This document summarizes 10 key principles of economics from a textbook. It discusses principles related to how individuals make decisions, how people interact in markets, and how the overall economy works. The principles include: people face tradeoffs; costs are what you give up; rational people think at the margin; people respond to incentives; trade can make all parties better off; markets are usually a good way to organize activity; governments can improve market outcomes; a country's standard of living depends on productivity; and inflation reduces purchasing power over time. The document uses examples and diagrams to explain each principle in 2-4 paragraphs.
This document outlines ten principles of economics from an economics textbook. It discusses the principles in three categories: how people make decisions, how people interact, and how the overall economy works. Some of the key principles covered are that people face tradeoffs, the cost of something is what you give up to get it, markets are generally a good way to organize economic activity, and a country's standard of living depends on its productivity.
This chapter introduces some of the key principles of economics. It discusses that economics addresses questions about how societies manage scarce resources. It explores four main principles: how people make decisions, how people interact, how markets usually provide a good way to organize economic activity, and how governments can sometimes improve market outcomes. The chapter provides examples and discussion of opportunity costs, incentives, trade, and the role of prices in allocating resources. It also addresses how a country's standard of living depends on its ability to produce goods and services.
This chapter introduces the key principles of economics. It discusses that economics addresses how societies manage scarce resources through decisions made by individuals and firms. The chapter outlines the principles of how people make decisions, how people interact through markets and trade, and how the overall economy functions. The principles covered are: people face tradeoffs; opportunity cost is the relevant cost; rational people think at the margin; people respond to incentives; trade can make all parties better off; markets are generally efficient but governments can address market failures; productivity drives living standards; inflation is caused by too much money printing; and societies face a short-run tradeoff between inflation and unemployment.
This document outlines 10 principles of economics according to a textbook. It discusses principles related to how people make decisions, how people interact through markets and trade, and how the overall economy functions. Some of the key principles covered are that people face tradeoffs, rational people think at the margin when making choices, and markets are generally effective at organizing economic activity but governments may intervene to address market failures or inequities. Productivity is the main driver of national living standards and excess money growth causes long-run inflation.
This document outlines 10 principles of economics according to a textbook. It discusses principles related to how people make decisions, how people interact through markets and trade, and how the overall economy functions. Some of the key principles covered are that people face tradeoffs, rational people think at the margin, markets are generally an efficient way to organize economic activity, inflation is usually caused by too much money printing, and there is a short-run tradeoff between inflation and unemployment. The document provides examples and explanations for each principle.
The document outlines 10 principles of economics across 3 categories - how people make decisions, how people interact, and how the economy as a whole works. The key principles are that people face tradeoffs, respond rationally to incentives, can benefit from specialization and trade, and markets are generally effective but sometimes require government intervention to address externalities or market failures. Productivity is the ultimate source of living standards, inflation is ultimately caused by excessive money growth, and there is a short-run tradeoff between inflation and unemployment.
This document outlines ten principles of economics according to N. Gregory Mankiw. It discusses how people make decisions by facing tradeoffs and considering opportunity costs. Rational people make decisions at the margin by weighing marginal costs against marginal benefits. Markets are generally an efficient way to organize economic activity as decentralized decisions lead to beneficial outcomes through the invisible hand of supply and demand.
This document outlines 10 principles of economics from the textbook "Principles of Economics" by N. Gregory Mankiw. It discusses fundamental lessons about individual decision making, interactions among people, and the economy as a whole. Specifically, it summarizes that people face trade-offs and respond to incentives; markets are generally good but governments can remedy failures; productivity drives living standards; and inflation results from increasing the money supply, creating short-run trade-offs with unemployment.
This document outlines ten principles of economics from an economics textbook. It discusses the principles in three categories: how people make decisions, how people interact, and how the overall economy works. Some of the key principles covered are that people face tradeoffs, the cost of something is what you give up to get it, markets are generally a good way to organize economic activity, and a country's standard of living depends on its productivity.
This chapter introduces some of the key principles of economics. It discusses that economics addresses questions about how societies manage scarce resources. It explores four main principles: how people make decisions, how people interact, how markets usually provide a good way to organize economic activity, and how governments can sometimes improve market outcomes. The chapter provides examples and discussion of opportunity costs, incentives, trade, and the role of prices in allocating resources. It also addresses how a country's standard of living depends on its ability to produce goods and services.
This chapter introduces the key principles of economics. It discusses that economics addresses how societies manage scarce resources through decisions made by individuals and firms. The chapter outlines the principles of how people make decisions, how people interact through markets and trade, and how the overall economy functions. The principles covered are: people face tradeoffs; opportunity cost is the relevant cost; rational people think at the margin; people respond to incentives; trade can make all parties better off; markets are generally efficient but governments can address market failures; productivity drives living standards; inflation is caused by too much money printing; and societies face a short-run tradeoff between inflation and unemployment.
This document outlines 10 principles of economics according to a textbook. It discusses principles related to how people make decisions, how people interact through markets and trade, and how the overall economy functions. Some of the key principles covered are that people face tradeoffs, rational people think at the margin when making choices, and markets are generally effective at organizing economic activity but governments may intervene to address market failures or inequities. Productivity is the main driver of national living standards and excess money growth causes long-run inflation.
This document outlines 10 principles of economics according to a textbook. It discusses principles related to how people make decisions, how people interact through markets and trade, and how the overall economy functions. Some of the key principles covered are that people face tradeoffs, rational people think at the margin, markets are generally an efficient way to organize economic activity, inflation is usually caused by too much money printing, and there is a short-run tradeoff between inflation and unemployment. The document provides examples and explanations for each principle.
The document outlines 10 principles of economics across 3 categories - how people make decisions, how people interact, and how the economy as a whole works. The key principles are that people face tradeoffs, respond rationally to incentives, can benefit from specialization and trade, and markets are generally effective but sometimes require government intervention to address externalities or market failures. Productivity is the ultimate source of living standards, inflation is ultimately caused by excessive money growth, and there is a short-run tradeoff between inflation and unemployment.
This document outlines ten principles of economics according to N. Gregory Mankiw. It discusses how people make decisions by facing tradeoffs and considering opportunity costs. Rational people make decisions at the margin by weighing marginal costs against marginal benefits. Markets are generally an efficient way to organize economic activity as decentralized decisions lead to beneficial outcomes through the invisible hand of supply and demand.
This document outlines 10 principles of economics from the textbook "Principles of Economics" by N. Gregory Mankiw. It discusses fundamental lessons about individual decision making, interactions among people, and the economy as a whole. Specifically, it summarizes that people face trade-offs and respond to incentives; markets are generally good but governments can remedy failures; productivity drives living standards; and inflation results from increasing the money supply, creating short-run trade-offs with unemployment.
The document provides an introduction to applied economics. It discusses 10 key principles:
1) Economics studies how societies manage scarce resources. Microeconomics examines household and firm decisions, while macroeconomics looks at economy-wide issues.
2) People face tradeoffs in decision making that involve weighing costs and benefits at the margin. Governments also face an efficiency versus equality tradeoff.
3) Markets are usually a good way to organize economic activity, but governments can sometimes improve outcomes during market failures or to promote equity.
This document outlines 10 principles of economics according to an MBA student. It discusses concepts like tradeoffs, opportunity costs, incentives, markets, production, money supply, and the relationship between inflation and unemployment. Each principle is explained over 1-2 paragraphs and includes a real-world example. The document is a study guide for microeconomics that defines and illustrates key economic theories and how they apply to individuals, businesses, governments, and countries.
This document outlines key concepts from an economics textbook chapter, including:
- Economics addresses how societies manage scarce resources.
- Scarcity and opportunity costs are fundamental concepts.
- Rational people systematically evaluate costs and benefits of decisions at the margin.
- Trade can make all parties better off through specialization and exchange.
- Markets generally organize economic activity well through prices reflecting supply and demand.
- Governments sometimes improve outcomes by addressing market failures or pursuing equity.
This document outlines 10 principles of economics:
1) People face tradeoffs when making decisions that require choosing one goal over another.
2) The cost of something is measured by what one gives up to obtain it, known as opportunity cost.
3) Rational people make decisions by comparing marginal costs and benefits of small incremental changes.
4) Markets are usually a good way to organize economic activity as they allow for specialization and gains from trade, but governments can intervene to address market failures or inequities.
5) A country's standard of living depends on its level of productivity and production.
The document provides an overview of key economic concepts including:
1) Economics is the study of how society manages its scarce resources based on needs and wants. People face tradeoffs when making decisions.
2) Rational individuals make decisions by weighing marginal costs against marginal benefits. They respond to incentives in their choices.
3) Markets are generally efficient at allocating resources, though governments sometimes intervene to address market failures or inequities. Productivity determines living standards while inflation stems from too much money growth. Societies experience short-run tradeoffs between inflation and unemployment.
This document outlines 10 principles of economics according to an economics textbook. It discusses how individuals and societies face tradeoffs in managing scarce resources, and how rational decision making involves weighing costs and benefits at the margin. Markets are generally effective at organizing economic activity, but governments sometimes need to intervene to address market failures or inequities. A nation's standard of living ultimately depends on its productivity, and excess money creation by the government can lead to inflation, which trades off against unemployment in the short run according to the Phillips curve.
This document introduces the ten principles of economics according to Gregory Mankiw's economics textbook. It explains that economics studies how societies manage scarce resources and that individuals and societies face tradeoffs in their decision making. It discusses how rational people consider costs and benefits at the margin when making choices and how incentives influence behavior. Trade, markets, and government intervention are reviewed as mechanisms for organizing economic activity. Productivity, money supply, and inflation are linked to standards of living and unemployment rates.
This document introduces the ten principles of economics according to Gregory Mankiw's economics textbook. It explains that economics studies how societies manage scarce resources and that individuals and societies face tradeoffs in making decisions. It discusses how rational people consider costs and benefits at the margin when deciding how to allocate resources. Markets are generally efficient but governments sometimes need to intervene to correct market failures or inequities. A nation's standard of living depends on its productivity, and inflation is often caused by increases in the money supply.
Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand.”
Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions.
As a result, prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole.
Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand.”
Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions.
As a result, prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole.
Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand.”
Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions.
As a result, prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole.
Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand.”
Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions.
As a result, prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole.
The document outlines 10 principles of economics: 1) People face tradeoffs when making decisions; 2) The cost of something is what you give up to get it; 3) Rational people think at the margin by comparing marginal costs and benefits; 4) People respond to incentives. Trade can make everyone better off and markets are generally a good way to organize economic activity, though governments can improve outcomes during market failures. A country's productivity determines its standard of living. Inflation results from too much money printing by the government, and there is a short-run tradeoff between inflation and unemployment.
Gregory Mankiw in his Principles of Economics outlines Ten Principles of Economics that will replicate here, they are:
*People face trade-offs
*The cost of something is what you give up to get it
*Rational people think at the margin
*People respond to incentives
*Trade can make everyone better off
*Markets are usually a good way to organize economic activity
*Governments can sometimes improve market outcomes
*A country's standard of living depends on its ability to produce goods and services
*Prices rise when the government prints too much money
*Society faces a short-run tradeoff between Inflation and unemployment.
ten principles of economics, basics of economics,economicsRAHUL SINHA
short notes on chapter 1 of economics book by mankiw
topics covered
What is economics?
HOW PEOPLE MAKE DECISIONS
HOW PEOPLE INTERACT
HOW THE ECONOMY AS A WHOLE WORKS
The document outlines 10 principles of economics:
1. People face tradeoffs in decision making as resources are scarce.
2. The cost of something is measured by what one gives up to obtain it, including opportunity costs.
3. Rational people think at the margin, weighing marginal costs against marginal benefits.
1. This chapter introduces the basic principles of economics, including principles of individual choice, how choices interact, and economy-wide interactions. It establishes that economics analyzes choices must be made because resources are scarce.
2. Key concepts introduced are opportunity costs, marginal analysis for decision making, incentives, gains from trade through specialization, markets moving toward equilibrium, and situations where government intervention may be needed to improve efficiency.
3. The chapter lays out a framework of microeconomic and macroeconomic analysis based on these foundational principles.
1. The document outlines 10 principles of economics, organized into three categories: how people make decisions, how people interact, and how the economy as a whole works.
2. It provides explanations and examples for each principle, discussing concepts like trade-offs, incentives, markets, productivity, and inflation.
3. The principles are presented as fundamental ideas that provide a framework for understanding economic behavior at both the individual and aggregate level.
An economiststudies the relationship between a society's resources and its pr...pritinaskar341
An economiststudies the relationship between a society's resources and its production or output, and their opinions help shape economic policies related to interest rates, tax laws, employment programs, international trade agreements, and corporate strategie
This document summarizes the ten principles of economics according to the textbook "Principles of Economics, Third Edition" by N. Gregory Mankiw. It discusses key economic concepts like scarcity, tradeoffs, costs, incentives, markets, and macroeconomic ideas like inflation and unemployment. The summary focuses on providing a high-level overview of the main topics and ideas covered in the reading.
This document summarizes 10 principles of economics according to a textbook. It outlines principles of personal decision making, economic interaction, and the economy as a whole. The key principles are that people face trade-offs, respond to incentives, markets generally work well but governments can improve outcomes, and inflation and unemployment are linked in the short-run.
The document provides an introduction to applied economics. It discusses 10 key principles:
1) Economics studies how societies manage scarce resources. Microeconomics examines household and firm decisions, while macroeconomics looks at economy-wide issues.
2) People face tradeoffs in decision making that involve weighing costs and benefits at the margin. Governments also face an efficiency versus equality tradeoff.
3) Markets are usually a good way to organize economic activity, but governments can sometimes improve outcomes during market failures or to promote equity.
This document outlines 10 principles of economics according to an MBA student. It discusses concepts like tradeoffs, opportunity costs, incentives, markets, production, money supply, and the relationship between inflation and unemployment. Each principle is explained over 1-2 paragraphs and includes a real-world example. The document is a study guide for microeconomics that defines and illustrates key economic theories and how they apply to individuals, businesses, governments, and countries.
This document outlines key concepts from an economics textbook chapter, including:
- Economics addresses how societies manage scarce resources.
- Scarcity and opportunity costs are fundamental concepts.
- Rational people systematically evaluate costs and benefits of decisions at the margin.
- Trade can make all parties better off through specialization and exchange.
- Markets generally organize economic activity well through prices reflecting supply and demand.
- Governments sometimes improve outcomes by addressing market failures or pursuing equity.
This document outlines 10 principles of economics:
1) People face tradeoffs when making decisions that require choosing one goal over another.
2) The cost of something is measured by what one gives up to obtain it, known as opportunity cost.
3) Rational people make decisions by comparing marginal costs and benefits of small incremental changes.
4) Markets are usually a good way to organize economic activity as they allow for specialization and gains from trade, but governments can intervene to address market failures or inequities.
5) A country's standard of living depends on its level of productivity and production.
The document provides an overview of key economic concepts including:
1) Economics is the study of how society manages its scarce resources based on needs and wants. People face tradeoffs when making decisions.
2) Rational individuals make decisions by weighing marginal costs against marginal benefits. They respond to incentives in their choices.
3) Markets are generally efficient at allocating resources, though governments sometimes intervene to address market failures or inequities. Productivity determines living standards while inflation stems from too much money growth. Societies experience short-run tradeoffs between inflation and unemployment.
This document outlines 10 principles of economics according to an economics textbook. It discusses how individuals and societies face tradeoffs in managing scarce resources, and how rational decision making involves weighing costs and benefits at the margin. Markets are generally effective at organizing economic activity, but governments sometimes need to intervene to address market failures or inequities. A nation's standard of living ultimately depends on its productivity, and excess money creation by the government can lead to inflation, which trades off against unemployment in the short run according to the Phillips curve.
This document introduces the ten principles of economics according to Gregory Mankiw's economics textbook. It explains that economics studies how societies manage scarce resources and that individuals and societies face tradeoffs in their decision making. It discusses how rational people consider costs and benefits at the margin when making choices and how incentives influence behavior. Trade, markets, and government intervention are reviewed as mechanisms for organizing economic activity. Productivity, money supply, and inflation are linked to standards of living and unemployment rates.
This document introduces the ten principles of economics according to Gregory Mankiw's economics textbook. It explains that economics studies how societies manage scarce resources and that individuals and societies face tradeoffs in making decisions. It discusses how rational people consider costs and benefits at the margin when deciding how to allocate resources. Markets are generally efficient but governments sometimes need to intervene to correct market failures or inequities. A nation's standard of living depends on its productivity, and inflation is often caused by increases in the money supply.
Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand.”
Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions.
As a result, prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole.
Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand.”
Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions.
As a result, prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole.
Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand.”
Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions.
As a result, prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole.
Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand.”
Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the social costs of their actions.
As a result, prices guide decision makers to reach outcomes that tend to maximize the welfare of society as a whole.
The document outlines 10 principles of economics: 1) People face tradeoffs when making decisions; 2) The cost of something is what you give up to get it; 3) Rational people think at the margin by comparing marginal costs and benefits; 4) People respond to incentives. Trade can make everyone better off and markets are generally a good way to organize economic activity, though governments can improve outcomes during market failures. A country's productivity determines its standard of living. Inflation results from too much money printing by the government, and there is a short-run tradeoff between inflation and unemployment.
Gregory Mankiw in his Principles of Economics outlines Ten Principles of Economics that will replicate here, they are:
*People face trade-offs
*The cost of something is what you give up to get it
*Rational people think at the margin
*People respond to incentives
*Trade can make everyone better off
*Markets are usually a good way to organize economic activity
*Governments can sometimes improve market outcomes
*A country's standard of living depends on its ability to produce goods and services
*Prices rise when the government prints too much money
*Society faces a short-run tradeoff between Inflation and unemployment.
ten principles of economics, basics of economics,economicsRAHUL SINHA
short notes on chapter 1 of economics book by mankiw
topics covered
What is economics?
HOW PEOPLE MAKE DECISIONS
HOW PEOPLE INTERACT
HOW THE ECONOMY AS A WHOLE WORKS
The document outlines 10 principles of economics:
1. People face tradeoffs in decision making as resources are scarce.
2. The cost of something is measured by what one gives up to obtain it, including opportunity costs.
3. Rational people think at the margin, weighing marginal costs against marginal benefits.
1. This chapter introduces the basic principles of economics, including principles of individual choice, how choices interact, and economy-wide interactions. It establishes that economics analyzes choices must be made because resources are scarce.
2. Key concepts introduced are opportunity costs, marginal analysis for decision making, incentives, gains from trade through specialization, markets moving toward equilibrium, and situations where government intervention may be needed to improve efficiency.
3. The chapter lays out a framework of microeconomic and macroeconomic analysis based on these foundational principles.
1. The document outlines 10 principles of economics, organized into three categories: how people make decisions, how people interact, and how the economy as a whole works.
2. It provides explanations and examples for each principle, discussing concepts like trade-offs, incentives, markets, productivity, and inflation.
3. The principles are presented as fundamental ideas that provide a framework for understanding economic behavior at both the individual and aggregate level.
An economiststudies the relationship between a society's resources and its pr...pritinaskar341
An economiststudies the relationship between a society's resources and its production or output, and their opinions help shape economic policies related to interest rates, tax laws, employment programs, international trade agreements, and corporate strategie
This document summarizes the ten principles of economics according to the textbook "Principles of Economics, Third Edition" by N. Gregory Mankiw. It discusses key economic concepts like scarcity, tradeoffs, costs, incentives, markets, and macroeconomic ideas like inflation and unemployment. The summary focuses on providing a high-level overview of the main topics and ideas covered in the reading.
This document summarizes 10 principles of economics according to a textbook. It outlines principles of personal decision making, economic interaction, and the economy as a whole. The key principles are that people face trade-offs, respond to incentives, markets generally work well but governments can improve outcomes, and inflation and unemployment are linked in the short-run.
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
Confirmation of Payee (CoP) is a vital security measure adopted by financial institutions and payment service providers. Its core purpose is to confirm that the recipient’s name matches the information provided by the sender during a banking transaction, ensuring that funds are transferred to the correct payment account.
Confirmation of Payee was built to tackle the increasing numbers of APP Fraud and in the landscape of UK banking, the spectre of APP fraud looms large. In 2022, over £1.2 billion was stolen by fraudsters through authorised and unauthorised fraud, equivalent to more than £2,300 every minute. This statistic emphasises the urgent need for robust security measures like CoP. While over £1.2 billion was stolen through fraud in 2022, there was an eight per cent reduction compared to 2021 which highlights the positive outcomes obtained from the implementation of Confirmation of Payee. The number of fraud cases across the UK also decreased by four per cent to nearly three million cases during the same period; latest statistics from UK Finance.
In essence, Confirmation of Payee plays a pivotal role in digital banking, guaranteeing the flawless execution of banking transactions. It stands as a guardian against fraud and misallocation, demonstrating the commitment of financial institutions to safeguard their clients’ assets. The next time you engage in a banking transaction, remember the invaluable role of CoP in ensuring the security of your financial interests.
For more details, you can visit https://technoxander.com.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
Suzanne Spiteri’s recent report on improving the quality and accessibility of job postings to reduce employment barriers for neurodivergent people.
Decoding job postings: Improving accessibility for neurodivergent job seekers
Improving the quality and accessibility of job postings is one way to reduce employment barriers for neurodivergent people.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
2. 1
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
In this chapter, look for the answers to
these questions:
▪ What kinds of questions does economics
address?
▪ What are the principles of how people make
decisions?
▪ What are the principles of how people interact?
▪ What are the principles of how the economy as a
whole works?
3. 2
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
What Economics Is All About
▪ Scarcity refers to the limited nature of society’s
resources.
▪ Economics is the study of how society manages
its scarce resources, including
• how people decide how much to work, save,
and spend, and what to buy
• how firms decide how much to produce,
how many workers to hire
• how society decides how to divide its resources
between national defense, consumer goods,
protecting the environment, and other needs
4. 3
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE MAKE DECISIONS
▪ Decision making is
at the heart of
economics.
▪ The first four
principles deal with
how people make
decisions.
5. 4
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE MAKE DECISIONS
All decisions involve tradeoffs. Examples:
▪ Going to a party the night before your midterm
leaves less time for studying.
▪ Having more money to buy stuff requires working
longer hours, which leaves less time for leisure.
▪ Protecting the environment requires resources
that might otherwise be used to produce
consumer goods.
Principle #1: People Face Tradeoffs
6. 5
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE MAKE DECISIONS
▪ Society faces an important tradeoff:
efficiency vs. equity
▪ efficiency: getting the most out of scarce
resources
▪ equity: distributing prosperity fairly among
society’s members
▪ Tradeoff: To increase equity, can redistribute
income from the well-off to the poor.
But this reduces the incentive to work and produce,
and shrinks the size of the economic “pie.”
Principle #1: People Face Tradeoffs
7. 6
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE MAKE DECISIONS
▪ Making decisions requires comparing the costs
and benefits of alternative choices.
▪ The opportunity cost of any item is whatever
must be given up to obtain it.
▪ It is the relevant cost for decision making.
Principle #2: The Cost of Something Is What
You Give Up to Get It
8. 7
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE MAKE DECISIONS
Examples:
The opportunity cost of…
…going to college for a year is not just the tuition,
books, and fees, but also the foregone wages.
…seeing a movie is not just the price of the ticket,
but the value of the time you spend in the theater.
Principle #2: The Cost of Something Is What
You Give Up to Get It
9. 8
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE MAKE DECISIONS
▪ A person is rational if she systematically and
purposefully does the best she can to achieve
her objectives.
▪ Many decisions are not “all or nothing,”
but involve marginal changes – incremental
adjustments to an existing plan.
▪ Evaluating the costs and benefits of marginal
changes is an important part of decision making.
Principle #3: Rational People Think at the
Margin
10. 9
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE MAKE DECISIONS
Examples:
▪ A student considers whether to go to college
for an additional year, comparing the fees &
foregone wages to the extra income he could
earn with an extra year of education.
▪ A firm considers whether to increase output,
comparing the cost of the needed labor and
materials to the extra revenue.
Principle #3: Rational People Think at the
Margin
11. 10
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE MAKE DECISIONS
▪ incentive: something that induces a person to
act, i.e. the prospect of a reward or punishment.
▪ Rational people respond to incentives because
they make decisions by comparing costs and
benefits. Examples:
• In response to higher gas prices,
sales of “hybrid” cars (e.g., Toyota Prius) rise.
• In response to higher cigarette taxes,
teen smoking falls.
Principle #4: People Respond to Incentives
12. A C T I V E L E A R N I N G 1:
Exercise
You are selling your 1996 Mustang. You have
already spent $1000 on repairs.
At the last minute, the transmission dies. You can
pay $600 to have it repaired, or sell the car “as is.”
In each of the following scenarios, should you have
the transmission repaired?
A. Blue book value is $6500 if transmission works,
$5700 if it doesn’t
B. Blue book value is $6000 if transmission works,
$5500 if it doesn’t
11
13. A C T I V E L E A R N I N G 1:
Answers
Cost of fixing transmission = $600
A. Blue book value is $6500 if transmission works,
$5700 if it doesn’t
Benefit of fixing the transmission = $800
($6500 – 5700).
It’s worthwhile to have the transmission fixed.
B. Blue book value is $6000 if transmission works,
$5500 if it doesn’t
Benefit of fixing the transmission is only $500.
Paying $600 to fix transmission is not worthwhile.
12
14. A C T I V E L E A R N I N G 1:
Answers
Observations:
▪ The $1000 you previously spent on repairs is
irrelevant. What matters is the cost and benefit
of the marginal repair (the transmission).
▪ The change in incentives from scenario A
to scenario B caused your decision to change.
13
15. 14
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE INTERACT
▪ An “economy” is just
a group of people
interacting with
each other.
▪ The next
three principles
deal with how people
interact.
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CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE INTERACT
▪ Rather than being self-sufficient, people can
specialize in producing one good or service
and exchange it for other goods.
▪ Countries also benefit from trade & specialization:
• get a better price abroad for goods they
produce
• buy other goods more cheaply from abroad
than could be produced at home
Principle #5: Trade Can Make Everyone Better
Off
17. 16
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE INTERACT
▪ A market is a group of buyers and sellers.
(They need not be in a single location.)
▪ “Organize economic activity” means determining
• what goods to produce
• how to produce them
• how much of each to produce
• who gets them
Principle #6: Markets Are Usually A Good Way
to Organize Economic Activity
18. 17
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE INTERACT
▪ In a market economy, these decisions result from
the interactions of many households and firms.
▪ Famous insight by Adam Smith in
The Wealth of Nations (1776):
Each of these households and firms
acts as if “led by an invisible hand”
to promote general economic well-being.
Principle #6: Markets Are Usually A Good Way
to Organize Economic Activity
19. 18
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE INTERACT
▪ The invisible hand works through the price system:
• The interaction of buyers and sellers
determines prices of goods and services.
• Each price reflects the good’s value to buyers
and the cost of producing the good.
• Prices guide self-interested households and
firms to make decisions that, in many cases,
maximize society’s economic well-being.
Principle #6: Markets Are Usually A Good Way
to Organize Economic Activity
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CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE INTERACT
▪ Important role for govt: enforce property rights
(with police, courts)
▪ People are less inclined to work, produce, invest, or
purchase if large risk of their property being stolen.
• A restaurant won’t serve meals if customers
do not pay before they leave.
• A music company won’t produce CDs if too many
people avoid paying by making illegal copies.
Principle #7: Governments Can Sometimes
Improve Market Outcomes
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CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE INTERACT
▪ Govt may alter market outcome to promote efficiency
▪ market failure, when the market fails to allocate
society’s resources efficiently. Causes:
• externalities, when the production or consumption
of a good affects bystanders (e.g. pollution)
• market power, a single buyer or seller has
substantial influence on market price (e.g. monopoly)
▪ In such cases, public policy may increase efficiency.
Principle #7: Governments Can Sometimes
Improve Market Outcomes
22. 21
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW PEOPLE INTERACT
▪ Govt may alter market outcome to promote equity
▪ If the market’s distribution of economic well-being
is not desirable, tax or welfare policies can change
how the economic “pie” is divided.
Principle #7: Governments Can Sometimes
Improve Market Outcomes
23. A C T I V E L E A R N I N G 2:
Discussion Questions
In each of the following situations, what is the
government’s role? Does the government’s
intervention improve the outcome?
a. Public schools for K-12
b. Workplace safety regulations
c. Public highways
d. Patent laws, which allow drug companies to
charge high prices for life-saving drugs
22
24. 23
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW THE ECONOMY AS A WHOLE WORKS
▪ The last three
principles deal with
the economy as a
whole.
25. 24
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW THE ECONOMY AS A WHOLE WORKS
▪ Huge variation in living standards across
countries and over time:
• Average income in rich countries is more than
ten times average income in poor countries.
• The U.S. standard of living today is about
eight times larger than 100 years ago.
Principle #8: A country’s standard of living
depends on its ability to produce goods &
services.
26. 25
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW THE ECONOMY AS A WHOLE WORKS
▪ The most important determinant of living standards:
productivity, the amount of goods and services
produced per unit of labor.
▪ Productivity depends on the equipment, skills, and
technology available to workers.
▪ Other factors (e.g., labor unions, competition from
abroad) have far less impact on living standards.
Principle #8: A country’s standard of living
depends on its ability to produce goods &
services.
27. 26
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW THE ECONOMY AS A WHOLE WORKS
▪ Inflation: increases in the general level of prices.
▪ In the long run, inflation is almost always caused
by excessive growth in the quantity of money,
which causes the value of money to fall.
▪ The faster the govt creates money,
the greater the inflation rate.
Principle #9: Prices rise when the
government prints too much money.
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CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
HOW THE ECONOMY AS A WHOLE WORKS
▪ In the short-run (1 – 2 years),
many economic policies push inflation and
unemployment in opposite directions.
▪ Other factors can make this tradeoff more or less
favorable, but the tradeoff is always present.
Principle #10: Society faces a short-run
tradeoff between inflation and unemployment
29. 28
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
FYI: How to Read Your Textbook
1. Summarize, don’t highlight.
Highlighting is a passive activity that won’t improve
your comprehension or retention. Instead, summarize
each section in a few sentences of your own words.
When you finish, compare your summary to the one
at the end of the chapter.
2. Test yourself.
Try the “QuickQuiz” that follows each section before
moving on to the next section. Write your answers
down, and compare them to the answers in the back
of the book. If your answers are incorrect, review the
section before moving on.
30. 29
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
FYI: How to Read Your Textbook
3. Practice, practice, practice.
Work through the end-of-chapter review questions
and problems. They are often good practice for the
exams. And the more you use your new knowledge,
the more solid it will become.
4. Go online.
The book comes with excellent web resources,
including practice quizzes, tools to strengthen your
graphing skills, helpful video clips, and other
resources to help you learn the textbook material
more easily and effectively.
31. 30
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
FYI: How to Read Your Textbook
5. Study in groups.
Get together with a few of your classmates to review
each chapter, quiz each other, and help each other
understand the material in the chapter.
6. Don’t forget the real world.
Read the Case Studies and In The News boxes in
each chapter. They will help you see how the new
terms, concepts, models, and graphs apply to the real
world. As you read the newspaper or watch the
evening news, see if you can find the connections
with what you’re learning in the textbook.
32. 31
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
CONCLUSION
▪ Economics offers many insights about the
behavior of people, markets, and economies.
▪ It is based on a few ideas that can be applied
in many situations.
▪ Whenever we refer back to one of the
Ten Principles from this chapter,
you will see an icon like this one:
33. 32
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
CHAPTER SUMMARY
▪ The principles of decision making are:
• People face tradeoffs.
• The cost of any action is measured in terms of
foregone opportunities.
• Rational people make decisions by comparing
marginal costs and marginal benefits.
• People respond to incentives.
34. 33
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
CHAPTER SUMMARY
▪ The principles of interactions among people are:
• Trade can be mutually beneficial.
• Markets are usually a good way of
coordinating trade.
• Govt can potentially improve market
outcomes if there is a market failure
or if the market outcome is inequitable.
35. 34
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
CHAPTER SUMMARY
▪ The principles of the economy as a whole are:
• Productivity is the ultimate source of living
standards.
• Money growth is the ultimate source of
inflation.
• Society faces a short-run tradeoff between
inflation and unemployment.