3 Economic Institutions

• I decided to do a thorough study of Political Economy.

• Discuss how economists use economic reasoning.

• An artist sees color when he looks at the world.
• A musician hears music when she looks at the world.
• An economist sees a symphony of costs and benefits when she looks at the world.
• The economist's world isn't as colorful or melodic as the others', but it is more practical.
• If you want to know what's going on in the world, you need to know economics.

• If you keep up with the news, I don't have to convince you.

• There will be stories of unemployment, interest rates, how commodity prices are changing, and how businesses are doing.
• The list is endless.
• Let's say you agree that economics is important.
• Part of what you learn depends on you, but another part depends on the textbook.

• It can mean many things.
• The study of economics refers to how the three central problems of the economy are solved.

• There are fights, arguments, and questions that come up in a family.
• A new sweater was given to Bobby.
• Take the size of the family and divide it by millions.
• The coordination questions faced by are millions of times more complicated than the fights and arguments.
• Society is complicated in answering these questions.

• Our means of fulfilling our wants are two elements of scarcity.
• Since wants are changeable, they can be interrelated.
• The way we fulfill wants can affect them.
• If you work on Wall Street, you'll want upscale and trendy clothes.
• In Vermont and Florida I wear Levi's and flannel, but in Florida I wear shorts.

• The degree of scarcity is constantly changing.
• The quantity of goods, services, and usable resources depends on technology and human action.

• We don't know what technologies will be in our future, but they could possibly eliminate scarcity of goods we currently consume.
• They wouldn't eliminate scarcity completely since new wants are constantly evolving.

• The answer is not voluntary.
• In all known economies, coordination has involved limiting people's wants and increasing the amount of work individuals are willing to do to fulfill those wants.

• Many people would rather play than help solve society's problems.

• Thinking like an economist, so that the things some people want to do are consistent with the things other people want to do.

• Economic theory is divided into two parts.
• Micro economic theory considers economic reasoning from the viewpoint of indi Micro economic theory considers economic reasoning from the viewpoint of indi

• Micro economic studies such as the pricing policies of firms and how markets allocate resources among alternative ends.

• Everything gets more complicated as we build up from micro economic analysis to an analysis of the entire economy.

• The study of the whole is called macroeconomics.
• The problems of inflation, unemployment, business cycles, and growth are considered.

• Aggregate relationships such as how household consumption is related to income and how government policies affect growth are the focus of macroeconomics.

• Think of the human body as an analogy.
• A micro approach analyzes a person by looking at each individual cell.
• A macro approach starts with the person and goes on to his or her components.
• Microeconomics analyzes from the parts to the whole, Q-1 Classify the following topics as primarily macroeconomic or macroeconomics analyzes from the whole to the parts.

• Microeconomics and macroeconomics are interdependent.

• Aggregate output is what determines the impact of a tax increase on the economy as a whole.

• The relationship between two examples is dependent on the pricing behavior of the competing firms.

• People who are trained in economics think in a certain way.
• They compare the costs and benefits of every issue and make decisions based on those costs and benefits.
• Say you're trying to decide if a policy to eliminate terrorist attacks on airlines is a good idea.
• They are open to the idea that security measures, such as body searches of every passenger or scanning all baggage with bomb- detecting machinery, might not be the right policy because the costs might exceed the benefits.
• To think like an econo mist involves using a cost/benefit approach.
• Economic rea soning involves abstracting from the unimportant elements of a question and focusing on the important ones by creating a simple model that captures the essence of the issue or problem.
• By collecting empirical evidence and "testing" the model, you can see if it fits.

• The economists returned to their desks cold.
• He called his economic advisers and pondered their impossible task.
• If they weren't successful, write up all the economic knowledge the society has about their fate.
• After many years of hard work, they presented their last meal.

• The delivery person was angry with the man for running a kingdom.

• They looked at each other and wondered how they could summarize what they had learned.

• They tried down the sentence and presented it to the king, who would make an appointment to see him.

• They couldn't afford to live on their own, most of them earned less than $5 an hour.
• Cost/benefit analysis is used to answer that.
• Levitt's model assumes that people rely on a cost/benefit analysis to make decisions and that people do what is in their best interest financially.
• He supports his argu ment through careful empirical work, collecting and organizing the data to see if they fit the model.
• His work is an example of thinking like a modern economist.

• Economic reasoning is infectious once learned.
• Being exposed to it will change your life.
• It will affect your analysis of issues that are normally considered outside the scope of economics.
• You will most likely use economic reasoning to decide who will pay for dinner on Saturday night.
• You will most likely use it to decide whether to read this book, attend class, marry, or work after you graduate.
• This doesn't mean that economic reasoning will provide all the answers.

• Throughout the book, you will see that real-world questions are complicated and economic reasoning provides a framework to approach them.
• Every choice has costs and benefits, and decisions are made by comparing them.

• The concepts of marginal costs and marginal benefits are important.

• When making a decision, relevant costs are included.

• For example, attending class, costs and benefits should be considered.
• It is a sunk cost if you have already paid your tuition.
• The marginal cost of going to class does not include tuition.

• The marginal benefit of reading this chapter now is that you already know everything.

• If you compare marginal costs with marginal benefits, you will be able to adjust your activities to be as well off as possible.

• If you bought a share of my tuition, I can't get any of the Oracle for $100 and a share of Cisco for tuition back, so the tuition is a sunk cost and doesn't enter into my decision.

• The price of each is fifteen dollars.

• I want to tell her that I give a quiz every week, that students who miss a quiz fail the quiz, that those who fail all the quiz zes fail the course, and that those who fail the course do not graduate.
• She is under estimating the benefits of attending my classes.
• The marginal benefits of attending my class are underestimated.
• She should attend my class.

• It's reasonable to know that everything has a cost, but not everyone likes it.
• Some of the passion is taken out of life.

• Saving some people's lives may not be worth the additional cost.
• The money could be better spent on nutrition programs that will save 20 lives for every 2 lives you save with transplants.

• Maybe we shouldn't try to eliminate all pollution because of the idea that everything has a cost.

• To eliminate all pollution might be too much.

• Providing a guaranteed job for every person who wants one might not be a worthwhile policy goal if it means that the economy will not be able to adapt to new technologies.

• You understand the idea.
• This kind of reasonableness is criticized for being coldhearted.
• Econ Omists argue that their reasoning leads to a better society for the majority of people.

• Economists' reasonableness isn't appreciated by everyone.

• I discovered some years back that businesses love the result, but others aren't so sure.
• She knew that there were many types of reason ableness, but not everyone thought an economist's reasonable ness was a virtue.

• It's not easy to put economists' cost/benefit rules into practice.
• Is there a reason why it is possible to choose and measure the costs and benefits correctly?
• Economists have come up with a cost/benefit approach to the problem of opportunity cost.

• You must give up something else to get the benefit of something.

• The opportunity cost is the market value of the next-best alternative and it is a cost if you choose one thing.
• The opportunity cost concept is exemplified by the TANSTAAFL story in the added dimensions box.

• Let's look at some examples.
• The benefit you'd get from going out with your steady is the opportunity cost of going out with Natalie or Nathaniel.
• The opportunity cost is the basis of the cost of cleaning up the environment and may be a reduction in the money available to assist benefit economic reasoning.
• The opportunity cost of having a child might be two boats, benefit that you might have gained from choosing the next-best alternative.

• What courses to take and how much to study are relevant to you.
• At the beginning of the term, you had to choose five courses to be a full-time student.
• Taking one precludes taking some other, and the opportunity cost of taking an economics course may be not taking a course on theater.
• You don't have a lot of time to study economics, sleep, or partying.
• The more time you spend on one activity, the less time you have for another.
• That's the cost of opportunity.

• Opportunity Cost focuses on two aspects of costs of a choice that are often forgotten-- Opportunity Cost implicit costs and illusionary sunk costs.

• Students often study economics out of context.

• Adam Smith could and sometimes in the appendixes ics as a subdiscipline, I'll put the also be classified as an anthropologist, a sociologist, and a analysis in perspective.

• There were few social philosophers in the 1500s who covered all aspects of social ties.
• Religion, Latin, Greek, and phi science were taught by those that existed.
• The pre-enlightenment thinker would answer in evidence.

• The book is part of the Marshallian tradition.

• The amount of information ex it goes beyond Marshall and introduces you to a wider panded so rapidly that it had to be divided or categorized into different models and thinking for an individual to have hope of knowing a subject.
• Marshall used models soon.

• The sciences were split into natural sciences theory in the 1700s in Marshallian economics.
• It sees institutions as well as political and social sciences.
• In the late 1800s and early 1900s social science economics ties in to reality and the amount of knowledge kept is important.

• It isn't usually because it is an implicit cost.
• If owners add the value of their time to their cost, which economists argue they should, then their profit often becomes a loss.
• They might have earned more if they had taken a job somewhere else.
• licit costs should be included Sunk costs should not be included in making decisions.
• Econo mists argue that illusionary sunk costs should not be considered in a choice because they are already spent.
• They won't change even if the person making the decision chooses to do so.
• When you buy a book that can't be resold, what you paid for it is sunk.

• Whether to read it is one of the costs relevant to decisions.
• The opportunity cost concept reminds different from the measured costs.

• The relevance of opportunity cost is not limited to individual decisions.

• The guns-versus-butter debate is a common example.
• John will have less butter because he has more guns.
• When society decides to spend $50 billion more on an improved health studying this chapter is about 1/38 the care system, the opportunity cost of that decision is $50 billion not spent on helping price you paid for this book, since the chapter is about 1/38 of the book.
• Is he homeless, paying off debt, or providing for defense?

• There are many implications of the opportunity cost concept.

• It's only reasonable to be somewhat unreasonable if there's a cost to being reasonable.
• You have caught the economic bug if you followed that argu ment.
• I'll show you economic thinking in the rest of the book if you remember the oppor tunity cost concept.

• Ali states how society reacts to scarcity.
• rationing health care is immoral when goods are scarce.
• A mechanism must be chosen to determine who gets what.

• Let's look at some real-world rationing mechanisms.
• Dormitory rooms are often rationed by lottery, and permission to register in popular classes is often rationed by a first-come, first-registered rule.
• Food in the US is usually rationed by price.
• There wouldn't be enough food to go around if price didn't ration it.
• All goods must be rationed.

• One of the important choices a society must make is whether to allow these economic forces to operate freely and openly or to try to rein them in.
• Market forces change prices.
• The price market force when there is a shortage.

• The price goes down when there's a surplus.
• The market works like an invisible hand, guiding economic forces to coordinate individual actions and allocate scarce resources.

• Societies can't decide whether or not to allow economic forces to operate.

• Society can choose whether to allow market forces to dominate.
• It's important that market forces are allowed to operate.
• The economic reality is determined by a contest.

• The problem of getting a date for Saturday night can be prevented by social, cultural, and political forces from becoming a market force.

• If a school had more heterosexual people of one gender than the other, some men would find themselves without a date, and would have to find something else.
• An "excess supply" person could solve the problem by paying someone to go out with him or her, but that would have changed the nature of the date.
• The person who was offered payment would be revolting.

• If the money were guaranteed, there would be many stories about Nancy Astor.

• She said that she married into the English aristocracy.
• The English social and political scene were already bright.

• There is a moral pub that has a theoretical discussion about Lady Astor.
• As a (c)Bettmann/Getty Images, it can be very strong.
• Lady Astor pondered for a while and finally answered, "she world events."

• Joan states an example of the social and cultural norms that limit our activities.

• Political and social forces work together.
• In the United States, there aren't enough babies to satisfy all the couples who want them.
• Babies born to certain parents are rationed.
• A group of parents want babies.
• Those who can have a baby, but can't have one, try to adopt.
• Adoption agencies ration babies.
• Who gets a baby depends on who people know at the adoption agency and who the birth mother is, who can often specify the background of the family in which she wants her baby to grow up.
• The economic force in action is that it gives more power to the supplier of something that is in short supply.

• The economic force of buying and selling babies would be translated into a market force in our society.
• The amount of babies supplied would be equal to the amount of babies demanded.
• The adoption agencies wouldn't do the rationing because the market would.
• It's useful to think about how they do it.

• Some babies are sold on a gray market even though it's against the law.
• The market price for a healthy baby was $30,000 recently.
• If selling babies were legal, the price would be lower because there would be a larger supply of babies.

• I find the idea of selling babies repugnant.
• Political forces reinforce the strength of social forces.
• There are hundreds of examples of social and political forces trumping economic forces.

• What isn't allowed in one society isn't allowed in another.
• In North Korea, a lot of private businesses are against the law, so not many people start their own businesses.
• Most people in the United States refrained from holding gold because it was against the law to do so until the 1970s.
• The laws of a country determine whether the invisible hand will be allowed to work.

• There are social and political forces in your life.

• You don't practice medicine unless you have a license, and you don't sell drugs unless you have a license.
• These actions are against the law.
• There is a lot of interest to borrow money.

• You don't charge your friends interest to borrow money, you don't charge your parents for their food, and many sports and media stars don't sell their goods.
• The list is long.
• You can't understand economics if you don't understand the limitations that political and social forces place on economic actions.

• What happens in a society can be seen as a reaction to economic, political and legal forces.
• Sociology and politics have a role to play in economics.

• In this book, I will show you how to use economic theories.
• Hip Hop Economics economic institutions are tied to theories and models.

• Think back to when you learned to add.
• You didn't memorize the sum of both of them, but you learned a principle of addition.
• You first add 7 + 8 when you add 147 and 138, according to the principle.
• You add 4 + 3 to get 8 and write down the 5.

• The answer is 285.
• You know how to add millions of combinations of numbers when you know just one principle.

• To see if the predictions of the model match the data, theories, models, and principles are brought to the data.
• Increased computing power and new statis tical techniques have given modern economists a much more rigorous set of procedures to determine how well predictions fit the data than was the case before.
• This has led to a stronger reliance on quantitative empirical methods in modern economics.

• There are different forms of modern empirical work.
• Experiments are run in certain instances to study questions.
• There are laboratory experiments in which individuals are brought into a computer laboratory and their reactions to various treatments are measured and analyzed, field experiments in which treatments in the real world are measured and analyzed, and computer experiments in which simulations of economies are created.

• When New Jersey raised its minimum wage, Pennsylvania did not.
• The minimum wage increase in New Jersey did not affect employment as Alan Kruger and David Card found.
• There was a debate about what the evidence was telling us.
• It is not possible to hold "other things constant" in natural experiments, and thus the empirical results in economics are more subject to dispute.

• Economic models are usually too general to apply in specific cases.

• It is important to distinguish between precepts and theorems in discussing policy implications of theories and models.

• The way economists study problems has changed due to increased data availabil ity and computational power.
• Older economists are more likely to look for stable statistical relationships in the data and use those relationships to guide their policy, which is why economists fresh out of graduate school are more likely to let the data speak.
• Modern economists are involved in the development of systems that can perform tasks that people used to think required human intelligence such as the ability to learn from the past, find meaning, and reason, known as artificial intelligence and deep learning systems.
• Theories of how an economy works and how systems process information are reflected in the approach to problems underlying these systems.

• Even though you don't know the particulars of each phenomenon, knowing a theory gives you insight into a wide variety of economic phenomena.

• Under certain conditions, economists have developed a theory of markets that leads to the further hypothesis that markets are efficient.

• The market will allocate scarce resources efficiently.

• Theories are an efficient way of conveying information, but they are also abstract.

• The result of forgetting assumptions could be similar to what happens if you don't know the theory.

• Remembering all the steps can lead to a wildly incorrect answer.

• Knowing the assumptions of theories and models will allow you to progress beyond your gut reaction and better understand the strengths and weaknesses of various economic theories and models.
• The central economic assumption is that individuals behave rationally and that what they choose reflects what makes them happy.
• The invisible hand theorem doesn't hold if that assumption doesn't hold.

• The invisible hand theorem is an important part of any economics course.
• The assumptions on which it is based and the limitations of the invisible hand are important parts of the course.
• I will do both of them in the book.

• Theory is a shorthand way of telling a shorthand way of telling a story.
• The stories make the theory a story.

• I present a lot of theories and models, but they are accompanied by stories that show the context that makes them relevant.

• When there are many new terms, discussing theories takes up a lot of the presentation time.
• That is the nature of the beast.

• Think about the underlying story of the theory when it becomes oppressive.
• The story should be concrete.
• You don't understand the theory if you can't translate it into a story.

• If you want to apply economic theory to reality, you need to know about eco, nomic institutions, common practices, and organizations in a society that affect the economy.
• Corporations, governments, and cultural norms are all examples of eco- institutions.

• Economic institutions operate in ways that are different from eco nomic theory.
• Economic theory says that prices are determined by supply and demand.
• Businesses say that they set prices by rules of thumb--often called cost-plus-markup rules.
• The price is determined by the firm's costs being divided by 1.4 or 1.5 and the result is the price it sets.

• Economic reasoning plays firms that reduced emissions by increasing their role in government policy.

• The Clean Air Act was passed in 1970 because of the strong incentive to reduce response to concerns about pollution.
• The amount of pollutants that could be capped was for firms that had a high cost of reducing sulfur dioxide, carbon monoxide, nitrogen and other pollutants.

• This was a "command-and-control" approach to regulation,duction was the same, but the reduction was achieved at a which brought about a reduction in pollution, but also lower cost.

• De Enter economists have an active market in emissions.
• The cost of reducing sulfur dioxide overall reduction in pollution is estimated to have been lowered by the cap-and-trade program that they proposed.
• In emissions by $1 billion a year, the government still set a pollution cap that is more than half of what firms had to meet, but it gave individual firms below the cap.
• Some cap-and-trade programs have flexibility.
• Firms that reduced emissions less than others.
• The current state of the required limit can be found at www.epa.gov/airmarkets.

• There are two different explanations for the apparent contradictions.
• These issues may be related to the differ ences.
• Economic principles can affect decisions from behind the scenes.
• The supply and demand pressures determine what the price will be.
• To gain the full value of economic insights, you have to have a sense of economic institutions.

• The economic policy options facing our society are presented in the final goal of the course.

• There is no sense in talking about policy options if you don't know economic terminology, economic theory, and economic institutions.

• Policies can influence the institutions to carry out economic policy effectively.
• One needs to understand how institutions tion of the two-parent family is affected by welfare policy.
• A variety of might change was developed in the United States in the 1960s.

• The initiatives provided income to single parents with children and assumed that family structure would not change.
• The number of single-parent families increased due to the changes in family structure.
• The programs failed to eliminate poverty.
• It is only to say that we must build into our policies their effect on policies offer the largest gains if we want to eliminate poverty.

• Good economic policy analysis keeps the analyst's value judgments separate from the analysis.
• "This is the way things should be" is not reflected in objective analysis.
• The analyst's view of how things should be would be reflected in that analysis.
• An objective analysis tries to keep an individual's subjective views separate.
• That doesn't mean that policy analysis doesn't involve value judgments.
• An objective researcher attempts to make the value judgments being used both trans parent and not his own, but instead value judgments an "impartial spectator"

• The pure theory of economics is explored and how the economy works.

• Eco nomic theorists relate their theories to the facts.
• These questions are under the heading of eco nomic theory.

• Economic theory doesn't provide definitive policy recommen- Q-9 John, your study partner, is a dations.
• It's too abstract and makes too many assumptions that don't match the free market advocate.
• He believes in that behavior.
• There are positions that logically follow the assumptions of the model.

• These theorems don't tell us what to do.

• Policy is decided by economists with insights from positive economics.
• It should be.

• It is not possible to assume that one's own goals for society are society's goals.
• Let's look at an ongoing debate in economics.
• Some econo mists are worried about climate change, they believe that high consumption in rich societies is causing it, and that the high consumption is a result of 18 introduction.
• The economists argue that society's goal should be more focused on the implications of economic activities for climate change and the distribution of income.

• Philosophers advise economists on what the goals of society should be.
• That hasn't always been the case.
• The goal required economists to consider policy in terms of consequences, not morality.
• They had to consider policy from the perspective of a fair society, not from a per spective that was good for one group.
• They had to bend over back to maintain impartiality.

• Early economists argued against slavery and the oppression of women at a time when those positions were unpopular and seen as radical.
• It led them to argue in favor of significant coordination of society by the market, which they felt would bring about greater happiness for a greater number than would the alternative of significant government coordination.
• Their port of markets was based on their moral philosophy.

• People were not expected to arrive at definitive policy conclusions based on this tool.
• They saw the tool as a way for people to discuss policy in terms of what was best for society as a whole, not what was best for themselves or their friends.
• The tool would focus on the impact of policy on people in the community, rather than on the morality of policy.
• The approach to morality was an important part of policy economics, and how economists moved from the theo rems developed in science to policy precepts.

• The economists decided that it was impossible to determine the goals of policy scientifically.
• A general measure of people's welfare used in policy analysis is not scientifically measurable.
• Economic science does not lead to policy conclusions.
• To move to policy conclusions, one needs to supplement science with moral philosopher insights developed in self-reflective considerations and discussions with others about what is meant by the greatest good for the greatest number.
• Policy economists have to picture themselves walking in the shoes of every person they have ever met.

• The recommended policies reflected the debate about climate change.
• Scientists are now convinced that cli is in action, if you want to change the re mate change is occurring and that you want to change the incentives that individu man activity such as the burning of fossil.

• The costs of not doing any complicated policy issues since they differ in their norma thing would likely reduce output by 20 percent in the tive views and their assessment of the problem and of future, and those costs are weighted for when what politically can be achieved.

• The economic framework is the second part of the question.
• Policies that raised the lowed and decreased the take part in the debate were recommended by him.

• The art of economics is what most policy discussions are about.

• Positive economics, The Art of Economics, and goals are all related to precepts.
• The art of economics requires econo- Q 10 to tell if the following mists are appropriate for achieving the goals in the five statements.
• Once the assumptions are agreed upon, models are not debatable, precepts are debatable, and economists use the same or the art of economics.

• A model can tell us that rent con- 1.
• The market is efficient.

• Rent controls may have some achieve efficient results, since the market that rent controls are bad policies.

• Rent controls are bad policy because of a judg- 3.
• If one wants a reasonably efficient result, markets should probably be relied on.

• Keynes made this three-part distinction back in 1891.

• Keynes and Lipsey in the 1950s instilled in modern economics the idea of markets allocating income.
• The art of economics was downplayed by the contributors.

• When I say that economists tend to favor a policy, I am talking about precepts, which means that alternative perspec tives are possible even among economists.

• In each of the three branches of economics, economists separate their own value judgments from their objective analysis.
• "As much as possible" is important, since some value judgments inevitably sneak in.
• We are products of our environment, and the questions we ask, the framework we use, and the way we interpret the evidence all reflect our background.

• Positive economics is easiest to maintain objectivity in, where you are working with models to understand how the economy works.
• It is difficult to maintain objectivity in economics.
• You should always be objective about the values you are using.
• It's easy to assume that all society shares the same values.

• Maintaining objectivity is difficult in economics because it can suffer from both positive and negative economics.
• To practice the art of economics, we must make judgements about how non economic forces work.
• Our own value judgments are likely to be reflected in these judgments.
• We have to be very careful in practicing economics.

• When you think about the policy options facing society, you will quickly realize that the choice of policy options is much more than economic theory.
• Historical precedent, social, cultural, and political forces must be taken into account to understand what policies are chosen.
• I don't have time to analyze these forces in the way I would like.
• There are separate history, political science, sociology, and anthropology courses.

• It is true that the other forces play a significant role in policy decisions.
• If the invisible hand were the only force that could operate the economy would be different.
• We must take into account political and social forces when applying theory to reality and policy.

• It will make my point more concrete.
• It's good economic sense to hold down or eliminate tariffs on imports, according to most economists.
• Governments should follow a policy of free trade.
• Society is led in a different direction by politics.
• If you're advising a policy maker, you need to make sure that the other forces are taken into account and that they can be integrated with your recommendations.

• A lot more could be said to introduce you to economics, but that's not an introduction.

• You were introduced to economic reasoning.

• We're going to cover a lot in this book.

• You have an idea of my writing style.

• We'll be spending a lot of time together over the coming term, so it's best to know your partner.
• By the end of the book, you will know me.
• You will know me even if you don't love me as my mother does.

• "There ain't no such thing as a free lunch" solve are what to produce, how to produce it, and the opportunity cost for whom to produce it."
• Concept in solving problems.

• The forces of scarcity and economic forces are always working.
• Market forces that ration by changing are not always allowed to work.

• Economic reality is controlled and directed by three economic forces.
• Economic forces, political forces, and the economy as a whole are studied in macroeconomics.
• Problems and social forces are considered.

• Policymakers should not do it if the marginal costs exceed the marginal benefits.

• Economics can be divided into positive economics and the opportunity cost of undertaking an activity.
• The study of what is, normative economics next-best alternative is a positive benefit from choosing economics.

• Should the U.S. interest rates be lowered?

Will there be more doctors selling forces?

• Most of us need one of the two kidneys.

• The seller is asking for $30,000.
• The person who has lost both of their kidneys accepts the problems if there are two micro economic and two macroeconomics on the list.

• The cost of attending college is your opportunity cost.

• The cost of taking this course is your opportunity cost.

• You can rent a car.

• The following statements are imposed on society.
• The government should spend the money on drug of economics based on this information.

• When quantity supplied exceeds quantity demanded, the price falls.

• What is the cost of buying a $20,000 b.

• You currently make $60,000 a year.
• You are a con person.

• A narrowly based tax is preferred by the job.

• You have a bachelor's degree.
• You spent $160,000 in tuition and books when California allowed trading.
• The above information is relevant to your decision on market force.

• Questions from Alternative Perspectives 1.

• All of economics is believed to be the same by radical economists.

• The free market or patriarchy might be able to explain why.
• In October of 2004, the supply of flu vaccine fell due to a number of factors.

• The vaccine had to be rationed.
• The radical position implies that young children, people with weakened immunity, and those over 65 are all part of the priority schedule.

• The outcome of the free market is economics value-laden or objective.

• Sometimes we regret our decisions.

• There was an accident that caused fumes to enter the school.
• Steven Landsburg believes that if one believes in a ventilation system, it will kill five children.
• The death penalty can be stopped by throwing a switch, but it can also be stopped by executing a child in another room.

• If a doctor could save five patients with an organ deterrent effect in cost saving, it would be more important than a de transplant to save lives.
• Estimates are that each execu is sick but not dead.

• Economics is about strategic thinking.

• She would like Mike to answer a question.

• She would like that answer to be true.

• He argued that if people weren't so selfish, society would be better off.
• This view fits with the hear.

• You can see the picture.

How can you avoid the song of his choice?

• Chuck Berry went on to 6 hits.
• Go to a convenience store and a supermarket.

• The prices may be different.
• The termi b is used.

• 100,000 people in the United States are waiting.
• How would they be willing to donate organs?

• Explain how an economic institution affects 11.
• According to the theory, people are hurt more by economic decision making or how it reflects losses than they are by gains of a corresponding economic principles.

What implications would it have for 9?

• Modern economists are more likely to let the data money to disc jockeys for playing songs.

• Answers to Margin Questions 1.
• If health care is not macroeconomics, then so be it.

• Since the price of both stocks is now fifteen dollars, it doesn't make sense to ration mat goods to which one you sell.
• The opportunity cost of gains taxation is likely.
• It's a sunk cost that the price you bought them for doesn't give you free health care.
• The societies would be willing to pay for marginal analysis.

• Joan is wrong.
• Market forces should determine which economic forces are not.

• Tomatoes will likely fall if you put a value on them in a cost/benefit analysis.

• Changes that have the largest gain also mean it.
• Consider love.
• It is possible that an acquaintance has the largest cost.
• If you want to buy his or her spiritual love, the policies economists should focus on are those that offer the largest net gain.

• John is wrong.
• The cost of reading a book.
• You spend most of your time reading the invisible hand theorem.
• The rem doesn't tell us anything about what to do.

• This isn't to say that gov't part of the opportunity cost, but it is a sunk cost.

• When there is scarcity, the good must be 10.
• Positive is the word for free health care.

• No one has ever seen a dog exchange one bone for another with another dog.

• The production possibility curve is related to the concepts of comparative advantage and efficiency.

• Through comparative advantage and trade, countries can consume beyond their individual production possibilities.

• It's relevant for an individual, for nonprofits, for governments, and for nations, but it's not a bad summary of the core of economic reasoning.
• It's true that once in a while you can snitch a sandwich, but what economics tells you is that if you're offered something that approaches free-lunch status, you should be on the lookout for some hidden cost.

• The production possibility model is used by economists to model the trade-offs society faces.
• This model is important for understanding why people specialize in what they do and trade for the goods they need.
• Individuals, firms, and countries can achieve more output through specialization and trade.

• The model can be presented in a table and a graph.
• I'll start with the table and move on to the graph.

• Let's look at a production possibility curve for an individual.
• You have to devote 20 hours a week to economics and history.

• The best you can do in history is a 98 with 20 hours of study a week; 19 hours guarantees a 96, and so on.

• A production possibility curve is a diagram that shows the information in the production possibility table.

• You can see a picture of the trade-off combination of outputs that can be obtained from a given number of inputs.

• A two-dimensional graph is used to create a production possibility curve.
• The history grade is plotted on the horizontal axis while the economics grade is plotted on the vertical axis.

• If you study history for 20 hours and economics for 0 hours, you will get a 98 and 40.
• If you increase your grade in economics by 3 points, you will have an opportunity cost of 2 points on your history grade.

• I'll be giving numerical examples throughout the book to help you understand the concepts.

• The numbers I choose are not always right.
• You have to make a choice.
• If you choose different numbers than I did, you can use those numbers to work out the argument.

• The economics grade is on the vertical axis, while the history grade is on the horizontal axis.

• The curve slopes from left to right.

• There is an inverse relationship between economics and grades in history.

• Given the existing institutions, resources, and technology, there is a limit to what you can achieve.

• Every choice has an opportunity cost.
• You can only get more by giving up something else.

• In the study-time/grade example, the cost of one grade in terms of the other remained constant; you could always trade 2 points on your history grade for 3 points on your economics grade.
• The production possibility curve was made straight by the assumption of an unchanging trade-off.

• If we are using the PPC to describe the choices that a society makes, probably not.

• We use the better ones first in the production of guns.

• The more we concentrate on that activity, the lower the opportunity costs are.

• Some resources are better suited for the production of certain goods.
• This curve shows society's choice between defense spending and domestic needs.

• As we increase the production of guns, the opportunity cost of choosing guns increases.

• The reason we have to give up butter is because we have a comparative advantage in some resources that are better suited to producing guns than others.

• There are points inside the production curve.

• Most are outward bowed of inputs shift the production inefficiency; points to the combination of outputs that because of the cost of producing possibility curve out.

• There are points of efficiency and points of inputs.

• The bility curve shifts along the possibility curve if the production possi outside the production cost doesn't change.

• When making small amounts of guns and large amounts of butter, we use the resources that have the advantage in the production of guns.
• Producing butter is one of the resources devoted to it.
• We're not giving up much butter to get those guns because the resources used in producing guns aren't good at producing butter.
• As we produce more and more of a good, we must use resources that are more suited for butter production than for guns.
• We must give up increasing amounts of butter as we remove resources from the production to get the same amount of guns.
• Guns' costs in terms of butter increase because we're using resources to produce guns that have a comparative advantage.

• Let's look at two more examples.
• The United States suddenly needs more wheat.
• We must devote more land to grow wheat.

• Our additional output of wheat per acre of land devoted to wheat will be less because this land is less fertile than the land we're already using.
• Relief pitchers can be used in a baseball game.
• If only one relief pitcher is needed, the manager sends in the best, if he must send in a second, a third, and even a fourth, the likelihood of winning the game decreases.

• Determine the point of inefficiency and efficiency.

• If possible, we would like to get as much output from a given amount of inputs as possible.
• We can see what is meant by productive efficiency by using the production possibility curve.

• We can see what is meant by efficiency by using the production possibility curve.
• The production possibility curve is inefficient.
• We can't go beyond the production possibility curve with existing inputs and technology.

• Technology improves how the curve shifts.

• The production possibility curve is the most output we can get from certain inputs.

• When technology improves and more resources are discovered, we can get more output with the same inputs.
• How technology improves will affect the production possibility curve.
• We become more efficient at making butter, but not more efficient at making guns.

• In real-world situa tions, such questions cannot be ignored.
• We can't say that one trucking business in Saudi Arabia will help some people but hurt others.
• The method of production is more efficient than the other, even if one method pro managers have noticed that women are paid less than men.
• The term only means that a hiring women would be more efficient.
• Say that we have a society of people who believe in that.

• Producing more for less would not be efficient since consumption is not the goal.

• We have a society that cares about the distribution of things.
• An increase in output that only goes to one person would not be efficient.

• You don't have to retrace your path and start over with the production possibility curve.
• Life has thousands of branches, and each decision you make there are two choices, one with a higher cost and one with rules out other paths, or at least increases their costs.
• Most choices are not good.

• One con path requires you to return to the beginning.
• The following text may not make sense in another.
• "Would society be better but it raises the costs of options along another path?"
• is a question that can be asked if one path lowers the costs of options.

• A decision tree is a visual description of text.
• The goal of a developing country increases sequential choices.
• A decision tree can be seen in the material output.

• In a developed country, growth in material output is more important than teaching literature.

• When interpreting the production possibility curve, it is important to recognize the contextual nature of decisions.
• The production possibility curve for a decision can only be analyzed in historical and institutional contexts because decisions are contextual.

• B possibility curve is more than just a technical phenomenon.
• The costs of path B options become higher when you make the initial decision to go on path A, as the curve is an engine of analysis to make contextual choices.

• Many policies have rela tively small distributional consequences because most people prefer more to less.
• On the basis of the assumption that more is more, economists use their own kind of shorthand for such policies and talk about efficiency as identical to productive efficiency--increasing total output.
• It's important to remember that the distributional effects of the policy are considered acceptable and that we prefer more output.

• Some situations that can be shown with the production possibility curve can be examples of Shifts.
• There are four situations.

• Half of the earth's natural resources are destroyed by a meteorite.

• A natural disaster hits the 2.
• The cost of manufactured goods can be lowered.

• There is a new technology that can double the speed at which goods can be produced in the U.S.

• Climate change makes it more expensive to produce agricultural goods.

• The correct answers are 1-d, 2-a, 3-b, and 4-c.

• You are well on your way to understanding the production possibility curve if you got them all right.

• The curves reflect different types of shift.
• Your assignment is to match the shifts with the situations in the text.

• The basics of the production possibility curve have been covered.

• The guns and butter produc tion possibility example I presented earlier should remind you of the argument.

• We gain a lot of guns for little butter because we take resources away from producing butter that had a comparative advantage in pro ducing guns.

• A society wants to be on the edge of its production possibilities.
• Individuals have to produce goods for which they have a comparative advantage.
• How to direct individuals toward those activities is a question for society.
• The answer is easy for a firm.
• The firm's resources can be used by a manager.
• He or she can assign an employee with good people skills to the human resources department and another with good research skills to research and development.

• He argued that humankind's proclivity to trade leads to individuals using their comparative advantage.
• This division of labour, from which so many advantages are derived, is not the result of any human wisdom at all.
• Adam Smith argued that it is necessary, though very slow and gradual, because of a certain propensity in human nature.

• A dog makes a fair and deliberate exchange of one bone for another with another dog.

• I am willing to give this for that, because nobody has ever seen one animal by its gestures and natural cries signifying to another.

• Smith argues that the market will guide people to gravitate toward activities with a comparative advantage as long as people trade.

• The growth of economies can show the effect of trade on our well-being.
• The world economy grew very slowly for 1,700 years.
• The world economy grew rapidly at the end of the 18th century.

• The spread of democracy is aided by the introduction of markets.
• There is something about markets that leads to growth.
• There are markets that allow specialization and age trade.
• A small part of the story is the bow out of the production possibility curve.
• As individuals compete and specialize, they become even better at what they do.
• Competition pushes indi viduals to find better ways of doing things.
• New tech nologies are created to further the growth process.

• Markets can be as simple as selling lemonade at a cialize in the new millennium.
• There are many businesses on the stand.

• The world economy grew slowly for 1,700 years.

• The $4,000 world economy has grown at increasing rates since the end of the 18th century.

• Thinking Like an Economist is providing online competition for traditional colleges.
• Online stores are growing.
• As internet technology builds into our economy, we can expect more specialization, more division of labor, and more economic growth.

• When Gains from Trade sells you meat, he's better off with the money you give him, and you're better off with voluntary trade.

• Voluntary trade is a win-win.

• When there is competition in trading, individuals are able to pick the best trades available to them, and each individual drives the best bargain he or she can.

• Both individuals in the trade benefit from what others are willing to trade.
• Laissez-faire is a precept in economics because it extends the implications of a model to reality and draws conclusions about the real world.
• It is based on judgments about the relevance of the model, as well as assumptions about which the model is based.

• In the absence of trade, the most each country can consume is a combination.

• If each specialized, doing what it does best, and then traded with the other, what would happen?
• The production and consumption decisions are separated by this.

• It makes sense for Belgium to specialize in that.

• 4 tons of chocolate and 4,000 yards of textiles can be produced by Steve.
• 8 dozen cookies a day would be divided between the countries.

• Both are consuming beyond their production possibility curves.

• These gains lead to economists' support of free trade.

• The pressure to find comparative advantages is never-ending.

• Those involved in the trade will be better off.
• Each country can consume a combination of goods if it specializes and takes advantage of its comparative advan tage.

• Producing textiles in Belgium is 500 yards and 2 tons.
• Two countries can labor and have a low-cost source of power.
• As the cost of U.S. labor went up, the comparative advantage disappeared.
• The countries with it have a comparative advantage.

• Total costs have fallen as firms have moved production to Bangladesh.
• Trade is a two-way street.
• In return for Bangladesh's textiles, the United States sends computer software and airplanes, products that would be difficult to produce on its own.
• The trade makes Bangladeshi consumers better off.

• The process of changing comparative advantage in China is the same as it was in the United States.
• China is moving out of low- skilled labor-intensive industries and into higher skilled ones as wages rise in comparison to other less developed countries.
• Chinese competition up the value chain provides more competition for U.S. college students going into the job market.

• The world economy has become more integrated, the pro pie, and Barbie and Ken's origins give us some insight into the modern U.S. economy and its relationship with other.
• Barbie and Ken are not produced in the United States in order to find the cheapest place to make them.
• Barbie came out in 1959

• There is global diversity in manufacturing and supply of Barbie and Ken.
• The box they of components are in is only a small part of the story of modern produc.
• Barbie and Ken are important to the manufactur that is actually made in five different countries, and it is this other half that explains each focusing on an aspect of production how the United States maintains its posi.

• China pro manufacturing can be found elsewhere.
• Much of what is normally considered does so by maintaining its control over manufacturing, factory spaces, labor, and the distribution and marketing of the energy for assembly, but it imports a lot.
• The oil for the plastic comes from Saudi Barbie or Ken, $12 can be accounted for by activities other than Arabia.
• Taiwan processes that oil into plastic pellets.
• The United States provides some of the raw materials that are used in merchandising and advertising.
• The manufacturing process provides the card United States and many of these activities are still done in board, packing, paint pigments, and the mold.

• Many goods today are a result of the different parts that go into the manufactur high living standard.

• There is more to be said about both trade and the gains from trade, and later chapters will explore trade in more detail.

• The economies of the world are highly integrated in a globalized world.
• There are two effects on firms from globalization.
• Because the world economy is larger than the domestic economy, the rewards for winning globally are larger than for winning domestically.
• It is much harder to win or stay in business in a global market.
• The global economy increases the ducer in a particular country yet may face foreign competitors that can undersell it.

• There are more competitors for the firm because of the global economy.
• Consider the industry of automobiles.

• The question is if it's fair that U.S. workers don't work in high-tech and creativity fields in China and India.

• The market doesn't directly take fairness into account, they are trying to entice top scientists and engineers.
• The market only cares about who can produce to stay in their country or return home if they have a good or service at the lowest cost.
• This means that you have been studying or working in the United States.
• The United States can maintain more than 50 percent of PhDs given in science if it has a competitive economy.
• The United States can't assume that it will keep the same amount of imports for exports as it did in the past.

• The United States has had a comparative advantage in the past when it comes to trade, but eventually forces will be set in motion that will allow developing countries to recognize that.

• U.S. automakers will not survive unless they meet foreign competition.

• The two effects are related.
• If you survive in a larger market, the rewards are greater.

• Globalization is simply another name for increased specialization.
• Companies can move operations to countries with comparative advan tage because of globalization.
• They lower the costs of production.
• Globalization leads to companies specializing in smaller portions of the production process because the potential market is not just one country but the world.

• In a global economy, production will shift to the lowest cost producer.
• Economists agree that it will.

• The United States has a comparative advantage in terms of labor costs, which makes it hard for people to think of goods with that advantage.
• The United States has advantages in technology, institutional structure, specialized types of knowledge, and entrepreneurial know-how.
• The U.S. has advantages that result in higher wages.

• Goods that require creativity and innovation have been excelled by the United States.
• The United States has remained the leader of the world economy and has kept a comparative advantage in many goods even with its high relative wages because of continual innovation.
• The United States is the location of so many technology firms because the Internet started there.
• The United States has been at the forefront of innovation.

• The United States will be able to specialize in goods that allow firms to pay higher wages if the U.S. production maintains a comparative advantage in innovation.

• There is reason to be concerned.
• If innovation and creativity don't develop new industries in which the United States has a comparative advantage fast enough, as the current dynamic industries mature and move to low-wage countries, the United States will not.
• Demand for goods and services from the U.S. will be higher than foreign demand.
• It has been the case for the last 20 years.
• To bring them into equilibrium, the U.S. wage premium will have to decline.
• Since nominal wages in the United States are not likely to fall, large increases in foreign wages will most likely occur.
• Either of these will make foreign products more expensive in the U.S. and cheaper in foreign countries.

• The Law of One Price is the best policy the United States can hope for, even though many Americans don't like it.
• If the United States tries to prevent outsourcing with trade restrictions.

• The United States will be in worse shape than if it had allowed outsourcing because U.S.-based companies will no longer be able to compete internationally.

• Competition and technology drive wages and prices of similar factors and goods toward equality.

• In a later chapter, we will discuss what an equal worker is and what an equivalent institutional country is.

• Since World War I, the United States has been able to avoid the law of one price in wages.
• The United States consumes more goods than it produces because foreigners want to increase their holdings of U.S. financial assets.
• The United States' institutional structure, technology, entrepreneurial labor force, and nonlabor inputs give it a strong comparative advan tages to offset the higher U.S. wage rates.
• The United States' comparative advantages have been eroded by the passage of time and modern techno logical changes.
• To maintain a balance in the comparative advantages of various countries, the wages of workers in other countries such as India and China will have to move closer to the wages of U.S. workers.

• For the past 20 years, manufacturing wages in the United States have been flat while Chinese wages have increased by double digits each year.
• The gap between Chinese and U.S. manufacturing wages has been reduced.
• Vietnam and Bangladesh have low-cost manufacturing competition.

• There is one final comment about globalization and the U.S. economy.
• There is a proposition that trade makes both countries better off.

• The discussion does not support the position taken by some opponents to trade and globalization that foreign competition is hurting the United States and that the United States can be made bet er off by imposing trade restrictions.
• The benefits of trade are the focus of the dis cussion.
• Many of the benefits of trade have already been consumed by the United States, which has been running trade deficits.
• The United States has been living better than it could have been because of trade.
• It has been living better because of trade and outsourcing.

• The United States will have to pay for some of the benefits that it already has when these IOUs are presented for payment.

• The production possibility curve model doesn't give an answer as to what government's role should be in regulating trade, but it does serve an important purpose.
• The idea of trade offs, opportunity costs, comparative advantage, efficiency, and how trade leads to 40 introduction # thinking like an economist is summarized in a geometric tool.
• These ideas are important to economists.

• The framework for those conversations is the production possibility curve.
• Think of the production as the tough choices society has to make and imagine the economy as being on it.

• Difficult trade-offs can be seen by the production possibility curve.

• Some people don't recognize the trade-offs.
• Politicians often talk about the production possibility curve not beingexistent.
• They obscure the hard choices and increase their chance of being elected.

• Economists point out that they do the opposite.
• They promise little except that life is tough, and seemingly free lunches often involve significant hidden costs.

• Political candidates who are reasonable tend to be elected.

• One can produce the greatest amount of goods mum combination of outputs that can be obtained with which to trade.
• A given number of inputs can be increased by doing so.

• In general, in order to get more and more of something, we must give up economies, cultures, and institutions across the something else.

• Because many goods are cheaper to produce in China and India, production that curve, trade allows people to use their comparative advan.

• The rise of markets coincides with a decline in output.
• The United States' strong comparative tion has contributed to the increase.

• If it does not, there will be some adjustments in the relative curve that are efficient.

• One has a comparative advantage if one specializes in producing goods for which it is cheapest to produce, because business's tendency to shift production to countries.

• If neither country has a comparative advantage.

• A rising trade-off as the grade in each 8 is demonstrated by a grade production possibility table and curve.
• Does the production possibility model tell us anything?

• In two hours, Just Born can make 30,000 Peeps or 90,000 Mike and Ikes.
• The United States and Japan have something in common.

• It is the law of one price.
• Is it related to the movement a.

• Thinking Like an Economist Questions from Alternative Perspectives 1.

• The text makes it seem like the goal is maximizing output.
• In what ways have vested interests used their power?

• Adam Smith was worried about not a.

• You are in this chapter.

• If the benefit of reducing the ineffi possibility curve is taken into account, inefficiency is at a point inside the production impossible.

• The secret of be eliminated by Groucho Marx.
• Success is honesty and fair dealing if people use economic reasoning.
• What would happen to society's possibility curve?

• A research shows that after school jobs are highly corre trial worker.
• The hourly cost to employers goes up when grade point averages go down.
• Those who work in the U.S. have an average cost per work of $39, while those who work in Taiwan have an average cost of $10.

• There are 21 hours or more that have a 2.7 grade point average.
• Higher grades are, a.
• There are three reasons why firms produce in Germany.

• Germany has an agreement with other EU countries part-time in college, and that the return to a 0.1 increase that allows people in any EU country, including in GPA, gives one a 10 percent increase in one's lifetime Greece and Italy.

• There is an argument for working rather than wage countries.

• In Taiwan, lawns occupy more land than crops.
• If you were the CEO of a company, you would want to know more about the United States than corn.

• Answers to Margin Questions 1.

• If no resource had a comparative advantage, the produc individuals are able to pick the best trades available to the possibility curve and the end result is that both parties to the trade the points of maximum production of each product.

• The figure below shows production possibility curves for Steve and Sarah.

• They can split up maximum production.
• This is an improvement for him since he will be able to see his original production possibility curve.

• The B production possibility curve is a point of inefficiency.

• They should be reminded of the importance of cultural forces.

• In Saudi Arabia, women's right to drive was limited.

• The country with the greatest amount of 5 will be the one that produces the good for which it has an advantage.
• The butter goods with which to trade will reap the greatest gains as the production possibility curve shifts.

• Globalization makes it possible for more trade and specialization.

• The lowest cost producer to produce each good is original production.

• If one country has a comparative ad and butter vantage in producing one set of goods, the other country has a comparative advantage in the production of the other set.
• There will be jobs needed to support this production.

• A picture is worth a lot.

• Graphish is usually written on graph paper.
• The picture isn't worth anything if the person doesn't know Graphish.
• Graphish can be babble in Figure A2-1(a).

• Each interval 10 was called in Figure A2-1(b).
• I sympathize with students who don't appear after 4 intervals of 1 because they don't understand Graphish.
• A number of my students get from left to right.
• The figure is thrown for a loop by graphs.
• They understand the idea, where each interval represents 10, to represent 5, but Graphish confuses them.

• It is a primer in Graphish.

• To show real-world data visually.
• I have the number line and 5 on the vertical line.

• The numbers are expressed in a way that is difficult to understand.
• Equal distances from one another for the exam.

• We can see over the two points on the graph, because they are on it.
• The num that costs less per unit is listed in Figure A2-2(a).

• Another way to present data is with graphs.

• When calculating a relationship between price and quantity, economists place price on the vertical axis and quantity on the horizontal axis.

• In Figure A2-2(c), I use graphs throughout the book.
• I interpolate the models with this line.

• Y goes down when X goes up.

• Y goes up when X goes up.

• Y goes up when X goes down.

• Y goes down when X goes down.

• We can measure slope through an example.
• We need to pick two points.

• As we move from 6 to 7 on the visual presentation, we see that.

• The slope is -4 divided by 1, or -4.

• The larger the numerical value of the left-hand side, the higher the curve starts and goes down to the right.

• The slope is zero when the curve is horizontal.

• The demon describes the pictures we see visually.
• If I say a curve has a slope of zero, you should picture quantity, that is, when the price of pens goes up, in your mind a flat line.

• The slope of the curve is constantly changing between the two variables.
• It can almost be seen as a good representation of the relationships they have, if that's good enough for mathematicians.

• Rise over run determines the slope of a curve.

• There are many other types of curves, the one point where the line touches the curve is +2.

• The relationship shown in the intercept rises from 8 to 12 while the slope graphs use equations.
• Material algebra is the same since I present it.
• The discuss how to translate a linear curve into an equation.

• The change is graphically shown in Figure A2-5(b).

• Plug in the values along the horizontal axis to the new orange line if you want to write the original blue line.

• It's best to intercept the axis and the slope.
• If the intercept chooses variables that correspond to $4,000, the curve will shift up to the orange ing on 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110

• The equation is true at any point along the line.

• A movement along a curve does not show models that focus on change the relationship of the variables, rather it shows hypothetical relationships.
• Economists use graphs to show how a change in one variable affects another.

• Sometimes you want to show how exports have changed over time.
• The curve can either shift, change slope, or both shift time.

• There are other types of graphs, but they're all different.
• You have a number of charts on line and bar graphs.

• The amount is divided into intervals.
• If you look closely, you'll see that the curves in both graphs represent the same test I gave.
• 5 percent of the students got A's.

• It's important to understand the markings on the axes.
• Can you see the graph?

• The data of economics is presented in graphs and tables.

• Most economists think of math when they think of years.
• The kind of stuff learned in fifth, sixth, and seventh grades is what makes the mistakes.

• Questions about U.S. domestic oil production will be on exams.

• If you haven't answered the questions already, please do so now.

• Refer to the table below to find the true rect answers.

• This appendix can be used to stop economic growth in Poland.
• If you missed the Percent Increase in GDP, 1990-1994, read the explanations carefully.

• You divide the percentage times the number by 3.5.

• 25 percent of 400 is 100.

• GDP in Poland was larger in 1994 than it was in 1993.

• The GDP in Poland was larger in 1993 than it was in 1994.

• The number given to you is percentage changes, and the question is about what we've covered.

• The level is increasing if the percentage change is positive.
• A graph is a picture of points on a coordinate 1994 that is 3.5 percent larger than 1993, even though the percentage change is smaller than in between numbers.

• The level is falling if the percentage change is negative.
• Income fell in a relationship.

• The level of income in 1992 is greater than in 1991.

• The amount of the rise, 40, is sured by the rise over the run of a line, 60, to calculate the percentage change.
• We get 40/60 if we do that.

• It is 66.67 percent.

• Now that I've given you the answers, I think the linear curve is zero.

• Since they are the building blocks of horizontal axes, be a bit slower in stand what is being measured on the vertical and drawing inferences.

• Graph the costs per unit and answer the questions.
• The following tions are related to the following curve.

• The graphs that correspond to the equations are drawn.
• Is the relationship between cost and output?

• The curve goes up by 500.

• Within a coordinate space, draw a line.
• Tell me what type of graph or chart you want to show.