1. Which of the following characterizes the U.S. trade balance since the mid-1970s? a. The U.S. trade balance has been in deficit. b. The value of imports has exceeded the value of exports. c. Trading partners have sold more to the United States than the United States has sold to them. d. All of the above. 2. If we add together all the gains from specialization and trade and then subtract all the losses‚ the net result would be: a. Zero; the gains and losses would cancel out.
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Classical Economics Classical economics is one of the main theories of economics‚ besides Keynesian economics‚ although classical economics is considered the first school of thought in economics‚ probably only due to timing. Although others have contributed ideas and theories to the classical school of thought‚ Adam Smith is the person behind the Classical economics school of thought. The Classical economics theory teaches and is based on the idea that the economy can stabilize and run effectively
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MAHUNDA UNIT CODE: HBC 2211 ACADEMIC YEAR: 2012/13 SEMESTER: 1 PARTICIPANT: * MROKI‚ Evans Determination of National Income by the Equality of Saving and Investment Method: Definition and Explanation: This approach is based on the Keynesian definitions of saving and investment. According to Keynes‚ the level of national income‚ in the short run‚ is determined at a point where planned or intended saving is equal to planned or intended investment. Saving as defined by Keynes is that part
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1. Explain economics? Economics is the study of how society allocates scarce resources and goods. Resources are the inputs that society uses to produce output‚ called goods. Resources include inputs such as labor‚ capital‚ and land. Goods include products such as food‚ clothing‚ and housing as well as services such as those provided by barbers‚ doctors‚ and police officers. These resources and goods maybe be considered scarce because of society’s tendency to demand more resources and goods than
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Model Economic Advisement With a nominal GDP estimated at more than 15 trillion it is clearly the United States economy is one of the largest in the world. A person must have lived in a cave underground for the past several years to not know that the current state of the nation’s economy is in desperate need of improvement. Many academic institutions have thought about how the economy arrived at its current state and how can it be restored. Some would advocate not using the same economic policies
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MICROECONOMICS CHAPTER 1 INTRODUCTION TO ECONOMICS ____________________________________________________________________________________________ 1.0 INTRODUCTION – THE SUBJECT MATTER OF ECONOMICS Economics comes from the verb ‘to economise’‚ and this means making ends meet. This is a study of how society makes decisions‚ regarding the allocation of scarce resources. Economics as a subject is divided into two parts; Economics‚ social science concerned with the production‚ distribution
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*MACAU GDP (PPP) – $47.19 billion (2011 est.)rank 98 GDP (OER) – $44.3 billion (2012 est.) GDP Real Growth Rate – 10% (2012 est.)rank 9 GDP Per Capita – $82‚400 (2011 est.) rank 4 Labor Force – 356‚700 (2012 est.)rank 159 Unemployment Rate – 1.9% (2012 est.)rank 11 Inflation Rate – 6.2% (2012 est.)rank 166 *KUWAIT GDP (PPP) – $153.4 billion (2012 est.)rank 62 GDP (OER) – $173.4 billion (2012 est.) GDP Real Growth Rate – 5.1% (2012 est.)rank 60 GDP Per Capita – $40‚500 (2012 est.)rank 27 Labor Force
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ECONOMICS CHAPTER 1 ECONOMIC WAY OF THINKING SCARE RESOURCES WEALTH OF THE NATIONS ECONOMICS: ADAM SMITH STAR CITY Scarcity Scarcity is the basic and central economic problem confronting every society. It is the heart of the study of economics and the reason behind its establishment. Authors have defined scarcity in various way some if which are complexly stated. One author defines scarcity as a commodity or service being in short supply‚ relatives to its demand (Kapur
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Introduction THE NATIONAL INCOME One of the basic questions facing economics centers on whether the total output of goods and services is growing from year to year or it remains static. This question is very important because countries are keenly interested in the performance of their economy. National income estimates enable countries to calculate the total production of goods and services in a year. The lecture also focuses on the measurement of national income and their problems‚ uses
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(Prof. Alfred Marshall) We can define Nat ional Income as t he collective achievement of a nat ion. In t his way‚ t he Nat ional Income is t he aggregat e of t he individual incomes. (Prof. Gardner Ackley) Nat ional Income is t he basic concept of economic‚ which refers t o t he market value of t he goods and services produced during a part icular year. (Prof. Richard Lipsy) CONCEPTS OF NATIONAL INCOme ----1.GROSS DOMESTIC PRODUct Total value of output (goods and services) produced by the factors
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