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principle of economics final exam - Coggle Diagram
principle of economics final exam
4.Market force
Market
demad
quantity demanded
demand curve
type of good
normal good
inferior good
substitutes
complements
Variable
P,I,R,T,E,N
Supply
quantity supply
shift
I T E N
Equilibrium
surplus
shortage
5.Elasticity
Demad
element effects elastic
substitutes
Luxuries Necessities
definition of the market
Time horizon
computing
midpoint method
not a slope
degree of elasticity
Income E
0
inferior good
normal good
degree
necessities
Luxuires
cross-price elasticity
complemnt
substitutes
Total revenue
E>1
P⇧ TR⇩
E=1
P⇧ TR-
E<1
P⇧ TR⇧
Supply
Application
6.Government policies
price ceiling
maximum
shortage
price floor
minimum
surplus
tax
taxburden
more elastic - less burden
7.Surplus
Consumer surplus
Ps=Pd-Pe
producer Surplus
Market Efficiency
8.Cost of Taxation
Deadweight loss
Tax revenue & deadweight loss
more elastic , more deadweight loss
laffer curve
loss business
9.International trade
determinant
Winner Loser
domestic price < world price
export
domestic price > world price
import
tariff
deadwweight loss
protect nation's business
18.Markets for the factor
Demand for Labor
marginal product of labor
diminishing marginal product
Supply of labor
Equilibrium
21.Consumer choice
Optimization
MRS=△Budget
Change Income
normal good
inferior good
Change price
income effect
substitutes effect
Budget constraint
indifference curve
MRS
marginal rate of substitutes
4 properties
prefer higher curve
do not cross
downward slope
bowed inward
special case
perfect complement
perfect substitutes
demand curve
giffen good
23.Nation's Income
Components of GDP
Y=C+I+G+NX
C
capital goods
G
transfer payments
Nx
export-import
Import - C, G I
definition of GDP
Market Value
of ALL
illicitly
Final
final good/intermediate good
Goods and Services
tangible/ intangible
produced
used car
within a Country
geographic
In a Given Period of time
quarter / year
Calculate
nominal GDP
Real GDP
base year
GDP deflator
(Nominal/Real)*100
inflation rate in year2
((GDP deflator 2 - GDP deflator 1)/GDP deflator1)*100
two aspect
total expenditure
total income
24.Cost of living
CPI
calculate
fix basket
find price of each year
calculate the basket
compute CPI
Inflation rate
(CPI2-CPI1)/CPI1
problems
1.substitution bias
2.introduction of new goods.
3.unmeasured quality change
vs GDP deflator
1.bought by the consumer -produced domestically
subtler difference between the GDP deflator
Dollar
today's dollar=Amount of T dollars*(P(today)/P(T year))
Interest rate
Real interest rate= Nominal interest rate - Inflation rate
28.unemployment
natural rate of unemployment
Calculate
category
labor force
unemployment
employment
Not in Labor force
unemployment rate
labor-force participation rate
How long
Short-time
long-time
frictional unemployment
sectoral shifts
goverment policy
job search
unemployment insurance
structural unemployment
minimun wage
union
efficiency wages
problem
discouraged worker
cyclical unemployment