the cardinal approach 5.6 Consumer’s surplus 5.7 The ordinal utility approach to consumer behaviour: the indifference curve approach 5.8 Consumer’s budget constraint 5.9 Consumer’s equilibrium in the ordinal utility approach 5.10 Special cases 5.11 Price-consumption curve 5.12 Income-consumption curve 5.13 Price‚ substitution‚ and income effects 5.14 Derivation of the demand curve for a good 5.15 Inferior goods and Giffen goods 5.16 Let us sum up 5.17 Some key words 5.18 Some useful
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Definition of Economics: The Economist’s Dictionary of Economics defines economics as "The study of the production‚ distribution and consumption of wealth in human society." The 1828 edition of Webster’s dictionary contains that could still apply today: "Political economy‚ the administration of the revenues of a nation; or the management and regulation of its resources and productive property and labor. Political economy comprehends all the measures by which the property and labor of
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(human resource) being demanded and supplied at a particular price (wage).Labour supply is frequently represented graphically by a labour supply curve‚ which shows hypothetical wage rates plotted vertically and the amount of labour that an individual or group of individuals is willing to supply at that wage rate plotted horizontally‚ The labour supply curve for an industry or occupation will be upward sloping indicating a positive relation between wage and labour supply‚ increase in wage rate leads
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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 Curves Constraints Individual Choice Changes in Choice MOTIVATING HONESTY AT MERRILL LYNCH MANAGERIAL IMPLICATIONS Managerial Application: Medicare Creates Perverse Incentives for Doctors ALTERNATIVE MODELS OF BEHAVIOR Only-Money-Matters Model Happy-Is-Productive
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graphically illustrate the impact of these factors on the North-American equilibrium price and quantity of rare-earth elements. You must clearly identify the initial equilibrium‚ the new equilibrium‚ and properly label both axes and all lines in your graph. Question 3 (10 marks) The Vancouver 2010 torchbearer red mittens sold by the Hudson’s Bay Company for $10 per pair are the must-have mementos of this year’s
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Price Theory and Applications‚ Seventh Edition Steven E. Landsburg VP/Editorial Director: Jack W. Calhoun Editor-in-Chief: Alex von Rosenberg Senior Acquisitions Editor: Steve Scoble Developmental Editor: Joanne Vickers Ohlinger Publishing Services Marketing Manager: Brian Joyner Marketing Communications Manager: Sarah Greber Content Project Manager: Amy Hackett Manager‚ Editorial Media: John Barans Technology Project Manager: Deepak Kumar Senior Manufacturing Coordinator: Sandee Milewski Production
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1. PRINCIPES OF ECONOMICS-MANKIEW CHAPTER 1- QUESTION FOR REVIEW (18) No 3. What is inflation and what causes it? = Inflation is an increase in the overall level of prices in the economy. Inflation happen because culprit is growth in the quantity o money when a government creates larges quantities of the nation’s money‚ the value of the money. No 5. Explain the two main causes of market failure and give an example of each! = Externality‚ is the impact of one person’s action on the well being
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the aid of community Indifference curve and the production possibility frontier how a country an gain from international trade. 둘째. What other possible gains from trade are there other than the “gain for exchange” and gains from specialization.”? 첫째 The gain from international trade between countries can simply be clarified by the aid of Community Indifference Curves and the production possibility frontier as follows. The production possibility frontier is the curve that shows the alternative
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economies of scale. d. diseconomies of scale. ____ 6. The complete description of a competitive firm’s supply curve is as follows: The competitive firm’s short-run supply curve is that portion of the a. average total cost curve that lies above marginal cost. b. average variable cost curve that lies above marginal cost. c. marginal cost curve that lies above average total cost. d. marginal cost curve that lies above average variable cost. 2 Name: ________________________
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substitute (Marginal Rate of Substitution) Slope of indifference curve= the amount of a product that must be substitute for another if utility is to remain unchanged. The ratio is the marginal rate of substitution. The MRS is the slope of the indifference curve at a certain point. I spend my money on the product that gave the most marginal utility. Ex: How much X do I have to give to get an extra unit of Y ? Example of indifference curves= If my MRS does not depend on
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