Lecture 1 • Money is anything that is generally accepted in payment for goods and services or the repayment of debts • Wealth is the set of properties that serve to store value • Income is the flow of wealth accumulation per unit of time • The oldest form of exchange is barter‚ which requires a double coincidence of wants • The oldest form of money is commodity money: money is made out of a valuable commodity‚ like gold for example • We now use fiat money:
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ECO 111 Answer Key – WA#1 1. The "invisible hand" of the marketplace represents the idea that even though individuals and firms all act in their own self-interest‚ prices and the marketplace guide them to do what is good for society as a whole. Note: the “invisible hand” does not guarantee equilibrium. At the same time‚ it does not imply wealth redistribution – which is the worst thing for any economy. The easiest way to understand wealth redistribution is with the following example: suppose
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Question 1 1. Economics studies _____. How society manages its scarce resources social welfare ethical use of resources protection of workers’ rights 5 points Question 2 1. GDP ______ Is the Gross Domestic Price Index Measures the market value of all final goods and services produced in the U.S. in a given year Measures the cost of inputs to factories in a given year Measures the unemployment rate 5 points Question 3 1. Inflation results in _____. A general decrease in
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Issues in Political Economy ‚ 14. Elizabeth. (2006). the oxford dictionary of Phrase and Fable. Retrieved February 10‚ 2010‚ from Encyclopedia: http://www.encyclopedia.com/doc/1O214-StockExchange.html Encyclopedia Gay‚ R. D. (March 2008). Effect of Macroeconomic Variables on Stock Market Rturns for Four Emerging Economies – Brazil‚ Russia‚ India and China. International Business & Economics Research Jornal ‚ 7. Gulf News. (2008). Investment. Retrieved March 15‚ 2010‚ from gulfnews website: http://gulfnews
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that the economy will return to its original full employment equilibrium according to: (a) the population dynamics theory. (b) psychological theories of the business cycle. (c) Joseph Schumpeter’s theory of creative destruction. (d) classical macroeconomic theory. (e) external shock theory. A graph showing a positive relationship between the interest rate and the expected inflation rate would illustrate the: (a) Cambridge equation. (b) Friedman’s liquidity effect. (c) Fisher effect. (d) Laffer
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Deliverable Week 4 Learning Team Deliverable TA-4D) Recessions seem to show up every so often and create economic hardship. One might think that macroeconomic policymakers could tame the business cycle and implement policies that would end recessions. Are recessions a necessary fact of macroeconomic life? If not‚ what would it take to eliminate them? If they are unavoidable‚ what types of business can benefit from them? How would a recession affect your firm? Economists
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PROJECT PROPOSAL Strategies and Tactics Employed by BMW in Pricing‚ Production and Resource Utilization using Micro And Macroeconomic Theory MBA Full time Sept. Intake 2012 Course Module Managerial Economics Course Co ordinator Ceyhun Elci
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Econ 110A: Macroeconomics • Text: Macroeconomics‚ by Olivier Blanchard 5th edition-updated‚ Pearson/Prentice Hall or second edition of UCSD custom • Professor Marjorie Flavin Office: Economics Building #216 General email: mflavin@ucsd.edu Better email: Instead of using my general email above‚ please email from within TED. Office hours: Tuesdays‚ 10:00 – 12:00 or by appt. Lecture 1‚ Tuesday‚ January 10 1 Web site is on TED. If you are enrolled in the course as a regular student‚ you should already
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of financial stability for overall macroeconomic performance‚ but questions related to the health of the financial system have traditionally taken a back seat to those more directly linked to the process of inflation and growth. In recent years‚ however‚ financial stability has gained greater prominence on central bankers’ agenda. Monitoring the performance of the financial sector and the interaction between the health of financial institutions and macroeconomic stability has increasingly preoccupied
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success or failure of their enterprise. How does macroeconomics affect business? Macroeconomics is the field of economics that studies the behavior of the economy as whole and not just specific companies‚ but the entire industries and economies. This study looks at economy-wide phenomena‚ such as Gross National product and how it is affected by changes in McKenzie 2 unemployment‚ national income‚ rate of growth‚ and price levels. Macroeconomics look at how an increase or decrease in net exports
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