SHOCKS IN THE ECONOMY.pptx
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this is very important slide share related with the economy , on the topic of shocks to supply and demand in which both with positive and negative types of shocks are discussed in detail.
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Theory of Production
This document discusses the theory of production. It defines production as a process that creates or adds value by converting inputs into outputs. The key inputs are factors of production like land, labor, capital and technology.
It then covers the concept of a production function, which expresses the relationship between inputs and outputs. Production functions can be short-run or long-run depending on whether inputs are variable or fixed. The laws of variable proportions and returns to scale govern these different types of production functions. Isoquants and the marginal rate of technical substitution are also discussed as ways to depict input combinations.
Theory of production 2
The document discusses production theory, which forms the foundation of supply theory. It covers key concepts such as:
1) Short-run vs long-run production and the fixed and variable nature of inputs.
2) Production functions and the relationship between total, average, and marginal product.
3) The law of diminishing marginal returns and the three stages of production.
4) Isoquants, isocost lines, and how firms determine optimal input combinations to minimize costs.
Phillip's curve and Okun Law of UK
This presentation summarizes Philip's curve and Okun's law. It discusses how Philip's curve shows the relationship between unemployment and inflation in an economy based on data from the UK. It also explains how Okun's law describes a negative relationship between GDP and unemployment, with the economy experiencing a 1 percentage point rise in unemployment for every 3 percentage point decrease in GDP. Graphs are presented analyzing the relationships between GDP and unemployment from 1980-2012 and between inflation and unemployment from 1980-2012 in the UK.
Shift in demand curve
This document discusses the key concepts of demand, including the law of demand, demand curves, and factors that can cause a shift in the demand curve. It explains that the law of demand states that as price increases, quantity demanded decreases, and vice versa. A demand curve illustrates the relationship between price and quantity demanded, and it holds other factors constant. However, when factors like income, population, tastes, or prices of other goods change, it can cause the entire demand curve to shift, not just a movement along the curve. The document provides examples of how changes in these factors would impact demand.
Law of variable proportion
Isoquant is also called as equal product curve or production indifference curve or constant product curve. Isoquant indicates various combinations of two factors of production which give the same level of output per unit of time.
Just as an indifference curve represents various combinations of two goods which give a consumer equal amount of satisfaction, an iso-product curve shows all possible combinations of two inputs physically capable of producing a given level of output. Since an iso-product curve represents those combinations which will result in the production of an equal quantity of output, the producer would be indifferent between them.
This law was given by Alfred Marshall in his book principle of economics.
It show particular pattern of change in output when some factor remain fixed.
Production depend upon factors of production , if factors of production are good, production may increase and vice-versa.
Production function show functional relationship between production and factors of production.
It refers to manner of change in output cost by the increase in all the input simultaneously and in the same proportion.
Returns refers to “change in physical output”
Scale refers to “quantity of input employed”
Change in scale means that all factors of production are increased or decreased in same proportion.
The cost advantage that arises with increased output of a product.
It arises because of the inverse relationship between the quantity produced and per-unit fixed cost.
Profit refers to the excess of receipts from the sale of goods over the expenditure incurred on producing them.
The amount received from the sale of goods is known as ‘revenue’ and the expenditure on production of such goods is termed as ‘cost’. The difference between revenue and cost is known as ‘profit’.
For example, if a firm sells goods for Rs. 10 crores after incurring an expenditure of Rs. 7 crores, then profit will be Rs. 3 crores.
Price change income and substittution effects
1) Economists separate the impact of a price change into a substitution effect and income effect. The substitution effect is due to changes in relative prices, while the income effect is due to changes in purchasing power.
2) There are two main methods to decompose the price effect: the Hicksian method and the Slutsky method. The Hicksian method isolates the substitution effect by holding utility constant, while the Slutsky method does so by holding purchasing power constant.
3) For normal goods, the substitution and income effects reinforce each other, ensuring demand falls when price rises. Rare inferior goods can see opposing effects, potentially causing demand to rise with price - known as Giffen goods.
Inflation
The document defines and explains several key concepts related to inflation:
- Inflation is a general rise in price levels across most markets over time, eroding purchasing power. It is measured by calculating changes in the consumer price index (CPI).
- The CPI tracks price changes of a basket of common goods and services in an area. A higher CPI indicates higher costs of living.
- While some inflation is necessary for economic growth, high or unpredictable inflation can be harmful as wages may not keep pace and erode purchasing power. Hyperinflation occurs when inflation accelerates rapidly out of control.
Basic elements of supply and demand
This document discusses the basic elements of supply and demand. It defines demand and supply schedules and curves, and the laws of demand and supply. It also outlines several factors that affect supply and demand curves, such as changes in tastes, income, prices of related goods, technology, and government policies. The document also discusses market equilibrium and how shifts in supply and demand curves impact equilibrium price and quantity. Specifically, it explains how a rightward shift in demand or supply results in a higher equilibrium price, while a leftward shift decreases the equilibrium price.
Recommended
Theory of Production
This document discusses the theory of production. It defines production as a process that creates or adds value by converting inputs into outputs. The key inputs are factors of production like land, labor, capital and technology.
It then covers the concept of a production function, which expresses the relationship between inputs and outputs. Production functions can be short-run or long-run depending on whether inputs are variable or fixed. The laws of variable proportions and returns to scale govern these different types of production functions. Isoquants and the marginal rate of technical substitution are also discussed as ways to depict input combinations.
Theory of production 2
The document discusses production theory, which forms the foundation of supply theory. It covers key concepts such as:
1) Short-run vs long-run production and the fixed and variable nature of inputs.
2) Production functions and the relationship between total, average, and marginal product.
3) The law of diminishing marginal returns and the three stages of production.
4) Isoquants, isocost lines, and how firms determine optimal input combinations to minimize costs.
Phillip's curve and Okun Law of UK
This presentation summarizes Philip's curve and Okun's law. It discusses how Philip's curve shows the relationship between unemployment and inflation in an economy based on data from the UK. It also explains how Okun's law describes a negative relationship between GDP and unemployment, with the economy experiencing a 1 percentage point rise in unemployment for every 3 percentage point decrease in GDP. Graphs are presented analyzing the relationships between GDP and unemployment from 1980-2012 and between inflation and unemployment from 1980-2012 in the UK.
Shift in demand curve
This document discusses the key concepts of demand, including the law of demand, demand curves, and factors that can cause a shift in the demand curve. It explains that the law of demand states that as price increases, quantity demanded decreases, and vice versa. A demand curve illustrates the relationship between price and quantity demanded, and it holds other factors constant. However, when factors like income, population, tastes, or prices of other goods change, it can cause the entire demand curve to shift, not just a movement along the curve. The document provides examples of how changes in these factors would impact demand.
Law of variable proportion
Isoquant is also called as equal product curve or production indifference curve or constant product curve. Isoquant indicates various combinations of two factors of production which give the same level of output per unit of time.
Just as an indifference curve represents various combinations of two goods which give a consumer equal amount of satisfaction, an iso-product curve shows all possible combinations of two inputs physically capable of producing a given level of output. Since an iso-product curve represents those combinations which will result in the production of an equal quantity of output, the producer would be indifferent between them.
This law was given by Alfred Marshall in his book principle of economics.
It show particular pattern of change in output when some factor remain fixed.
Production depend upon factors of production , if factors of production are good, production may increase and vice-versa.
Production function show functional relationship between production and factors of production.
It refers to manner of change in output cost by the increase in all the input simultaneously and in the same proportion.
Returns refers to “change in physical output”
Scale refers to “quantity of input employed”
Change in scale means that all factors of production are increased or decreased in same proportion.
The cost advantage that arises with increased output of a product.
It arises because of the inverse relationship between the quantity produced and per-unit fixed cost.
Profit refers to the excess of receipts from the sale of goods over the expenditure incurred on producing them.
The amount received from the sale of goods is known as ‘revenue’ and the expenditure on production of such goods is termed as ‘cost’. The difference between revenue and cost is known as ‘profit’.
For example, if a firm sells goods for Rs. 10 crores after incurring an expenditure of Rs. 7 crores, then profit will be Rs. 3 crores.
Price change income and substittution effects
1) Economists separate the impact of a price change into a substitution effect and income effect. The substitution effect is due to changes in relative prices, while the income effect is due to changes in purchasing power.
2) There are two main methods to decompose the price effect: the Hicksian method and the Slutsky method. The Hicksian method isolates the substitution effect by holding utility constant, while the Slutsky method does so by holding purchasing power constant.
3) For normal goods, the substitution and income effects reinforce each other, ensuring demand falls when price rises. Rare inferior goods can see opposing effects, potentially causing demand to rise with price - known as Giffen goods.
Inflation
The document defines and explains several key concepts related to inflation:
- Inflation is a general rise in price levels across most markets over time, eroding purchasing power. It is measured by calculating changes in the consumer price index (CPI).
- The CPI tracks price changes of a basket of common goods and services in an area. A higher CPI indicates higher costs of living.
- While some inflation is necessary for economic growth, high or unpredictable inflation can be harmful as wages may not keep pace and erode purchasing power. Hyperinflation occurs when inflation accelerates rapidly out of control.
Basic elements of supply and demand
This document discusses the basic elements of supply and demand. It defines demand and supply schedules and curves, and the laws of demand and supply. It also outlines several factors that affect supply and demand curves, such as changes in tastes, income, prices of related goods, technology, and government policies. The document also discusses market equilibrium and how shifts in supply and demand curves impact equilibrium price and quantity. Specifically, it explains how a rightward shift in demand or supply results in a higher equilibrium price, while a leftward shift decreases the equilibrium price.
Business cycle
The document discusses several theories of business cycles:
1. Keynes defined business cycles as periods of good trade characterized by rising prices and low unemployment alternating with periods of bad trade with falling prices and high unemployment.
2. Hawtrey's monetary theory argues that business cycles are caused by the expansion and contraction of bank credit, which increases or decreases monetary demand and leads to boom or recession periods.
3. Schumpeter's theory is that innovation drives economic fluctuations as entrepreneurs introduce new products and technologies, initially disrupting existing equilibrium and business patterns before new stability emerges.
The labour market wage determination
This document summarizes factors that influence wage determination in labor markets, including supply and demand, trade unions, government intervention, and discrimination. Key points include:
- Supply and demand are primary determinants of wages, with wages rising or falling based on labor demand changes.
- Economic rent and transfer earnings also impact wages. Workers earn more economic rent the more inelastic the labor supply.
- Trade unions aim to increase member wages through collective bargaining, creating a new higher minimum supply curve. This raises wages but reduces employment.
- Government policies like minimum wage legislation and anti-discrimination laws also impact wages.
- Discrimination against groups lowers their wages below true market rates due to prejudices about their productivity
Market equilibrium
In a competitive market, supply and demand forces interact to determine an equilibrium price and quantity. At the equilibrium point:
- The quantity demanded is equal to the quantity supplied.
- There is no excess supply or demand, clearing the market.
- This equilibrium price is stable and will rule in the market, with buyers and sellers accepting this price.
Law of Variable Proportion By Mr. Prasant Kumar Behera
This document discusses the law of variable proportions, which examines how output is affected by changing one variable input while holding other inputs fixed in the short run. It describes how marginal and average product initially increase as the variable input is added (stage I of increasing returns), then diminish after reaching a maximum (stage II of diminishing returns), and eventually become negative (stage III of negative returns). The most profitable stage for a producer to operate is stage II where total product is maximized, even as marginal and average product decline. The law is particularly applicable to agriculture but less so to industry with more flexible, man-made inputs.
Production function
The production function shows the relationship between inputs used in production (capital, labor, land, etc.) and the maximum output that can be produced from those inputs. There are two types of production functions: fixed proportions, where inputs must be used in specific quantities, and variable proportions, where inputs can be varied. The law of variable proportions states that as one variable input is increased, at some point marginal product will increase, then decrease, and eventually become negative. A production function with one variable input graphs total product, marginal product, and average product against the input level. A production function with two variable inputs uses isoquants to show combinations of inputs that produce the same output level.
Price ceiling and price floor
This document discusses price controls and their impact on supply and demand. It provides examples of price ceilings, which establish a legal maximum price, and price floors, which set a legal minimum price. Price ceilings can cause shortages by creating a surplus of demand over supply. Price floors can result in surpluses or unemployment by producing a surplus of supply over demand. The effects are illustrated using supply and demand graphs for rental housing prices under a price ceiling and wages for unskilled labor under a minimum wage price floor.
Inflation
This document discusses inflation including its causes, types, and effects. Inflation is defined as a rise in general price levels over time which reduces purchasing power. Common causes of inflation include increases in the money supply, credit expansion, deficit financing, and artificial scarcity. The main types of inflation are demand-pull, caused by excessive demand, and cost-push, caused by increased input costs. Effects of inflation impact debtors, those with fixed incomes, consumers, producers, farmers, taxpayers, and governments. The document also includes a map of inflation rates worldwide and a report on rising food inflation forecasts.
Utility analysis
Utility refers to the satisfaction or benefit derived from consuming a good. The law of diminishing marginal utility states that as consumption of a good increases, the marginal utility of each additional unit decreases. The law of equi-marginal utility extends this to consumption of multiple goods, stating that a consumer will allocate their budget in a way that equalizes the marginal utility across goods. This occurs when a consumer spends their money in a way that maximizes total utility subject to their budget constraint.
Duopoly
This document discusses models of duopoly, where there are two firms in an industry. It describes Cournot's model of duopoly, where each firm assumes the other will not change output and they reach an equilibrium with each supplying 1/3 of the market. It also covers Chamberlin's model, where firms recognize their interdependence and independently set the monopoly price to maximize joint profits. Finally, it mentions Bertrand's model which differs from Cournot's in its behavioral assumptions about how firms respond to each other.
Income determination in three sector economy
This document discusses the three sector model of income determination which includes consumption (C), investment (I), and government (G) spending. It explains how to calculate national income (Y) using the three sector model both without taxes and with lump-sum taxes. With lump-sum taxes, disposable income decreases due to the tax, but transfer payments from the government to certain groups can increase disposable income. The document also briefly mentions determining income in an open economy model where net exports (NX) are included.
Theory of production
The document discusses the theory of production, including defining key concepts like the production function and factors of production. It explains that a production function shows the relationship between inputs like labor and capital to the output of a firm. The document also covers the laws of variable proportions and diminishing returns, noting that initially adding more of one input leads to increasing returns but eventually marginal returns decrease. Finally, it provides an example of how marginal product changes as labor is added to fixed land and capital, going through stages of increasing, diminishing, and eventually negative returns.
Perfect Competition: Marginal revenue-and-marginal-cost-approach
This document discusses marginal revenue and marginal cost. It defines marginal revenue as the additional revenue generated from increasing sales by one unit, and marginal cost as the change in opportunity cost from producing one more unit. A firm maximizes profit where marginal revenue equals marginal cost. Perfect competition results in allocative efficiency, with price equal to marginal cost. In long-run equilibrium under perfect competition, firms have no incentive to enter or exit the market as price equals average total cost, and no incentive to change capacity as marginal cost equals price.
Theory of Production
Theory of production describes the relationship between inputs and outputs in the production process. A production function defines this relationship mathematically. In the short run, some inputs are fixed while others are variable. As the variable input increases, total output initially increases at an increasing rate (stage 1), then at a decreasing rate (stage 2), and eventually decreases (stage 3), following the law of variable proportions. In the long run, all inputs are variable. If all inputs increase proportionately, we can see increasing, constant, or decreasing returns to scale. Isoquants show the combinations of inputs that produce the same output level.
OSMANLI İMPARATORLUĞU’NDA UYDURULMUŞ VERGİLER (Bİ’DAT) VE KEYFİ VERGİLER
OSMANLI İMPARATORLUĞU’NDA UYDURULMUŞ VERGİLER (Bİ’DAT) VE KEYFİ VERGİLER
Theory of cost final
The document discusses various cost concepts in economics including:
- Opportunity cost is the next best alternative use of a resource.
- Accounting costs include explicit payments, while economic costs also include implicit opportunity costs.
- Total, average, and marginal costs are defined for both the short-run and long-run. In the short-run some costs are fixed while in the long-run all costs are variable.
- Cost curves like AVC, ATC, and MC are U-shaped based on the law of diminishing returns in production. Minimum efficient scale is where long-run average costs are minimized.
Cournot's Duopoly model
This document summarizes the Cournot duopoly model of market competition between two firms. It explains that under Cournot's assumptions, the two firms will each capture 1/3 of the market share and settle at an equilibrium price point between the competitive and monopoly prices. The model involves the firms reacting to each other's output and price decisions in successive rounds until they split the market evenly. Some criticisms of the model are that it assumes costless production and does not allow for new firm entry or learning over time.
Aggregate demand and supply
The document discusses short-run economic fluctuations and the aggregate demand-aggregate supply model. It notes that most macroeconomic variables fluctuate together in the short-run as output rises and falls, with unemployment moving inversely to output. The aggregate demand curve slopes downward, meaning a lower price level increases the quantity of goods and services demanded. The aggregate supply curve slopes upward in the short-run but is vertical in the long-run, so price changes do not affect output. The model aims to explain short-run fluctuations around long-run trends in output and prices.
Price Consumption Curve
This document discusses consumer choice and how consumption changes in response to changes in income and price. It covers:
- How an increase in income leads to an increase in consumption of normal goods but a decrease for inferior goods.
- How an increase in price leads to a decrease in quantity demanded through both substitution and income effects. These effects can be analyzed separately using compensating variations.
- The difference between normal, inferior, and Giffen goods based on whether the income or substitution effect dominates in response to a price change.
- How to construct demand curves, price-consumption curves, and Engel curves from indifference curves and budget constraints.
Market failure
1. Market failure occurs when the conditions for perfect competition are not met, resulting in inefficient resource allocation. Some causes of market failure include monopoly, externalities, public goods, imperfect information, and non-existent markets.
2. Externalities occur when the actions of one economic unit unintentionally impact another in an uncompensated way, such as pollution from factories. This leads to a divergence between private and social costs/benefits.
3. For goods with public goods characteristics of non-rivalry and non-excludability, like national defense, there is no market mechanism to efficiently allocate resources, as they cannot be priced. This results in underprovision of public goods.
National income methods & concepts & circular flow
circular flow of income,
meaning of national income,
concepts of national income,
methods & problems in measuring national income
concepts of agregate demand & agregate supply
Economics Assignment Sample - Instant Assignment Help
Read this "Economics Assignment Sample" prepared by the expert writer of Instant Assignment Help and try to improve your writing skills. We provide free assignment samples to students on every module. If you are still facing any problem in writing your assignment then contact us and get the best assignment help at affordable price. Place your order now and avail our exciting offers and discounts.
Inflation
The document discusses different types of inflation including demand-pull, cost-push, profit-induced, and monetary inflation. It also covers anticipated vs unanticipated inflation, and different rates of inflation from creeping to hyperinflation. Further, it examines open vs suppressed inflation, and partial vs full inflation. Deflation is also introduced as a decrease in general price levels that can aggravate recessions.
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Business cycle
The document discusses several theories of business cycles:
1. Keynes defined business cycles as periods of good trade characterized by rising prices and low unemployment alternating with periods of bad trade with falling prices and high unemployment.
2. Hawtrey's monetary theory argues that business cycles are caused by the expansion and contraction of bank credit, which increases or decreases monetary demand and leads to boom or recession periods.
3. Schumpeter's theory is that innovation drives economic fluctuations as entrepreneurs introduce new products and technologies, initially disrupting existing equilibrium and business patterns before new stability emerges.
The labour market wage determination
This document summarizes factors that influence wage determination in labor markets, including supply and demand, trade unions, government intervention, and discrimination. Key points include:
- Supply and demand are primary determinants of wages, with wages rising or falling based on labor demand changes.
- Economic rent and transfer earnings also impact wages. Workers earn more economic rent the more inelastic the labor supply.
- Trade unions aim to increase member wages through collective bargaining, creating a new higher minimum supply curve. This raises wages but reduces employment.
- Government policies like minimum wage legislation and anti-discrimination laws also impact wages.
- Discrimination against groups lowers their wages below true market rates due to prejudices about their productivity
Market equilibrium
In a competitive market, supply and demand forces interact to determine an equilibrium price and quantity. At the equilibrium point:
- The quantity demanded is equal to the quantity supplied.
- There is no excess supply or demand, clearing the market.
- This equilibrium price is stable and will rule in the market, with buyers and sellers accepting this price.
Law of Variable Proportion By Mr. Prasant Kumar Behera
This document discusses the law of variable proportions, which examines how output is affected by changing one variable input while holding other inputs fixed in the short run. It describes how marginal and average product initially increase as the variable input is added (stage I of increasing returns), then diminish after reaching a maximum (stage II of diminishing returns), and eventually become negative (stage III of negative returns). The most profitable stage for a producer to operate is stage II where total product is maximized, even as marginal and average product decline. The law is particularly applicable to agriculture but less so to industry with more flexible, man-made inputs.
Production function
The production function shows the relationship between inputs used in production (capital, labor, land, etc.) and the maximum output that can be produced from those inputs. There are two types of production functions: fixed proportions, where inputs must be used in specific quantities, and variable proportions, where inputs can be varied. The law of variable proportions states that as one variable input is increased, at some point marginal product will increase, then decrease, and eventually become negative. A production function with one variable input graphs total product, marginal product, and average product against the input level. A production function with two variable inputs uses isoquants to show combinations of inputs that produce the same output level.
Price ceiling and price floor
This document discusses price controls and their impact on supply and demand. It provides examples of price ceilings, which establish a legal maximum price, and price floors, which set a legal minimum price. Price ceilings can cause shortages by creating a surplus of demand over supply. Price floors can result in surpluses or unemployment by producing a surplus of supply over demand. The effects are illustrated using supply and demand graphs for rental housing prices under a price ceiling and wages for unskilled labor under a minimum wage price floor.
Inflation
This document discusses inflation including its causes, types, and effects. Inflation is defined as a rise in general price levels over time which reduces purchasing power. Common causes of inflation include increases in the money supply, credit expansion, deficit financing, and artificial scarcity. The main types of inflation are demand-pull, caused by excessive demand, and cost-push, caused by increased input costs. Effects of inflation impact debtors, those with fixed incomes, consumers, producers, farmers, taxpayers, and governments. The document also includes a map of inflation rates worldwide and a report on rising food inflation forecasts.
Utility analysis
Utility refers to the satisfaction or benefit derived from consuming a good. The law of diminishing marginal utility states that as consumption of a good increases, the marginal utility of each additional unit decreases. The law of equi-marginal utility extends this to consumption of multiple goods, stating that a consumer will allocate their budget in a way that equalizes the marginal utility across goods. This occurs when a consumer spends their money in a way that maximizes total utility subject to their budget constraint.
Duopoly
This document discusses models of duopoly, where there are two firms in an industry. It describes Cournot's model of duopoly, where each firm assumes the other will not change output and they reach an equilibrium with each supplying 1/3 of the market. It also covers Chamberlin's model, where firms recognize their interdependence and independently set the monopoly price to maximize joint profits. Finally, it mentions Bertrand's model which differs from Cournot's in its behavioral assumptions about how firms respond to each other.
Income determination in three sector economy
This document discusses the three sector model of income determination which includes consumption (C), investment (I), and government (G) spending. It explains how to calculate national income (Y) using the three sector model both without taxes and with lump-sum taxes. With lump-sum taxes, disposable income decreases due to the tax, but transfer payments from the government to certain groups can increase disposable income. The document also briefly mentions determining income in an open economy model where net exports (NX) are included.
Theory of production
The document discusses the theory of production, including defining key concepts like the production function and factors of production. It explains that a production function shows the relationship between inputs like labor and capital to the output of a firm. The document also covers the laws of variable proportions and diminishing returns, noting that initially adding more of one input leads to increasing returns but eventually marginal returns decrease. Finally, it provides an example of how marginal product changes as labor is added to fixed land and capital, going through stages of increasing, diminishing, and eventually negative returns.
Perfect Competition: Marginal revenue-and-marginal-cost-approach
This document discusses marginal revenue and marginal cost. It defines marginal revenue as the additional revenue generated from increasing sales by one unit, and marginal cost as the change in opportunity cost from producing one more unit. A firm maximizes profit where marginal revenue equals marginal cost. Perfect competition results in allocative efficiency, with price equal to marginal cost. In long-run equilibrium under perfect competition, firms have no incentive to enter or exit the market as price equals average total cost, and no incentive to change capacity as marginal cost equals price.
Theory of Production
Theory of production describes the relationship between inputs and outputs in the production process. A production function defines this relationship mathematically. In the short run, some inputs are fixed while others are variable. As the variable input increases, total output initially increases at an increasing rate (stage 1), then at a decreasing rate (stage 2), and eventually decreases (stage 3), following the law of variable proportions. In the long run, all inputs are variable. If all inputs increase proportionately, we can see increasing, constant, or decreasing returns to scale. Isoquants show the combinations of inputs that produce the same output level.
OSMANLI İMPARATORLUĞU’NDA UYDURULMUŞ VERGİLER (Bİ’DAT) VE KEYFİ VERGİLER
OSMANLI İMPARATORLUĞU’NDA UYDURULMUŞ VERGİLER (Bİ’DAT) VE KEYFİ VERGİLER
Theory of cost final
The document discusses various cost concepts in economics including:
- Opportunity cost is the next best alternative use of a resource.
- Accounting costs include explicit payments, while economic costs also include implicit opportunity costs.
- Total, average, and marginal costs are defined for both the short-run and long-run. In the short-run some costs are fixed while in the long-run all costs are variable.
- Cost curves like AVC, ATC, and MC are U-shaped based on the law of diminishing returns in production. Minimum efficient scale is where long-run average costs are minimized.
Cournot's Duopoly model
This document summarizes the Cournot duopoly model of market competition between two firms. It explains that under Cournot's assumptions, the two firms will each capture 1/3 of the market share and settle at an equilibrium price point between the competitive and monopoly prices. The model involves the firms reacting to each other's output and price decisions in successive rounds until they split the market evenly. Some criticisms of the model are that it assumes costless production and does not allow for new firm entry or learning over time.
Aggregate demand and supply
The document discusses short-run economic fluctuations and the aggregate demand-aggregate supply model. It notes that most macroeconomic variables fluctuate together in the short-run as output rises and falls, with unemployment moving inversely to output. The aggregate demand curve slopes downward, meaning a lower price level increases the quantity of goods and services demanded. The aggregate supply curve slopes upward in the short-run but is vertical in the long-run, so price changes do not affect output. The model aims to explain short-run fluctuations around long-run trends in output and prices.
Price Consumption Curve
This document discusses consumer choice and how consumption changes in response to changes in income and price. It covers:
- How an increase in income leads to an increase in consumption of normal goods but a decrease for inferior goods.
- How an increase in price leads to a decrease in quantity demanded through both substitution and income effects. These effects can be analyzed separately using compensating variations.
- The difference between normal, inferior, and Giffen goods based on whether the income or substitution effect dominates in response to a price change.
- How to construct demand curves, price-consumption curves, and Engel curves from indifference curves and budget constraints.
Market failure
1. Market failure occurs when the conditions for perfect competition are not met, resulting in inefficient resource allocation. Some causes of market failure include monopoly, externalities, public goods, imperfect information, and non-existent markets.
2. Externalities occur when the actions of one economic unit unintentionally impact another in an uncompensated way, such as pollution from factories. This leads to a divergence between private and social costs/benefits.
3. For goods with public goods characteristics of non-rivalry and non-excludability, like national defense, there is no market mechanism to efficiently allocate resources, as they cannot be priced. This results in underprovision of public goods.
National income methods & concepts & circular flow
circular flow of income,
meaning of national income,
concepts of national income,
methods & problems in measuring national income
concepts of agregate demand & agregate supply
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Law of Variable Proportion By Mr. Prasant Kumar Behera
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Perfect Competition: Marginal revenue-and-marginal-cost-approach
OSMANLI İMPARATORLUĞU’NDA UYDURULMUŞ VERGİLER (Bİ’DAT) VE KEYFİ VERGİLER
OSMANLI İMPARATORLUĞU’NDA UYDURULMUŞ VERGİLER (Bİ’DAT) VE KEYFİ VERGİLER
National income methods & concepts & circular flow
National income methods & concepts & circular flow
Similar to SHOCKS IN THE ECONOMY.pptx
Economics Assignment Sample - Instant Assignment Help
Read this "Economics Assignment Sample" prepared by the expert writer of Instant Assignment Help and try to improve your writing skills. We provide free assignment samples to students on every module. If you are still facing any problem in writing your assignment then contact us and get the best assignment help at affordable price. Place your order now and avail our exciting offers and discounts.
Inflation
The document discusses different types of inflation including demand-pull, cost-push, profit-induced, and monetary inflation. It also covers anticipated vs unanticipated inflation, and different rates of inflation from creeping to hyperinflation. Further, it examines open vs suppressed inflation, and partial vs full inflation. Deflation is also introduced as a decrease in general price levels that can aggravate recessions.
INFLATION AND RECESSION
The document discusses inflation and recession. It defines inflation as a general rise in prices over time, and notes its causes can include excess money supply, rapid bank credit expansion, and deficit financing. It also defines recession as a period of declining economic activity for at least two quarters. The impacts of inflation and recession discussed include increased costs of living, income inequality, and rising unemployment respectively. The document also outlines some government measures that can be taken to control inflation and help overcome recession, such as interest rate adjustments, import liberalization, and stimulus spending.
Inflation in Pakistan
Inflation in Pakistan
Types of Inflation
DEGREES OF INFLATION
CAUSES OF INFLATION IN PAKISTAN
MEASURES TO CONTROL THE INFLATION
EFFECTS OF INFLATION
Conclusion
Nidhi ppt
The document discusses various aspects of inflation including:
- Defining inflation as a general rise in prices over time.
- Factors that can influence inflation like increases in money supply, demand for goods/services, and decreases in supply of goods/services.
- Two main ways of measuring inflation.
- Different types of inflation like creeping, galloping, and hyperinflation.
- Problems high inflation can cause like economic uncertainty, reduced investment and savings, and worsening poverty.
- Historical inflation rates in India and measures taken to control inflation through monetary and fiscal policies.
Inflation
The document discusses various types and causes of inflation. It lists different classifications of inflation such as anticipated vs unanticipated inflation, creeping vs walking vs running vs hyper inflation. It also discusses different causes of inflation including demand-pull, cost-push, profit-induced, budgetary, and monetary inflation. The document also covers open vs suppressed inflation and partial vs full inflation.
Types of inflation
This document discusses inflation in India, including defining different types of inflation rates and causes of inflation. It outlines how inflation is measured in India using the Wholesale Price Index and Consumer Price Index. The document then analyzes current factors contributing to low inflation rates in India, such as falling international crude oil prices and lower food price increases. It also discusses potential consequences and sustainability issues regarding India's recent achievement of near-zero inflation rates.
Economic crisis due to inflation
This document discusses inflation in Pakistan's economy. It defines inflation and outlines Pakistan's inflation rate from 2014-2015, which was recorded at 2.11%. The document then lists and explains the various causes of inflation in Pakistan, including increases in money supply, population growth, and slow industrial growth. It also outlines the effects of inflation, such as reducing purchasing power. Finally, the document proposes measures to control inflation, like increasing output growth, controlling money supply through monetary policy, and improving agricultural and industrial development.
4a. Determinants of Inflation.pptx
Demand-pull inflation occurs when aggregate demand exceeds available resources, causing prices to rise. This is generally caused by high consumption spending, income, and money supply, and would be seen in expansionary periods of the business cycle. Cost-push inflation results from rising production costs, such as increased wages, oil prices, taxes, and import prices, which are passed on to consumers. In reality, it can be difficult to distinguish between purely demand-driven or cost-driven inflation, as factors like wage increases can impact both costs and demand.
33
This document discusses short-run economic fluctuations and the aggregate demand and aggregate supply model. It provides background on recessions and the business cycle. It then explains key aspects of the aggregate demand and aggregate supply model, including how the aggregate demand curve slopes downward and how the aggregate supply curve slopes upward in the short-run due to price/wage stickiness. Factors that can shift the curves, such as consumption, investment and expected inflation, are also outlined.
Inflation
This document discusses various aspects of inflation including its characteristics, causes, types, and effects. It defines inflation as a sustained increase in the general price level in an economy. Inflation can be caused by an excess demand due to an increase in money income or a decrease in production. The types of inflation discussed include comprehensive vs sporadic inflation, wartime vs postwar inflation, and creeping vs walking/running/galloping inflation based on the rate of price increases. The document also examines why governments try to control inflation and outlines some effects of inflation on different sectors of the economy.
Inflation and deflation
The document is a presentation about inflation and deflation given by Muhammad Waqas Hanif from the Department of Mechanical Engineering at WEC. It defines inflation as a general rise in prices over time which decreases purchasing power. Deflation is a continuous fall in prices, especially during recessions. The presentation discusses causes of inflation like rising costs and wages, and measures to control it like increasing production and enforcing anti-hoarding policies. Deflation can be caused by falling money supply or rising productivity. Its effects include reduced revenues, layoffs, and less customer spending.
4. short run economic fluctuations
The document discusses aggregate demand and aggregate supply and short-run economic fluctuations. It provides details on the aggregate demand curve, which slopes downward due to wealth, interest rate, and exchange rate effects. The aggregate supply curve is vertical in the long-run and upward sloping in the short-run, due to price stickiness. Economic fluctuations can be caused by shifts in aggregate demand or aggregate supply, which can result in changes to output and price levels in both the short-run and long-run.
Inflation, types of inflation
This document discusses various types and causes of inflation. It outlines six main causes of inflation: demand-pull, cost-push, profit-induced, budgetary, monetary, and multi-causal inflation. It also discusses inflation based on rates (anticipated vs unanticipated), degrees (creeping, walking, running, hyper), and levels of control (open vs suppressed; partial vs full). Deflation is also briefly covered, defined as a decrease in general price levels that can exacerbate recessions.
Cause of inflation
The document discusses inflation, its definition as a general increase in price levels over time, and its causes. It identifies three main types of inflation: demand-pull inflation from increases in spending, cost-push inflation from drops in supply, and built-in inflation from past price and wage increases creating a spiral. The document was written by Ajeet Kumar Pandey in the batch SB2 on 08/01/2011 for an assignment on inflation and its causes.
Agrregate Demand and Supply
Short-run economic fluctuations are caused by shifts in aggregate demand and aggregate supply. A decrease in aggregate demand causes output to fall in the short run as the economy enters a recession, with declining GDP and rising unemployment. In the long run, output returns to its natural rate. An adverse shift in aggregate supply also causes output to fall and can lead to stagflation, with both recession and inflation. Policymakers aim to stabilize output by influencing aggregate demand.
Inflation
The document discusses inflation in India, including its types, causes, measurement, and current trends. It provides details on key inflation indices like the wholesale price index and consumer price index. Recent inflation in India has fallen towards zero inflation due to several factors: a large drop in international crude oil prices, stagnant food prices, compressed demand from lower rural wages and spending, and tight monetary policy from the RBI. However, the document notes this decline may not be sustainable as the key drivers of falling prices are volatile and outside monetary policy control.
Macroeconomics Policies
The document provides an overview of macroeconomic policies and concepts including:
1) It discusses the business cycle and macroeconomic equilibrium and how disturbances can cause instability.
2) Keynes argued that government intervention is necessary to address inherent instability in free markets. Fiscal and monetary policies can be used to stimulate aggregate demand.
3) Supply-side policies aim to shift aggregate supply curves by incentivizing production. Both demand and supply factors influence macroeconomic outcomes like growth, unemployment and inflation.
Chap9 business cycles
This chapter was taken from the book ECONOMICS 3rd edition by Feliciano Fajardo.
This is for classroom instruction purposes.. Thank you
Inflation
Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service.
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- 2. NAME NAJEEB ULLAH REGISTERATION NO. 3593-SE/BSECO/S20 ASSIGNMENT MACROECONOMICS TEACHER. MR. DOCTOR BABER HUSSAIN
- 3. SHOCKS IN THE ECONOMY Shocks may occure to aggregate supply as well as aggregate demand . Supply shocks. there are two types of shocks . 1) Positive shocks to aggregate supply. 2) Negative shocks to aggregate supply.
- 4. EXAMPLES OF POSITIVE SUPPLY SHOCKS . (FAVOURABLE) Shocks that increases output, which causes prices to decrease due to a shift in the supply curve to the right in the short run . while in the long run output and inflation remain unchanged. Shocks may be permanent or temporary. positive supply shocks are 1. Decreases in oil prices. 2. Lower union pressures. 3. A great crop season. 4. Changes in health care industry. 5. Revolution in technology. ETC…..
- 5. EXAMPLES OF NEGATIVE SUPPLY SHOCKS. (UNFAVOURABLE) A negative supply shock decreases output, causing prices to increase. Any natural disaster or other unanticipated event that disrupts the production process and/or supply-chain. The Russia-Ukraine war fueling the 'biggest supply shock to global grain markets' in living memory. A drastic decrease in the available supply of oil due to geopolitical tensions. China imposing rare earth elements export limits against Japan.
- 6. Negative supply shocks would be any natural disaster or other unanticipated event that disrupts the production process and/or supply-chain. Increase in food prices due to crops around the world. When wages hikes immediately. The COVID-19 pandemic can be seen as a supply shock .
- 7. DEMAND SHOCK there are two types of demand shocks . 1)Positive demand shocks. 2)Negative demand shocks.
- 8. POSITIVE DEMAND SHOCK.(FAVOURABLE) A positive demand shock is a sudden increase in demand. Change in Price Cannot Cause a Demand Shock. A change in quantity demanded due to a change in price, does not reflect a demand shock.
- 9. There can be many factors that can lead to a positive demand shock. Some of them include: 1) Government tax cuts. 2) Government stimulus plans. 3) Central bank rate cuts. 4) The introduction of a new technology. 5) The discovery of a previously unknown benefit of a medicine. ETC…….
- 10. NEGATIVE DEMAND SHOCKS. (UNFAVOURABLE) A positive demand shock is a sudden decrease in demand. At any price, the quantity demanded decreased, the entire demand curve shifts left.
- 11. There can be many factors that can lead to a negative demand shock. Some of them include: •Government tax increases. •Central bank rate increases. •The cancellation of a government infrastructure project. •The discovery of a harmful compound in a specific cleaning sanitizer. •The discovery of a previously unknown side effect of a medicine. •ETC……