...Chapter 1 notes: * Economics: a social science that examines how people choose among the alternatives available to them. * Scarcity: the condition of having to choose among alternatives * Scarce good: a good for which the choice of one alternative requires that another be given up * Free good: a good for which the choice of one use does not require that another be given up * Important questions: * What should be produced * How should goods and services be produced * For whom should goods and serviced be produced * Opportunity cost: the value of the best alternative forgone in making any choice * Economists study choices that scarcity requires us to make * Economic approach to choice: * Economists give special emphasis to role of opportunity costs * Assume that individuals makes choices that maximize the value of some objective and they define their objectives based on self-interests * Individuals maximize by choosing to do little more or little less of something; argue that individuals pay attention to the consequences of small changes in the levels of activities they purchase * Economic way of thinking pushes us to the value of alternatives in each choice we make * Margin: current level of activity * Choice at the margin: decision to do a little more or little less of something * Microeconomics: branch of economics that focuses on the choices made by individual decision-making units in the economy and the...
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...Fall 2012 CHAPTER 1: THE CHALLENGE OF ECONOMICS 1 CHAPTER 1: THE CHALLENGE OF ECONOMICS Definitions and Questions All economic questions and problems arise because human wants exceed the resources available to satisfy them. Scarcity: - The condition that arises because the available resources are insufficient to satisfy wants. o Our resources are limited but our wants are unlimited. - Scarcity: Lack of enough resources to satisfy all desired uses of those resources The Central Problem of Scarcity Our materialistic wants and desires continue to grow. - Newest camera phone - Larger television - Bigger house - Exotic vacation Why can’t we have everything we want? - Our wants exceed our resources. Economics and Opportunity Cost Economics – the study of how best to allocate scare resources among competing users. Opportunity cost – The value or price of the most desired goods and services that are foregone in order to obtain something else. - The next best alternative that you give up. Factors of Production Resource inputs used to produce goods and services. The four resources: - Labor, land, capital and entrepreneurship Resources are factors of production. Economic resources – all natural human and manufactured resources that can be used in the production of goods and services. Land – arable land, forests, minerals, energy (oil deposits and coal), water, air, wild plants, animals, birds and fish. Labor – all the physical and intellectual talents that can...
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...Unit III Homework Chapter 5 Answer 3. (Aggregate Demand and Supply) -When the price of a certain product increases, the quantity demanded declines due to the fact that, the product becomes more costly compared to substitutes ( McEachern, 2015 p. 78). The market demand curve is affected by changes in consumer tastes and typically increases shifts to the right with increases in income, increases in the price of substitute goods, or decreases in the price of complementary goods. -On the other hand when the U.S. economy's price level increases, then the quantity of U.S real GDP demanded declines in part, due to the fact that, the U.S. products become more costly compared to foreign products ( McEachern, 2015 p. 78). The aggregate demand curve shows the quantity of goods, and services that households want to buy at each price level. Any rises, non price changes, or an overall increase in consumption will cause the aggregate demand curve to shift right. -A shift in the supply curve occurs when variables other than the price of a particular good change. These factors are the other determinants of supply. For example new and improved technology, causes the market supply curve to shift to the right. -The aggregate supply curve represents the production in the economy as a whole, rather than one good or service. More labor, natural resources, capital, and technological knowledge shifts aggregate supply right. Unit III Homework Chapter 5 Answer 6. (Supply-Side...
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...of business Administration Honors (Majors) by Lahore School of Economics. Research supervisor (Zehra Raza) Lahore School of Economics TABLE OF CONTENT ACKNOWLEDGEMENT................................................................................ 5 ABSTRACT .................................................................................................. 6 CHAPTER 1:...
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...Chapter 15 Question 11 11. The table below lists gross domestic product (GDP), consumption (C), gross private domestic investment (I), government spending (G), and net exports (X - M). Each computed as a percent of GDP for the 5 years presented with the following equation: C (%) = (C/GDP) x 100% I (%) = (I/GDP) x 100% G (%) = (G/GDP) x 100% X –M (%) = ((X-M)/GDP) x 100% Year GDP C I G X - M C (%) I (%) G (%) X – M (%) 1965 719.1 443.8 118.2 151.5 5.6 61.72 16.44 21.07 0.78 change (1.42%) (-2.39%) (0.76%) (0.19) 1975 1638.3 1034.4 230.2 357.7 16 63.14 14.05 21.83 0.97 change (1.32%) (3.39%) (1.00%) (3.7%) 1985 4220.3 2720.3 736.2 879 -115.2 64.46 17.44 20.83 -2.73 ...
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...chapter 1 2 >> Fiscal Policy A BRIDGE TO PROSPERITY? I n 1998 the Japanese government though on a smaller scale. Indeed, many completed the longest suspension countries attempt to manage aggregate de- bridge in the world. The 6,500-foot mand by using discretionary fiscal policy. span linking Awaji Island to the city of Governments also adjust taxes in an at- Kobe cost $7.3 billion to build. Yet as skep- tempt to manage aggregate demand. They tics had predicted, it currently carries very may reduce taxes to try to stimulate the little traffic—about 4,000 cars a day. By economy or raise taxes when they believe comparison, America’s longest suspension that aggregate demand is too high. bridge, the Verrazano Bridge that links New In this chapter, we will learn how discre- York City’s Staten Island to the borough of tionary fiscal policy fits into the model of Brooklyn, carries more than 300,000 cars short-run fluctuations we developed in each day. Chapter 10. We’ll see how deliberate In Japan, stories like this are common. During the 1990s the Japanese government What you will learn in this chapter: changes in government spending and tax policy affect real GDP. We’ll also see how ® What fiscal policy is and why it is an important tool in managing economic fluctuations ® Which policies constitute an expansionary fiscal policy and which constitute a contractionary fiscal policy ...
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...70+ DVD’s FOR SALE & EXCHANGE www.traders-software.com www.forex-warez.com www.trading-software-collection.com www.tradestation-download-free.com Contacts andreybbrv@gmail.com andreybbrv@yandex.ru Skype: andreybbrv SCHAUM’S Easy OUTLINES PRINCIPLES OF ECONOMICS Other Books in Schaum’s Easy Outlines Series Include: Schaum’s Easy Outline: Calculus Schaum’s Easy Outline: College Algebra Schaum’s Easy Outline: College Mathematics Schaum’s Easy Outline: Discrete Mathematics Schaum’s Easy Outline: Differential Equations Schaum’s Easy Outline: Elementary Algebra Schaum’s Easy Outline: Geometry Schaum’s Easy Outline: Linear Algebra Schaum’s Easy Outline: Mathematical Handbook of Formulas and Tables Schaum’s Easy Outline: Precalculus Schaum’s Easy Outline: Probability and Statistics Schaum’s Easy Outline: Statistics Schaum’s Easy Outline: Trigonometry Schaum’s Easy Outline: Business Statistics Schaum’s Easy Outline: Principles of Accounting Schaum’s Easy Outline: Applied Physics Schaum’s Easy Outline: Biology Schaum’s Easy Outline: Biochemistry Schaum’s Easy Outline: Molecular and Cell Biology Schaum’s Easy Outline: College Chemistry Schaum’s Easy Outline: Genetics Schaum’s Easy Outline: Human Anatomy and Physiology Schaum’s Easy Outline: Organic Chemistry Schaum’s Easy Outline: Physics Schaum’s Easy Outline: Programming with C++ Schaum’s Easy Outline: Programming with Java Schaum’s Easy Outline: Basic Electricity Schaum’s Easy Outline: Electromagnetics Schaum’s Easy Outline:...
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...9/19/2012 A Tour of the World A Tour of The World A Tour of The World Chapter 1: A Tour of the World CHAPTER 1 Prepared by: Fernando Quijano and Yvonn Quijano Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall • Macroeconomics, 5/e • Olivier Blanchard 1-1 The United States Table 1-1 1996–2006 (average) 2006 2007 2008 3.1% 3.4% 3.3% 2.1% 2.5% Output growth rate Unemployment rate 6.2 5.0 4.6 4.6 4.8 Inflation rate The unemployment rate 4.0 2.0 2.9 2.6 2.2 Output growth rate: annual rate of growth of output (GDP). Unemployment rate: average over the year. Inflation rate: annual rate of change of the price level (GDP deflator). 3 of 18 Chapter 1: A Tour of the World The inflation rate The period 1996-2006 was one of the best decades in recent memory: The average rate of growth was 3.4% per year. The average unemployment rate was 5.0%. The average inflation rate was 2.0%. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall • Macroeconomics, 5/e • Olivier Blanchard 1-1 The United States 4 of 18 1-1 The United States Has the United States Entered a New Economy? Should We Worry About the U.S. Trade Deficit? Figure 1 - 2 Figure 1 - 3 Rate of Growth of Output per Hour in the United States Since 1960. The U.S.Trade Deficit Since 1990 The trade deficit increased from about 1% of output in 1990 to about 6% of output...
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...Questions for Test 2 ECO 320 Economics of Development Chapter 1 1.Developing countries share some features (low levels of income, etc.), but they are quite different in many respects. Explain what we mean by “institutions” and how is it that developing countries different in institutional development. How would the differences in the development of institutions make it more difficult to formulate policies for development and theories of development? 2.Is there a fixed set of prerequisites for development? Explain. Chapter 2 3.Comment on the following statement: The level and growth rate of real GDP per capita can be a misleading indicator of development. At the same time, countries that experience sustained increases in real GDP per capita over time will tend to be more developed. 4.Why is an understanding of what “development” means crucial to policy formulation in developing nations? Why do you think a country may have difficulties in agreeing on a rough definition of development? 5.Why do we use “purchasing power parity” measures when comparing incomes across countries? 6.Suppose that you had to explain this graph to someone who is not a “visual learner” – he just doesn’t get pictures. You have to explain every feature of the graph using words. 7.What are the components of the Human Development Index? What are some strengths and weaknesses of the HDI as a comparative measure of human welfare? 8.Discuss the Millennium Development Goals...
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...Unit 1 Assignment 1 Problems Chapter 1: Problem 5, A-D, Page 21 Chapter 3: Problem 7, A-D, Page 68 Angela Besler Capella University MBA6008 January 12, 2014 Unit 1 Assignment 1 Problems Chapter 1: Problem 5, A-D, Page 21 A. Table and Graph: Types of Production | | Automobiles | Forklifts | | 0 | 30 | A | Production Alternatives | 2 | 27 | B | | 4 | 21 | C | | 6 | 12 | D | | 8 | 0 | E | | A production possibility “curve displays the different combinations of goods and services that society can produce in a fully, employed economy, assuming a fixed availability of supplies of resources and fixed technology” (McConnell and Et. Al., 2012). The specific assumptions that a production possibilities curve has is that of: * Full employment: employing all available resources * Fixed resources: quantity/quality of production factors fixed * Fixed technology: methods used to produce output(state of technology) constant * Two goods: economy produce only two goods; both consumer and capital goods (McConnell and Et. Al., 2012). “Each point on the curve represents some maximum output of two products” (McConnell and Et. Al., 2012). “Gross Domestic Production (GDP is the total market value of all final goods/services produced annually within boundaries of US, whether by US or foreign supplied resources” (McConnell and Et. Al., 2012). “Net Domestic Production (NDP) is the GDP less part of the year’s output that needed to replace...
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...THE EFFECTS OF BANKING SECTOR AND STOCK MARKET DEVELOPMENT ON THE MALAYSIAN ECONOMIC GROWTH: AN EMPIRICAL INVESTIGATION BY HAFSAH AHMAD A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN ECONOMICS KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA MAY 2005 1 ABSTRACT This study investigates the long-run relationship between financial development (banking sector and stock market development) and economic growth in Malaysia. Six variables based on Malaysian quarterly data from 1978:1 to 2002:4 are employed, namely real GDP per capita, investment rate and ratios of credit, deposit, market capitalization, and value of shares traded to GDP. Two dynamic frameworks are adopted - Vector Auto regression (VAR) with error correction formulation for causality analyses and dynamic OLS (DOLS) procedure for estimation of growthfinance long-run relation. Causality analyses show that there is bi-directional causality between financial development (banking sector and stock market development) and economic growth. Analyses on growth-finance long-run relations indicate that banking sector development and stock market development individually have an independent positive effect on long-run economic growth. They enhance economic growth through both channels – the volume and efficiency of investment, with the latter being the main source of their independent effect. The study also shows that...
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...CONGRESS OF THE UNITED STATES CONGRESSIONAL BUDGET OFFICE CBO The Budget and Economic Outlook: Fiscal Years 2013 to 2023 Percentage of GDP 120 100 80 60 40 20 0 1940 1945 Actual Projected 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 Federal Debt Held by the Public Trillions of 2005 dollars 20 18 16 14 12 10 0 2000 2004 2008 Potential GDP GDP Actual Projected Percent 12 10 8 6 4 2 0 2000 Actual Projected 2012 2016 2020 2024 2004 2008 2012 2016 2020 2024 GDP and Potential GDP Unemployment Rate FEBRUARY 2013 Notes Numbers in the text and tables may not add up to totals because of rounding. Unless otherwise indicated, years referred to in describing the budget outlook are federal fiscal years (which run from October 1 to September 30) and years referred to in describing the economic outlook are calendar years. The figures in Chapter 2 have white vertical bars that indicate the duration of recessions. (A recession extends from the peak of a business cycle to its trough.) The economic forecast was completed in mid-January 2013, and the estimates of 2012 values shown in tables and figures in Chapter 2 and Appendix B are based on information available at that time. Supplemental data for this analysis and the historical budget data that are usually included in this report are available on CBO’s Web site (www.cbo.gov). CBO Pub. No. 4649 Contents Summary...
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...Answers to end-of-chapter problems Chapter 1 Quick Check 1. a. True. b. True. c. False. d. False/uncertain. The rate of growth was higher during the decade beginning in 1996 than during the previous two decades, but it is probably unrealistic to expect productivity to continue to grow at such a fast pace. e. False. There are problems with the statistics, but the consensus is that growth in China has been high. f. False. The European “unemployment miracle” refers to the relatively low European unemployment rate in the 1960s and the early 1970s. g. True. h. True. 2. a. More flexible labor market institutions may lead to lower unemployment, but there are questions about how precisely to restructure these institutions. The United Kingdom has restructured its labor market institutions to resemble more closely U.S. institutions and now has a lower unemployment rate than before the restructuring. On the other hand, Denmark and the Netherlands have relatively low unemployment rates while maintaining relatively generous social insurance programs for workers. In addition, some economists argue that tight monetary policy has at least something to do with the high unemployment rates in Europe. b. Although the Euro will remove obstacles to free trade between European countries, each country will be forced to give up its own monetary policy. Dig Deeper 3. a. The Chinese government has encouraged foreign...
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...DETERMINATION MACROECON OMICS VARIAB LES AN D S TOCK RETU RN : A CAS E OF F IN AN CE S E CTOR AN D TRAD IN G & S ERVICE S E CTOR IN MALAYS IA P a u lin e Ch ee Ba ch elor of F in a n ce (H on ou r s) 2010 CHAPTER ONE INTRODUCTION 1.1 Introduction Stock market is a place for listed companies to raise capital .Companies can use the capital for continuing operating activities and expand business. However, the investors are explained to get a positive return from dividend and capital gain in the stock market. Based on the history, the economic condition will influence stock market. For instances, Malaysia faced deflation during the Asian crisis in years 1997. It caused the KLCI index sharply reduced from 1207.43 to 470.43. It have been shown that the investors need to predict the stock prices based on the macro factors to get an abnormal return from stock market There were a lot of researches to study the relationship between macroeconomics variables and stock returns. It is important to study the interaction of macroeconomics factor and stock return. Based on the study, the public can identify which factors can influence the stock market and use the knowledge to predict movement of stock price. According to Wongbangpo & Sharma (2002), the research can reveal the functions of stock market in identify the change in economic condition and also can predict the future performance of stock market. Besides, the study will be useful for the stock market participators...
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...THE RELATIONSHIP BETWEEN STOCK MARKET AND ECONOMIC GROWTH IN ASEAN COUNTRIES BY KOH YONG HONG CHOONG PIK SIN LEE SOCK MEI NG HON MENG LEONG MUN HONG A research project submitted in partial fulfillment of the requirement for the degree of BACHELOR OF BUSINESS ADMINISTRATION (HONS) BANKING AND FINANCE UNIVERSITI TUNKU ABDUL RAHMAN FACULTY OF BUSINESS AND FINANCE DEPARTMENT OF FINANCE MARCH 2016 Copyright @ 2016 ALL RIGHTS RESERVED. No part of this paper may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, graphic, electronic, mechanical, photocopying, recording, scanning, or otherwise, without the prior consent of the authors. DECLARATION We hereby declare that: (1) This undergraduate research project is the end result of our own work and that due acknowledgement has been given in the references to ALL sources of information be they printed, electronic, or personal. (2) No portion of this research project has been submitted in support of any application for any other degree or qualification of this or any other university, or other institutes of learning. (3) Equal contribution has been made by each group member in completing the research project. (4) The word count of this research report is 10,786 words. Name of Student: Student ID: Signature: 1. KOH YONG HONG 11ABB02521 2. CHOONG PIK...
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