Our Economy Glossary: Appreciation: An upward movement of the Australia dollar (or any currency) against another currency. Balance of trade: The difference between the value of a nations imports and the value of its exports. Business cycle: The cyclical fluctuations in the level of economic activity that an economy goes through over time. Comparison rate: Loan interest rates calculated after adding fees and charges to the lender’s advertised rate. Consumer Price Index: (CPI)
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Chapter 4 Study Guide The Economic Environment 1) The recent global economic financial crises have led to proposals of more or less regulations? 2) Income‚ purchasing power‚ market size‚ and market type are all key elements of the political or the economic environment? 3) From the 1980s to the most recent global economic crisis‚ did countries turn away from the principles and practices of free markets or adopt the principles and practices of free markets? 4) There is no universal scheme to
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Economics Definition: Economics is a social Science dealing with the Economic Problem. • Social: Science that deals with human beings. • Dealing: Means facing and not solving. • Economic Problem: The problem of Scarcity (The inability to satisfy all the needs & wants) Economics is giving us the rules of rationality; the ability of taking rational decisions. Economics studies the behavior of the government at the macro level. Micro Economics: It studies the individual choices regarding
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variable The variable is the important aspects of the research. In research the concept are measure from variable. Variable are anythings that can take on differing or varing values. it mean that the value of variable vary from person to person‚ time to time or place to place but the meaning of variable are same to all. Thus variable are the charactestics of person‚ groups‚ objects‚ ideas‚ feeling or other thing that researcher want to measure. Variables are thus anything that can take on differing
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"To make money is our only objective” Advertisers always find some ways to control the market. Producers try not making art films instead of commercial films because "To make money is our only objective.” Michael Eisner‚ Disney CEO 1984-2005 . Though advertisements could be deceiving and ineffective in modern movies‚ sometimes they enhance and add to what is to be delivered. It is very easy to think of an example of movies that put in sponsors’ products excessively. They do that to develop a
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1/3/14 What is Positive Economics | What is Normative Economics Positive economics is economics that does not apply objectives to what an economy should be doing or what it “ought to be” doing. It ill describe equilibrium levels at certain prices and quantities but give no opinion on whether that is an appropriate price of quantity‚ It will examine the quantity theory of money and the interest rate while never stating whether an interest rate is good or bad. The “free market” is a system
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change in her income that allows her to purchase her new optimal bundle at the original prices. 4. If the demand curve is a linear function of price‚ then the price elasticity of demand is the same at all prices. 5. If consumer 1 has the demand function x1 = 1‚000 – 2p and consumer 2 has the demand function x2 = 500 – p‚ then the aggregate demand function for an economy with just these two consumers would be x = 1‚500 – 3p for p < 500. 6. The equivalent variation in income from a tax is the amount
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change in wage (w) WHEN WE LOOK AT THE SUPPLY OF LABOUR = LS = g(w‚ # of earners‚ level of education) Note: the increasing level of education increases the hour of work (LS) Sidenote: explained about wealth – which is the accumulation of income which is not consumed vs income which is meant to consume. Labour Supply Equilibrium Ls=Ld Labour Demand Tool and Die makers for example are at a shortage‚ which means there is an excess demand‚ where the supply curve shifts to the left. How do we
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this acquired freedom is that we are able to have an economic system which is well known for its competition and consumer independence; the market economy. The government has absolutely no authority to interfere with the business activities of people. They also cannot control the choices of the consumers nor could they decide what the producers would manufacture; therefore‚ they also cannot predict the outcome of these decisions. When economic problems arise‚ the government will not be held responsible
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Investment Function Savings and Investment Relationship Here we will take investment in terms of a schedule giving various amounts of investment associated with various levels of income. The investment schedule is the function of entrepreneurial behavior. It tells us how the investors or producers respond to a change in income or in the interest rate over a given time propensity to invest together with propensity to consume determine the level of income. The investment schedule may be compared
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