Individual wants - the desires of each person Collective wants - wants of the whole community The four economic problem: What to produce How much to produce How to produce How to distribute production Whenever we choose to produce or consume a product‚ we miss out on an alternative product that could have been produced using those resources. This is known as the opportunity cost. 1.2 - The Production Possibility Frontier The Production Possibility Frontier is a graphical representation
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ECO 2013-02 Spring 2003 Second Midterm‚ 6 March 2003. 1) The quantity of real GDP supplied ________ the amount of ________. A) increases as; labor input decreases B) decreases as; capital input increases C) decreases as; capital and labor input decreases D) is unaffected by; technology 2) If the economy is at the natural rate of unemployment‚ A) real GDP > potential GDP. B) real GDP < potential GDP. C) real GDP = potential GDP. D) All of the above can occur when the economy is
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c) 5450‚ 5500 d) 5900‚ 6000 e) 500‚ 4500 2. Based on the Keynesian cross diagram‚ if output equals 4‚000 planned aggregate expenditure is _____ output and firms will ____ production. a) less than; decrease d) greater than; increase b) less than; increase e) equal to; not change c) greater than; decrease 3. In the long run‚ total spending only influences: a) potential output. d) actual output. b) productive capacity. e) labor supply and demand. c) inflation. Page 2 of 10 ECO 2013 – Section 0008
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Aggegate Implications of Microeconomic Consumption Behaviou’‚ American Economic Review‚ Papers and Proceedings‚ [24] Carroll‚ C. D. (2000c) ‘ ‘Risky Habits’ and the Marginal Propensity to Consume Out of Permanent Income’‚ International Economic Journal‚ 14‚ pp [25] Carroll‚ C. D. (2001a)‚ ‘Precautionary Saving and the Marginal Propensity to Consume Out of Permanent Income’‚ NBER Working Paper Number W8233. [26] Carroll‚ C. D. (2001b)‚ ‘A Theory of the Consumption Function‚ With and Without Liquidity Constraints’
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1 DESIGN OF QUESTION PAPER ECONOMICS Class – XII Marks – 100 Duration – 3 hrs. 1. Weightage by type of questions Type Number of Mark Total Estimated time a questions candidate is expected to take to answer Long answer questions 6 6 36 60 minutes Short answer questions I 6 4 24 36 minutes Short answer questions II 10 3 30 50 minutes Very short answer questions 10 1 10 15 minutes 2. Weightage by content Unit No Unit Sub-Units Marks 1 Introduction
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mid term Last Name: ______________________________________________________________________ First Name: ______________________________________________________________________ Student Number: __________________________________________________________________ UNIVERSITY OF SYDNEY ECON1002 INTRODUCTORY MACROECONOMICS Mid-semester Exam Semester One‚ 2012 Instructions: ________________________________________________________________________________ Time allowed: 60 minutes (plus 5 minutes reading
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MACRO ECONOMICS Classical Dichotomy The classical dichotomy is rooted in the understanding that in the long run‚ real output is determined by “real” inputs such as labour‚ capital‚ natural resources and TFP‚ but not money. This means that changes in the money supply determine changes in the price level over time‚ but not real output. However‚ it is important to remember that the classical dichotomy applies only in the long run. Almost all economists would agree that money and price can have very
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first part‚ Ca‚ is called autonomous consumption‚ and it does not directly depend on the level of income. The second part‚ by‚ represents the part of consumption that does depend on income. It is the product of the fraction b‚ called the marginal propensity to consume (MPC)‚ and level of income in the economy‚ y. The MPC‚ which has a value of b in our formula‚ tells us how much consumption spending will increase for every dollar that income increases. If b equals 0.7‚ then for every $1 that income increases
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A 13 C 14 D 15 D 16 D 17 C 18 B 19 A 20 C 21 D 22 B 23 A 24 D 25 C 26 A 27 B 28 D 29 D 30 C 1. An increase in the quantity demanded could be caused by: a. an increase in the price of substitute goods b. a decrease in the price of complementary goods c. an increase in consumer income levels d. all of the above e. none of the above ANS: E 需求 2. The above figure illustrates the labor market for local fast food restaurants. What would be the effects
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(Krugman‚ 2011)“The good news‚ such as it is‚ is that President Obama has finally gone back to fighting against premature austerity — and he seems to be winning the political battle. And one of these years we might actually end up taking Keynes’s advice‚ which is every bit as valid now as it was 75 years ago AFTER ALL.” The U.S.‚ now the world’s largest debtor‚ embraces the great British economist’s 75-year-old argument (Skidelsky‚ 1996)Born in a total different world of ‘Capitalistic Individualism’
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