TOPIC 1: INTRODUCTION TO ECONOMICS Chapter 1: What is Economics about? 1.1 • Economic Problem: how a society can satisfy the unlimited wants with the limited resources available. • Opportunity Cost: represents the cost of satisfying one want over an alternative want. Also known as economic cost/real cost. • Wants: are the material desires of individuals or the community. They provide utility/satisfaction/pleasure when consumed. ○ Needs: are wants‚ but are basic necessities
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Naked Economics Chapter 1 What are the two basic assumptions that economists make about individuals and firms? What is the role and significance of prices in the market economy? Prices are light traffic signals in an economy. They self-regulate the economy and are critical to a market. That is why socialism and its attempts to set prices cannot function properly because it never allows for the true price to be discovered. What’s so great about a market economy anyway? A market economy is
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References: Arthur O. and Sheffrin S. M. (2003). Economics: Principles in Action. Upper Saddle River‚ New Jersey Christopher R.‚ Lipsey and Richard (2008). “Macroeconomics”. Toronto‚ Ontario‚ Canada: Pearson Education Canada. Harris‚ Seymour E. (2005). The New Economics: Keynes ’ Influence on Theory and Public Policy. Kessinger Publishing. Sloman‚ John (2004). Economics. Penguin
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PSCI 101 Essay Assignment- Gilberto Nava The article I’m summarizing is named‚ The Economic Benefits of Comprehensive Immigration Reform. It is written by Raúl Hinojosa-Ojeda and it was published in the CATO Journal’s winter 2012 issue. Dr. Ojeda is the founding director of the North American Integration and Development Center and associate professor in the Division of Social Sciences and the César E. Chávez Department of Chicana and Chicano Studies at the University of California‚ Los Angeles
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check and balance if low quality raw material is being used. 3. Substitutes No effect 4. Suppliers Imposition of additional taxes or charge of import duty will affect bargaining power of suppliers. 5. Rivalry No effect. Economic Factors: 1. Entrants Rapid growth in inflation poses a threat for new entrants with regard to their survival. They are threatened by increasing interest rates as well. 2. Buyers Inflation causes fluctuations in prices. Consumers may benefit
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Mankiw’s 10 Principles of Economics: How People Make Decisions 1. People face tradeoffs: To get one thing‚ you have to give up something else. You may have heard economists say “there is no such thing as a free lunch”. What they mean by this is that‚ for example‚ you might get a free bowl of soup at the student co-op‚ but the soup is not free because you have to give up 35-minutes waiting in line to be served. 2. The cost of something is what you give up to get it: Making a decision requires
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The Power of Markets•In order to understand economics you must understand markets and how they work. Markets are created when an exchange of goods and services take place. They are composed of individuals and businesses trying to maximize their utility. The market economy is a powerful force for making our lives better. •Maximizing a person utility doesn’t mean their being selfish‚ but it all depends on what gives the person utility. •The objective of business is to make profit and profit
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Denise Dykes October 26‚ 2012 ECON202-1204A-02 Behavioral Economics Considering George Foreman has no expertise on grills or fat-free cooking‚ one has to wonder why consumers were so influenced to buy the George Foreman Grill‚ in which he endorsed. Is consumer behavior really affected by celebrity endorsements? When asked in surveys‚ consumers claim that celebrity endorsements do not influence their buying decisions. Marketing strategist‚ Mark Babej‚ argues that responses to these surveys
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Differences Between Keynesian Economics and Classical Economics Economics thinking has evolved over time as economists develop new economic theories to fit the realities of a changing world. Monetary and fiscal policies change over time. And so does our understanding of those policies. Some economists argue that policies that lower the unemployment rate tend to raise the rate of inflation. Others insist that only unexpected inflation can influence real GDP and employment. If the latter economists
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Introduction The purpose of this paper is to connect and apply economic theories and concepts to real–life situations in the competitive market. Specifically‚ the paper will examine a CBC News article‚ ‘Starbucks Gives Its Prices a Jolt’ from 2006‚ which states Starbucks coffees and whole beans prices are increasing by 1.9% and 3.9%‚ respectively. Why is the price of a cup of Starbucks coffee rising? The CBC News article quotes the Starbucks spokeswoman who explains‚ “the company decided
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