National Debt: It is Not Just a Number‚ It is Our Future Miranda Rosenbaum Macroeconomics Professor C. Simkonis April 29‚ 2008 Rosenbaum 1 As a nation‚ America has accumulated a tremendous amount of debt which will affect not only the lives of the current citizens‚ but generations thereafter. Currently‚ the United States public debt is approximately $9.5 trillion‚ in long form‚ that’s $9‚500‚000‚000‚000. This ridiculous amount
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ECO 212 Final Exam 1) According to economics‚ what causes us to have to make choices? A. unlimited resources. B. scarcity. C. unemployment. D. greed. 2) Why do consumers have to make tradeoffs in deciding what to consume? A. there are not enough of all goods produced. B. the prices of goods vary. C. not all goods give them the same amount of satisfaction. D. they are limited by a budget constraint. 3) What is the term in economics by
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1.0: INTRODUCTION (UTILITY) Coca-Cola is an international brand that are consumed everyday all around the world. Statistic has shown that each day‚ more than 8 million can of Coca-Cola is being sold worldwide. However today we are not going to discuss about the secret behind Coca-Cola success. On the other hand we are going to move from production to consumer where discussion will be about the utility of Coca-Cola. Every customer has their own satisfaction level‚ and it is different with each
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preferences are imagined to be high; production for the market does not take place and producers apparently do not follow profit-maximizing rules: ‘disguised’ or open unemployment is supposed to prevail throughout the rural sector and indeed the marginal productivity of labour is expected to be zero‚ and in some cases negative (Nurkse 1953). Income is equal to subsistence level (Leibenstein 1957:154) partly determined by physiological and partly by cultural levels (Lewis 1954). Further‚ capital has
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(|15-13|/((15+13)/2))/(|44-45|/((45+44)/2))=6.36 The international elasticity of demand is (|30-25|/((30+25)/2))/(|20-21|/((20+21)/2))=3.72 To estimate the profit-maximization price‚ the marginal cost needs to be equal to the marginal revenue. When (p-MC)/p=1/|e| ‚ the profits are maximized. But as the marginal cost was not mentioned in the case‚ the profit-maximization price cannot be calculated. However‚ between
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Giving up one thing to get something else OPPORTUNITY COST: Highest-valued alternative forgone CHOOSING AT THE MARGIN: Make your decision at the margin: compare the benefit of an activity with its cost * Marginal Benefit: Benefit that arises from an increase in activity * Marginal Cost: Cost of an increase in activity To decide you compare MB and MC * If MB > MCincrease in the action is rational * If MB< MC Action should not be taken NB: By evaluating MB and MC‚ choosing only
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that individuals get from the consumption of goods and services. Because a higher income allows one to consume more goods and services‚ we say that utility increases with income. But does greater income and consumption really translate into greater happiness? In this paper‚ I will be showing how greater income and consumption does not really translate into greater happiness and how marginal utility is diminishing as income gets higher. However‚ consumption effect tells us that more consumption
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Economics Chapter 2 Chapter 2 * Opportunity cost is a ratio. It is the decrease in the quantity produced of one good divided by the increase in the quantity produced of another good as we move along the production possibilities frontier. * The outward-bowed shape of the PPF reflects increasing opportunity cost. The PPF is bowed outward because resources are not all equally productive in all activities. * When goods and services are produced at the lowest possible cost and in the
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Chapter 2 1. A consumer prefers more to less of every good. Her income rises‚ and the price of one of the goods falls while other prices stay constant. These changes must have made her better of. TRUE 2. A decrease in income pivots the budget line around the bundle initially consumed. FALSE 3. If all prices are doubled and money income is left the same‚ the budget set does not change because relative prices don ’t change. FALSE 4. If all prices double and income triples‚ then the
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community or nation. Higher curves refer to greater satisfaction‚ lower curves to less satisfaction. It is always in the case that the community indifference curves are negatively sloped and convex from the origin because as a nation consumes more of one good‚ it must consume less of another so as to have the same level of satisfaction. The common slope of these two curves‚ which reflects
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