likely to increase the income of the consumer. Furthermore‚ education raises one’s productivity‚ which in turn benefits the society as a whole by increasing national income. Due to positive externalities‚ the social marginal benefit of merit goods is greater than its private marginal benefit. Consumers in a free market only consider private benefits when purchasing and will therefore underconsume merit goods. This scenario can be shown in the diagram 1 below. As shown in diagram 1‚ the socially
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2012 Alex Savitt Economics 256W 4/23/2012 2012 Alex Savitt Economics 256W 4/23/2012 Demand-Side vs. Supply-Side Economics Demand-Side vs. Supply-Side Economics Ever since the 1980s when President Ronald Reagan implemented a form of economic fiscal policy known as supply-side economics‚ there has been a continuing debate over whether a supply-side fiscal economic agenda or a more demand-side‚ Keynesian fiscal economic policy is more effective in promoting short and long-term real GDP
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analysis of utility maximization and decision making under uncertainty. The concepts in this chapter are an important foundation for subsequent material in the book. CHAPTER OUTLINE ECONOMIC BEHAVIOR: AN OVERVIEW Economic Choice Marginal Analysis Managerial Application: Marginal Analysis of Customer Profitability Opportunity Costs Managerial Application: Opportunity Costs and V-8 Creativity of Individuals Managerial Application: Creative Gaming of the System GRAPHIC TOOLS Individual Objectives Indifference
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Question Write an analysis of the developments of the taxation system in Zimbabwe from pre to post colonial Zimbabwe (25) The tax system currently enforced in Zimbabwe under the authority of the Income tax Act Chap 23.06 with Acts like the Capital Gains Act Chap 23.01‚ Finance Act Chap 23.04 and the Excise duties Act as complimentary. The system evolved from traditional ideologies perpetuated from
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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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In the case of the film‚ the ignorance is in regards to nutrition. This is demonstrated by interviews- asking people on the street simple nutrition facts such as the definition of a calorie‚ or how often they consume fast food (a question which provokes an interesting response and possibly some unfair racial stereotyping on Spurlock’s part‚ in regards to an interview with two African American teenagers). The American people are shown as having an inadequate knowledge
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irresponsible banks”‚ and thinks it should raise rates modestly. This challenges textbook monetary policy. Typically‚ lower rates stimulate growth in several ways. They reduce the cost of capital‚ spurring investment and encouraging households to consume today rather than tomorrow. They also boost stock prices‚ helping spending through the wealth effect‚ and reduce the exchange rate‚ helping exports. Finally‚ lower rates redistribute income from creditors to debtors‚ who will presumably spend the
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INTRODUCTION Uncountable number of trades takes place all over the world every minute no matter in developed countries or the developing ones. The theoretical foundation of international trade is from classic economic theory that dates from the nineteenth century - the Ricardian Model. The model shows that a country’s production and trade pattern is determined by comparative advantage‚ which is based on the differences in the productivity of labour. In reality‚ there are more factors that require
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ECO/365– Principles of Microeconomics– Final Exam Study Guide 2012 Remember to check out ACCNerd.com for the latest updates! 1) If average movie ticket prices rise by about 5 percent and attendance falls by about 2 percent‚ other things being equal‚ the elasticity of demand for movie tickets is about: A. 0.0 B. 0.4 C. 0.6 D. 2.5 2) A basic difference between microeconomics and macroeconomics is that microeconomics A. focuses on the choices of individual consumers‚ while macroeconomics
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ECO 2013: Principles of Macroeconomics Midterm 2 Practice Questions 1. GDP (Gross Domestic Product) is … A. the sum of consumption‚ investment‚ government purchases‚ and net exports. B. the market value of final goods and services produced in an economy during a year. C. the market value of final goods and services produced an Economy’s citizens and firms during a year. D. A and B E. All of the above 2. The largest component of GDP is… A. consumer spending. B. private
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