Economics Exam 1 Study Guide Vocabulary Opportunity Cost – the value of the opportunities lost Total Cost – the “all or nothing” cost of engaging in any activity Marginal Cost – describes how total costs change as I change the amount (or intensity) of the activity Benefits – The advantageous or desirable outcome of an action Inflation – an increase in the general level of prices Absolute Advantage – the ability to produce the same good using fewer inputs than any other producer. Production
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What is the importance of consumption expenditure in determining changes in the level of national income? In every macroeconomic question‚ there always exists its direction towards satisfying the macroeconomic objectives such as achieving long term economic growth and low unemployment levels (Hall and Lieberman‚ 2009). As consumption expenditure is the total spending by consumers on domestic goods and services‚ and national income is the value of all the goods and services provided in an economy
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Disclaimer- The ASB Economics Faculty accepts no responsibility for the content of these pages. These notes were created by a past student for their personal revision purposes and as such may contain errors‚ typos‚ outdated statistics etc. Students are advised to read all material critically and for best results‚ to make their own notes based on official ECON lecture slides and notes and the BOF textbook. ECON1102 Macroeconomics Summary otes What is Macroeconomics? Macroeconomics is concerned
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universal parks in Barbados has the potential to pay significant dividends in the years to come. Furthermore an investment of $100 million into tourism could cause a multiplier effect strengthening the overall economy further as long as the marginal propensity to consume is great than it is to save. Barbados GDP growth 2000 - 2009 Source: http://www.indexmundi.com/g/g.aspx?c=bb&v=65 Barbados Rate of Inflation 2000 - 2009 Uncertainty about Barbados’s future inflation rate may discourage investment
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1.0 INTRODUCTION In general definition‚ budgeting is the concerned with the transaction of financial resources into human purpose. Budget is refer to the spring financial statement‚ which focus on tax. There are a few principles of good budgeting that is comprehensiveness‚predictability‚ transparency and periodicity. Budgeting is effective in facility process when it forces awareness of overall fiscal constraints‚ enables the priontization of spending in the linewith policy objective. The budget
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THE INDIAN HIGH SCHOOL DUBAI YEAR 2013-14 Page 1 COMPILED BY HOD ECONOMICS MRS. CHANDRA R INDEX S NO 1 TOPIC PAGE NO 3 - 20 INTRODUCTION TO MACRO ECONOMICS 21 – 35 2 AGGREGATE DEMAND AND AGGREGATE SUPPLY 3 36 - 43 MONEY AND BANKING 4 44 - 49 GOVERNMENT BUDGET 5 49 - 58 BALANCE OF PAYMENT AND FOREIGN EXCHANGE 6 59- 66 BOARD PAPER 2013 DELHI 7 67 - 75 MARKING SCHEME Page 2 COMPILED BY HOD ECONOMICS MRS. CHANDRA R HANDBOOK
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population because of the decrease in consumption and economic growth. The paradox is that total savings may fall‚ even when individual savings attempt to rise and increases in savings may be harmful to an economy. While individual thrift is generally averred to be good for the economy‚ the paradox of thrift holds that collective thrift may be bad for the economy (Wikipedia‚ 2011). The paradox of thrift is
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Macroeconomic Definitions Absolute advantage | Absolute advantage occurs when a country or region can create more of a product with the same factor inputs | Accelerator effect | Planned capital investment by private sector businesses is linked to the growth of demand for goods and services. When consumer or export demand is rising strongly‚ businesses may increase investment to expand their production capacity and meet the extra demand. This process is known as the accelerator effect. But the
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government interference. 3. These models operate in a closed economy which has no foreign trade. 4. There are no lags in adjustments between investment and creation of productive capacity. 5. The average propensity to save is equal to the marginal propensity to save. 6. The marginal propensity to save remains constant. 7. The capital coefficient‚ i.e.‚ the ratio of capital stock to income is assumed to be fixed. 8. There is no depreciation of capital goods which are assumed to possess infinite
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possibility frontier shifts inwards. C) not enough technological progress to enable more output to be produced from existing levels of resources. D) insufficient demand for goods and services. 2) What does marginal analysis involve? A) Comparing marginal costs to marginal benefits. B) Comparing total costs to total benefits. C) Comparing average costs to average benefits. D) Subtracting total costs from total benefits. 3) The production possibility frontier shows:
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