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
Free Gross domestic product Economics
CONSUMER DEMAND AN ECONOMETRIC IN HONG KONG ANALYSIS 1 E. R. LIM * Introduction The objectives of consumer demand analysis are first‚ to isolate a few major variables from the many and complex factors influencing consumer behaviour‚ and second‚ to verify empirically that this relatively small number of parameters gives a reasonable explanation of a wide range of observations on consumer behaviour. The quantitative knowledge thus obtained is necessary for the study of economic development
Premium Consumer theory Household income in the United States Regression analysis
Dylan’s utility. b) Raise Dylan’s utility. c) Leave Dylan’s utility unchanged. d) Not lower Dylan’s utility. MC3. Suppose Ellen spends all her income on books and food. Following an increase in the price of books (with income fixed)‚ Ellen consumes fewer books and less food. From this‚ we can infer that: a) Books are normal goods‚ to Ellen. b) Books are inferior goods‚ to Ellen. c) Food is a normal good‚ to Ellen. Because the substitution effect saya it would rise d) Food is an inferior
Premium Consumer theory Supply and demand Economics
2008-AL-ECON-II Past Questions on Macroeconomics Prepared by A.Chow Unit 1 – National Income Accounting 1. Which of the following are included in the national income of Hong Kong? (1) government spending on public assistance. (2) commission from the sale of second-hand cars. (3) salaries of the employee of the Jockey Club. (4) receipts form the sale of stocks and shares. A. (1) and (2) only B. (1) and (4) only C. (2) and (3) only D. (3) and (4) only (90 -01) Refer to the following national income
Premium Gross domestic product Tax Monetary policy
c) demand. b) total utility. d) marginal utility. 3- Marginal utility is the change in total utility that results from a) an increase in the consumer’s income. b) a one-unit change in the quantity of a good consumed. c) a decrease in the price of the good. d) an increase in the price of the good. 4- If the total utility of 2 bags of chips is 25‚ the total utility of 3 bags is 33‚ and the total utility of 4 bags is 40 units‚ then the marginal utility of the 3rd and 4th bags are a)
Premium Utility Consumer theory Preference
measurement of utility is utils Marginal utility • is defined as the additional utility or satisfaction gained from obtaining and consuming an extra unit of a particular good or service. • Marginal utility is also measured in utils. • Marginal utility is measured by the following formula: MUX = ΔTU ΔX • X represents the quantity consumed of a particular product • An example of total and marginal utility Qty of Product X Consumed Total Utility (utils) Marginal Utility (Utils) 0 0 -
Premium Utility Consumer theory Economics
Question 1 Marks: 1 Marginal utility is best computed as the: Choose one answer. | D. change in total utility from an additional unit consumed. | | Question 2 If the price of chocolate-covered peanuts decreases from $1.05 to $0.95 and the quantity demanded increases from 180 bags to 220 bags‚ this indicates that‚ if other things are unchanged‚ the absolute value of the price elasticity of demand using the midpoint method is: Choose one answer. | A. 2. | | Question 3 If an
Premium Supply and demand Consumer theory
price c. contest d. personal characteristics e. command 4. Marginal benefit is the benefit that a person receives from consuming a. a good or service until the person has grown tired of it. b. only goods and services that are free. c. one more unit of a good or service. d. all of the possible units of a good or service that can be consumed. e. one more unit of a good and is equal to the cost of producing the unit of the good. 5. The marginal benefit of a product is a measure of a good’s a. opportunity
Premium Supply and demand Marginal cost Economics
Introduction The way we conceptualize the world and the assumptions we make influence both the explanations we provide for certain events and the policies we develop in relation to them. Therefore‚ tracing the history of ideas can help us understand many of our current actions‚ institutions‚ theories. This holds true especially in the field of economics where one of the dominant ideas throughout the years has been the concept of laissez-faire – the idea that markets should be unfettered by the
Premium Keynesian economics
Economics Unit 2 Paper 2 June 2014 Cape Exam N.L. 1) a) Intermediate goods- goods and services purchased for resale or further processing or manufacturing. b) I) GDP only includes the market value of final goods‚ not intermediate goods because the value of final goods already includes the value of all intermediate goods used in producing them. (Including the value of intermediate goods would amount to multiple counting‚ and that would distort the value of GDP) II)
Premium Investment Gross domestic product Goods