Economics Subject No. 3 Revision Kit [pic] Strathmore University [pic] Distance Learning Centre [pic] P.O. Box 59857‚ 00200‚ Nairobi‚ Kenya. Tel: +254 (020) 606155 Fax: +254 (020) 607498 Email: dlc@strathmore.edu Copyright ALL RIGHTS RESERVED. No part of this publication may be reproduced‚ stored in a retrieval system or transmitted in any form or by any means‚ electronic‚ mechanical‚ photocopying‚ recording or otherwise without the prior written permission
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3rd Edition‚ June 2005 Eric Doviak Principles of Microeconomics on the Lecture Notes Preface Microeconomics is the study of the behavior of individual households‚ firms and industries as well as the supply and demand relationships between producers and consumers. You might think of a household as a consumer‚ but households are also producers. For example‚ take a look at your kitchen: you take raw materials (meat‚ cheese‚ vegetables‚ eggs‚ salt and pepper) as well as capital
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UNIT II: UTILITY ANALYSISConcept of Utility * For effective decision-making‚ businessmen have to analyze and understand consumer behavior. Every rational human being endeavors to maximize his total utility by selecting the best from the given set of alternatives. * Utility refers to the satisfaction or pleasure that a consumer obtains by consuming the product or service; or want-satisfying ability of a good or service. * The concept of utility has been developed to explain the basic principles
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Analyse the impact of macroeconomic policy on economic growth in Australia since 2008. In your response you should refer to the economic information provided. "It was always easy to predict that fiscal policy would come back into fashion just as soon as the economy dipped into recession. The politician who could resist the temptation to use the budget to stimulate the economy during recession has yet to be born. But there were two other‚ more economic arguments favouring greater reliance on
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able to understand the following concepts Consumer Behaviour Theory- Ordinal Approach and Cardinal Approach Total Utility‚ Marginal Utility‚ Relationship between Total Utility and Marginal Utility Law of Diminishing Marginal Utility Utility Analysis and Consumer Equilibrium- One Good Case and Two Goods Case Consumer- Who is a Consumer? Anyone who purchases and consumes any goods and services for the satisfaction of his/her wants is called a consumer. A consumer spends the money available to
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Microeconomics Ch. 10: The Rational Consumer Fall 2010 Herriges (ISU) Chapter 10: The Rational Consumer Fall 2010 1 / 28 Outline 1 Utility: Getting Satisfaction 2 Budgets and Optimal Consumption 3 The Optimal Consumption Choice 4 Spending the Marginal Dollar 5 From Utility to the Demand Curve Herriges (ISU) Chapter 10: The Rational Consumer Fall 2010 2 / 28 The Rational Consumer One of the key assumptions underlying economics is the concept of the rational consumer Herriges (ISU) Chapter
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In 2009 the United States Government spent $950 billion in a fiscal stimulus package. Discuss the extent to which this stimulus will affect output‚ unemployment and inflation. (18 marks) Before we look into how the United States Government investment in a fiscal stimulus package effects output‚ employment and inflation‚ we must ensure we understand what is meant by a fiscal stimulus or policy. It is defined by economists as a package of economic measures put together by the government to stimulate
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UNIVERSITI SAINS MALAYSIA School of Management Semester II‚ Academic Session 2007/2008 MID-TERM EXAMINATION ACW 110/3 ¨C BUSINESS MATHEMATICS 15 February 2008 8.00AM ¨C 10.00AM Dewan Kuliah ¡°Z¡± Name:_______________________________ Matrix:_______________________________ INSTRUCTIONS This exam booklet contains five (5) questions (including one bonus question) Answer the FIRST FOUR questions; the bonus question is an option. Show all your works clearly. This booklet contains seven (7)
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is independent of the level of income. Q 20‚ Chp 10 3. If income rises from $1‚000 to $1‚400 and consumption rises from $800 to $1‚175‚ the marginal propensity to consume is __________ percent. a. 6.25 b. 85 c. 15 d. 93.75 Q 25‚ Chp 10 4. If income rises from $1‚000 to $1‚800 and consumption rises from $1‚100 to $1‚700‚ the marginal propensity to save (MPS) is a. 0.25. b. 0.75. c. 4.00. d. 2.00. Q 29‚ Chp 10 5. Here is a consumption function: C = C0 + MPC(Yd). If MPC is 0.80
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(4) g)[pic] (3) 4) a) Given the Marginal Propensity to save‚ [pic] find out the Saving and consumption functions‚ where S=0 when income is 81. (Income =y) (2) b) What is the present value of the income stream generating 3000 taka a year with a discount rate of 6% for 2 years. What is the value of a perpetuity with such characteristics? (2) c) Under a Monopoly‚ the demand function is [pic] and Marginal Cost function is [pic]. Find out the Consumer
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