Assume a consumption function that takes on the following algebraic form: C = $100 + .8Y. Assume that Y = $1000 what is the level of consumption at this income level. C = $100 + .8($1000) = $100 + $800 = $900. 1. Using the above figure calculate the marginal propensity to consume between the aggregate income levels of $80 and $100. Also explain why this consumption function is linear. The marginal propensity to consume is equal to $15/$20 = .75. The consumption
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Economics is the study of social behavior guiding in the allocation of scarce resources to meet the unlimited needs and desires of the individual members of a given society. Economics seeks to understand how those individuals interact within the social structure to address key questions about the production and exchange of goods and services. First‚ how are individual needs and desires communicated such that the correct mix of goods and services become available? Second‚ how does a society provide
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ECONOMICS CHAPTER 1- INTRODUCTION TO ECONOMICS ● Assumed 3 decision makers- consumers (households) – that sell land‚ labour‚ capital & entrepreneurship and firms- that pay rent‚ wages‚ interest and profits (rewards for above factors of production ) firms then use the factors to produce G/S in return for payment from consumer. Govt imposes taxes on individuals and (income tax) and firms (corporate tax) to provide infrastructure and other services to community ● Econon’s 2 basic assumptions
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the foundations of society and government during these eras. The reemergence of Greek Civilization between 100-750 B.C.E. introduced the writings of Homer. Influenced by Near Eastern mythology and fables that embedded teachings used to educate the masses on social behaviors and morality‚ Homer expressed the Greek social value of arête (excellence) through his oral lyricism (a vital characteristic that bonded Greek cultural traditions). His epic tales of the Iliad and the Odyssey encompass the cultural
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I agree‚ the Ancient Greek city-states were often at odds with each other. People from other city-states were not as highly regarded as they regarded themselves and they mostly went to war with each other for control over the peninsula. When the Persians threatened all of Greece‚ they had no choice but to unite. This also showed them an enemy that was far more different from them than people from other Greek-city states. Continuous conflict and competition between city-states broke
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Hong Kong’s Economic and Political Environment Hong Kong’s retrocession in the summer of 1997 was an event long prepared for‚ and built up to‚ in the minds of the territory’s citizens and residents. A significant number of the educated applied for overseas passports and left for more politically and economically stable environments in which to live and work; the "Brain Drain" was a significant problem for Hong Kong from 1984. Return to Chinese rule brought a promise from China that Hong Kong
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Q-4) what does “equilibrium price and quantity sold” mean? Are markets always in equilibrium? What happens when they are not? On the supply and demand graph‚ there is one point at which the supply and demand curves intersect. This point is called the market’s equilibrium. The price at this intersection is called the equilibrium price‚ and the quantity is called the equilibrium quantity. The equilibrium is a situation in which various forces are in balance‚ so in market’s equilibrium‚ the equilibrium
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1. What do you understand by Managerial Economics? Give Definition and meaning of Managerial Economics. Economics is the branch of Knowledge that deals with how the scarce resources can be used to produce valuable goods and services and distribute them efficiently among different classes of people in the society. What is Managerial Economics? Douglas - “Managerial economics is the application of economic principles and methodologies to the decision-making process within the firm or organization
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diversified economy‚ excellent infrastructure‚ and a legal and social structure of a developing nation. Proximity to Europe‚ integration with European markets‚ the external anchor of the European Union accession‚ and a lengthy track record of solid economic management and structural reform are the drivers of Turkey’s long-run prospects (World Bank‚ 2010). Turkey’s high degree of integration with the world economy‚ through both trade and financial channels‚ resulted in the country becoming vulnerable
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2012 Political Apathy Throughout the course of our history‚ Americans have followed a strong belief that‚ through hard work and initiative‚ hope can be brought to the political and economic spectrum. The American Dream has been a symbol meant to inspire and encourage citizens to seek their passion‚ enabling them to work with diligence to increase economic stability. However‚ many people in America today are losing faith in with this dream. It has become very evident that the political apathy
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