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How is economics works with interaction of individual choices?
Principles behind the interaction of individual choices:
1. There are gains through trade.
• Specialization
• Trade and gains from trade
2. Markets shift toward equilibrium.
3. Resources must be used as efficiently as possible to attain society’s goals.
• Efficiency
• Equity
4. Markets generally lead to efficiency.
Exceptions: Market failure
5. While markets don’t attain efficiency, government intervention can enhance society’s welfare.
how the theories of trade cycle affects in the business
If the price of a good rises, what are people likely to do? a Substitute a less expensive good b Buy more of the good c Buy more of all goods because of added buying power d All of
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Goods in the circular flow If Y R is total value of all goods going from F R to F H , then total value added from all firms in the F R box is equal to Y R (they don't pu
Sustainability of Current Account Deficit: Theoretically speaking, a current account deficit can be sustained as long as the growth rate of national income exceeds the rate of
i have an assignment i need it to be done by thursday march the 10th before midnight
what is gdp
graph the central equation of the solow model. argue that a steady state exists and that the economy will converge to this point from any initial starting capital stock
The final and most important part of the methodology is the impulse response functions which will provide the most information with regards to the aim of the project. In order to a
When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in a. the demand for this wine b. the supply of
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