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Mark Lorenzo

добавлена новая статья Financial Services
2023-06-19 20:20:36 -

Aggregate demand in Keynesian analysis
Key points Aggregate demand is the sum of four components: consumption, investment, government spending, and net exports. Consumption can change for a number of reasons, including movements in income, taxes, expectations about future income, and changes in wealth levels. Investment can change in response to its expected profitability, which in turn is shaped by...

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Mark Lorenzo

добавлена новая статья Financial Services
2023-06-06 19:49:43 -

Beyond GDP: other ways to measure the economy
Key points Gross national product, or GNP, includes what is produced domestically and what is produced by domestic labor and business abroad in a year. National income includes all income earned: wages, profits, rent, and profit income. Net national product, or NNP, is GNP minus depreciation. Depreciation is the process by which capital ages...

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Mark Lorenzo

добавлена новая статья Financial Services
2023-07-03 20:32:32 -

Changes in equilibrium price and quantity: the four-step process
Key points There is a four-step process that allows us to predict how an event will affect the equilibrium price and quantity using the supply and demand framework. Step one: draw a market model (a supply curve and a demand curve) representing the situation before the economic event took place. Step two: determine whether the economic event being analyzed affects demand...

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Mark Lorenzo

добавлена новая статья Financial Services
2023-04-10 20:19:42 -

Changes in equilibrium price and quantity: the four-step process
Key points There is a four-step process that allows us to predict how an event will affect the equilibrium price and quantity using the supply and demand framework. Step one: draw a market model (a supply curve and a demand curve) representing the situation before the economic event took place. Step two: determine whether the economic event being analyzed affects demand...

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Mark Lorenzo

добавлена новая статья Financial Services
2023-05-01 20:28:31 -

Command-and-control regulation
Key points Command-and-control regulation sets specific limits for pollution emissions and/or mandates that specific pollution-control technologies that must be used. Although such regulations have helped to protect the environment, they have three shortcomings: they provide no incentive for going beyond the limits they set; they offer limited flexibility on where and...

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Mark Lorenzo

добавлена новая статья Financial Services
2023-07-21 19:23:46 -

Command-and-control regulation
Key points Command-and-control regulation sets specific limits for pollution emissions and/or mandates that specific pollution-control technologies that must be used. Although such regulations have helped to protect the environment, they have three shortcomings: they provide no incentive for going beyond the limits they set; they offer limited flexibility on where and...

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Mark Lorenzo

добавлена новая статья Financial Services
2023-04-04 20:28:05 -

Comparing GDP among countries
Key Points Since GDP is measured in a country’s currency, in order to compare different countries’ GDPs, we need to convert them to a common currency. One way to compare different countries' GDPs is with an exchange rate, the price of one country’s currency in terms of another. GDP per capita is GDP divided by population....

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Mark Lorenzo

добавлена новая статья Financial Services
2023-04-19 19:48:00 -

Decisions within a budget constraint
Key points The budget constraint is the boundary of the opportunity set—all possible combinations of consumption that someone can afford given the prices of goods and the individual’s income. Opportunity cost measures cost in terms of what must be given up in exchange. Marginal analysis is the process of comparing the benefits and...

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Mark Lorenzo

добавлена новая статья Financial Services
2023-07-12 20:28:58 -

Decisions within a budget constraint
Key points The budget constraint is the boundary of the opportunity set—all possible combinations of consumption that someone can afford given the prices of goods and the individual’s income. Opportunity cost measures cost in terms of what must be given up in exchange. Marginal analysis is the process of comparing the benefits and...

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Mark Lorenzo

добавлена новая статья Financial Services
2023-07-11 19:48:45 -

Economic efficiency
Key Points Economic efficiency is the idea that it is impossible to improve the situation of one party without imposing a cost on another. If a situation is economically inefficient, it becomes possible to benefit at least one party without imposing costs on others. Consumer surplus is the gap between the price that consumers are willing to...

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