Friday, October 23, 2015

Suppose after graduating from college you get a job working at a bank earning $30,000 per year. After two years of working at the bank earning the same salary

The word “economy” comes from the Greek word oikonomos, which means
“one who manages a household”

Economics is defined as the study of
how society manages its scarce resources

Economics deals primarily with the concept of:
scarcity

Scarcity exists when
there is less of a good or resource available than people wish to have

In most societies, resources are allocated by
the combined actions of millions of households and firms

The adage, “There is no such thing as a free lunch,” is used to illustrate the principle that
people face tradeoffs

When the government implements welfare programs, which of the following is likely to occur?
equity is increased and efficiency is decreased
The opportunity cost of an item is
what you give up to get that item

Suppose after graduating from college you get a job working at a bank earning $30,000 per year. After two years of working at the bank earning the same salary, you have an opportunity to enroll in a one-year graduate program that would require you to quit your job at the bank. Which of the following should not be included in a calculation of your graduate program cost?
the $45,000 salary that you will be able to earn after having completed the program

A marginal change is a
small, incremental change

A construction company has built 50 houses so far this year at a total cost to the company of $8 million. If the company builds a 51st house, its total cost will increase to $8.18 million. Which of the following statements is correct?
all of the above

According to Adam Smith, the success of decentralized market economies is primarily due to
individuals’ pursuit of self-interest

The term “market failure” refers to
a situation in which the market on its own fails to allocate resources efficiently

Market failure can be cause by
externalities and market power

The fact that different countries experience different standards of living is largely explained by differences in those countries’
productivity levels

To raise productivity, policymakers could
all of the above

Large or persistent inflation is almost always caused by
government printing too much money

The business cycle is the
irregular fluctuations in economic activity

Economists make assumptions
to make the world easier to understand

Just like models constructed in other areas of science, economic models
incorporate assumption that may contradict reality

The circular-flow diagram is a
visual model of how the economy is organized

The two loops in the circular-flow diagram represent the flow of
inputs and outputs and the flow of dollars

The production possibilities frontier is a
graph that shows the various combinations of output the economy can possibly produce given the available resources and technology

If a nation has an absolute advantage in the production of a good,
it can produce that good using fewer resources then its trading partner.

According to the principle of comparative advantage,
countries should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners

Macro. Chapter 23 【Six Debates Over Macroeconomic Policy】

1.



2.



3.




4.





5.



6.

Thursday, October 22, 2015

Macro. Chapter 22 【The Short-Run Trade-off between Inflation and Unemployment】

Chapter 22 Warning: There might be another versions but sorry I don't have time to do it.

1. Aggregate demand, aggregate supply, and the Phillips curve
In the year 2020, aggregate demand and aggregate supply in the fictional country of Bartak are represented by the curves


2. The Phillips curve in the short run and long run


3. The long-run effects of monetary policy


4. Monetary policy and the Phillips curve




5. The Phillips curve in the late 20th century


6. Expectations and the Phillips curve




7. The costs of disinflation

Wednesday, October 21, 2015

How the debt ceiling issue will hit ordinary americans in the wallet

1. Background information


2. Calculating the debt to GDP ratio


3. Interest on debt

Macro. Chapter 21 【The Influence of Monetary and Fiscal Policy on Aggregate Demand】

1. The opportunity cost of holding assets as money


2. The theory of liquidity preference and the downward-slopingaggregate demand curve 
Please Identify your case (Decrease or Increase) First



3. Changes in the money supply
Please Identify your case (Decrease or Increase) First



4. The multiplier effect of a change in government purchases
Please Identify your case (Decrease or Increase) First



5. Fiscal policy, the money market, and aggregate demand



6. Changes in taxes


7. Use of discretionary policy to stabilize the economy


8. Using policy to stabilize the economy

Tuesday, October 20, 2015

Macro. Chapter 20 【Aggregate Demand and Aggregate Supply】

1. Key facts about economic fluctuations


2. Explaining short-run economic fluctuations


3. Why the aggregate demand curve slopes downward


4. Determinants of aggregate demand


5. The slope and position of the long-run aggregate supply curve


6. Why the aggregate supply curve slopes upward in the short run


7. Determinants of aggregate supply


8. Economic fluctuations I
Two Case: Increase, Decrease



9. Economic fluctuations II

Sunday, October 18, 2015

Macro. News Analysis - Hung-Up on Hanger Tariffs

1. Background information



2. The impact of a tariff

Macro. Chapter 18 【Open-Economy Macroeconomics: Basic Concepts】

1. Imports, exports, and the trade balance


2. Accounting for trade in goods and services


3. Factors that influence international trade


4. Net capital outflow and net exports


5. Saving and net flows of capital and goods


6. Pricing foreign goods


7. Computing real exchange rates


8. Purchasing power parity