollution – Unwanted sound causes this kind of pollution. Examples like loud music cause such kind of pollution which has detrimental effect on humans and animals. b. Tobacco Smoke – Not just the smoker but also the surrounding person is affected by the smoke. It is the major cause of pollution among societies and buildings. c. Exhaust gas from vehicles – It is the major form of air
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make them dangerous and difficult to stop. To understand crises‚ we must understand the workings of financial markets and the banking system (the topics of Chapters 15–18)‚ the short-run behavior of the aggregate economy (Chapters 9–12)‚ and the effects of macroeconomic policies (Chapters 13–14). In this chapter‚ we first look at the events in a typical financial crisis and the various ways in which governments and central banks respond to them. We then use this background to examine what happened
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The Economic and Societal Effects of Immigration on California‚ Utah and Texas Immigration immensely affected the economies and societies of the United States‚ in particular. The Gold Rush had different effects on the economy and the society in California. The Mormon migration to Utah greatly developed the area. Texas‚ however‚ had a harder time developing economic prosperity. These three states had very different ways to economic and societal prosperity. Texas had a more difficult time
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Hurricane Katrina On August 29‚ 2005 Hurricane Katrina hit New Orleans and Morgan City‚ Louisiana‚ Biloxi‚ Mississippi‚ and Mobile‚ Alabama. At landfall it was a category 3‚ and it increased to a category 5. This was one of the strongest and most destructive storms to ever hit the US. It left thousands dead‚ homes and buildings destroyed‚ and the cities underwater leaving a negative impact on America socially‚ economically and politically. Socially‚ America was impacted because of how much damage
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Introduction THE NATIONAL INCOME One of the basic questions facing economics centers on whether the total output of goods and services is growing from year to year or it remains static. This question is very important because countries are keenly interested in the performance of their economy. National income estimates enable countries to calculate the total production of goods and services in a year. The lecture also focuses on the measurement of national income and their problems‚ uses
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