It won't let me embed... so click the link below! =)
http://www.quizrevolution.com/ch/a139764/go
Monday, April 4, 2011
Thursday, February 17, 2011
Thursday, February 10, 2011
Compare the GDP, unemployment rate, and inflation for the following countries
GDP:
Canada - 1,336,068 / 7.8% /2.4%
USA - 14,119,000 / 9.0%/ 3.8%
Japan- 5,068,996 / 5.1%/ 1.4%
Germany - 3,330,032 / 6.7%/ 2.7%
France - 2,649,390 / 2.8%/ 10.1%
UK - 2,174,530/ 7.9% / 3.6%
Italy - 2,112,780 / 8.2% / 3.4%
Canada - 1,336,068 / 7.8% /2.4%
USA - 14,119,000 / 9.0%/ 3.8%
Japan- 5,068,996 / 5.1%/ 1.4%
Germany - 3,330,032 / 6.7%/ 2.7%
France - 2,649,390 / 2.8%/ 10.1%
UK - 2,174,530/ 7.9% / 3.6%
Italy - 2,112,780 / 8.2% / 3.4%
Edited- Explanation for the convex shape of the PPC
The PPC is a grraphical way to represent the trade off between two goods - producing more of one while give up less of another - in an efficient way. The curve is in a downward slope, and curving outwards. The downward slope can be explained by the scarcity of resources. And also, when the resources are specialized, it is likely to be more productive than trying to produce certain quantity of both and therefore create the convex shape of the PPC. When the resouces to make guns are transferred to make butter, the output of butter does not equal to the amount of resource that guns given up (as shown in the diagram below). This is due to the law of increasing opportunity costs. Each time that we transfer resources from the production of guns to butter, each additional unit of butter will cost more than the previous one.
Questions and Case Study
QUESTIONS #1-7 (excluding elasticity questions)
1. p = price, q= people
b) 30 people
c) $100
d) 16people
16*$7 = $112 - revenue increase
2. I disagree with these statements. As both curves shift, we can observe the change in both quantity and prices from the graph and determine the shift in market equilibrium.
4. a) higher prices would generally decrease the demand
b) as clothing is a normal-good, the demand will increase with the increase of incom because now
consumers can afford more
c) lower prices will also affect the demand curve becasue with the decrease of price, consumers w
will buy more and also they could afford more of the product
5. a) eq price: $6.55
eq quantity: 1521.36
CASE STUDY CATEPILLAR
... where is it?
1. p = price, q= people
b) 30 people
c) $100
d) 16people
16*$7 = $112 - revenue increase
2. I disagree with these statements. As both curves shift, we can observe the change in both quantity and prices from the graph and determine the shift in market equilibrium.
4. a) higher prices would generally decrease the demand
b) as clothing is a normal-good, the demand will increase with the increase of incom because now
consumers can afford more
c) lower prices will also affect the demand curve becasue with the decrease of price, consumers w
will buy more and also they could afford more of the product
5. a) eq price: $6.55
eq quantity: 1521.36
CASE STUDY CATEPILLAR
... where is it?
Monday, February 7, 2011
Friday, February 4, 2011
ECON QUIZ
As the diagrams wouldn't show up in the quiz, we were only able to complete 5 of them and graded by ourselves by checking the answers at the bottom.
Percentage: 100%
Percentage: 100%
Thursday, February 3, 2011
Production Possibilities Curve
The reason behind the Production Possibilities Curve's convex shape is because of its limited resources while trying to produce different goods. We are always trying to maximize our profit in the most efficient way by producing goods that are most wanted. In the graph, it 
shows that we can only produce n amount of goods x+y. Therefore, as we are trying to reach the optimal production, we have a trade-off, considering its opportunity cost. When Good Y is in its highest production (point A), no Good X is being produced because Good Y has already maximized the amount that could be produced and vice versa at point F.
However, there are times when other people choose another way, instead of the most efficient way, such as point C which is inside the curve. This is an efficient way as it is producing less of each good than is possible given the society's resrouces. And also when are expecations are higher than what the society can produce, like point E. It is at unattainable as our current resources and technology is limited.
This can all be concluded in the law of increasing opportunity costs which gives the PPC its convex shape.
shows that we can only produce n amount of goods x+y. Therefore, as we are trying to reach the optimal production, we have a trade-off, considering its opportunity cost. When Good Y is in its highest production (point A), no Good X is being produced because Good Y has already maximized the amount that could be produced and vice versa at point F. However, there are times when other people choose another way, instead of the most efficient way, such as point C which is inside the curve. This is an efficient way as it is producing less of each good than is possible given the society's resrouces. And also when are expecations are higher than what the society can produce, like point E. It is at unattainable as our current resources and technology is limited.
This can all be concluded in the law of increasing opportunity costs which gives the PPC its convex shape.
Wednesday, February 2, 2011
Assignment 3 - February 3, 2011
Traditional Economies
although there aren't any countries with pure traditional economies anymore, parts of the following countries are using traditional economy
1. China
2. Africa
3. Peru
4. Mexico
5. Iran
Command Economy
1. China
2. Vietnam
3. Laos (by Burma)
4. Cyprus
5. North Korea
Market Economy
1. Canada
2. United States
3. India
4. Germany
5. Switzerland
Three Basic Economic Questions on Canada
1. What should be produced?
Goods that are wanted by the citizens should be produced.
2. How should it be produced?
It should be produced in the cheapest way that can still create high quality and yet the resulted profit is at its optimal position.
3. For who should it be produced?
All the citizens, depending on the target market.
although there aren't any countries with pure traditional economies anymore, parts of the following countries are using traditional economy
1. China
2. Africa
3. Peru
4. Mexico
5. Iran
Command Economy
1. China
2. Vietnam
3. Laos (by Burma)
4. Cyprus
5. North Korea
Market Economy
1. Canada
2. United States
3. India
4. Germany
5. Switzerland
Three Basic Economic Questions on Canada
1. What should be produced?
Goods that are wanted by the citizens should be produced.
2. How should it be produced?
It should be produced in the cheapest way that can still create high quality and yet the resulted profit is at its optimal position.
3. For who should it be produced?
All the citizens, depending on the target market.
Tuesday, February 1, 2011
Questions Page 72 - February 1, 2011
THREE ECONOMIC QUESTIONS THAT ANY SOCIETY MUST ANSWER, REGARDLESS OF ITS POLITICAL FORM
1. What goods will be produced?
The choice of what goods will be produced in a market economy bases on consumer's desires.
Profits that are made through the goods will be an incentive for the sellers to use the limited
resources to produce more. Meanwhile, sellers also have to consider the opportunity cost to
determine whether making cetain goods is worth the trade-off. Although the scarcity of sources are
permanent, suppliers should also keep in mind of the shortage that may raise the price in the market
as the consumer's desires exceeds the amount that could be produced.
2. What methods of production are appropriate?
Suppliers' ultimate goal is to maximize their profit. Therefore, the appropriateness of methods of
prodcution will depend on the one that will cost suppliers the least, but produce the most.
3. Who will be able or permitted to consume the goods and services that are produced?
It is dependant on the goods that are produced as the suppliers target different markets. And the
targeted market will be able/ permitted to consume the goods and services that are produced.
1. What goods will be produced?
The choice of what goods will be produced in a market economy bases on consumer's desires.
Profits that are made through the goods will be an incentive for the sellers to use the limited
resources to produce more. Meanwhile, sellers also have to consider the opportunity cost to
determine whether making cetain goods is worth the trade-off. Although the scarcity of sources are
permanent, suppliers should also keep in mind of the shortage that may raise the price in the market
as the consumer's desires exceeds the amount that could be produced.
2. What methods of production are appropriate?
Suppliers' ultimate goal is to maximize their profit. Therefore, the appropriateness of methods of
prodcution will depend on the one that will cost suppliers the least, but produce the most.
3. Who will be able or permitted to consume the goods and services that are produced?
It is dependant on the goods that are produced as the suppliers target different markets. And the
targeted market will be able/ permitted to consume the goods and services that are produced.
Monday, January 31, 2011
Assignment 1 - January 31, 2011
http://www.financialpost.com/news/economy/Canadas+economy+grows+more+than+expected/4195696/story.html
"Canada's economy grows more than expected", an article written by Paul Vieira captivates me immediately when I scanned through the Financial Post Website. I was still thinking we're in an economic low, in result of the aftermath of the recession. However, according to the article, our performance in November is reported to be in its strongest performance. The one statistics that got me really surprised was the increase in the service-sector. Subsequent to the HST kicking in, I'd think the service sector, especially food will decrease. However there is still a slight increase. I guess HST is not affecting us that bad. As the article highlights, this growth may be "short-lived". The short bounce from our economic low may not last. Although the government always wants to boost our economy, they keep making rules that will cool it. Isn't that a little self-contradictory?
Terms:
Market Expectations - Predictions that were made by investors
GDP - Gross Domestic Product
Sector - Different parts; industries
(i couldn't find 10... so the other 7 is economic terms that i find interesting)
Black Economy - Activities that were not recorded in the tax system
Hedging - Protection against risk
Human Capital - Accumulated skills, expertise, and knowledge of workers
Phillips Curve - Relationship between unemployment and inflation
Placebo - Inactive Procedure
Normative - Based of value judgements
Green Taxes - Taxes imposed to improve the environment
"Canada's economy grows more than expected", an article written by Paul Vieira captivates me immediately when I scanned through the Financial Post Website. I was still thinking we're in an economic low, in result of the aftermath of the recession. However, according to the article, our performance in November is reported to be in its strongest performance. The one statistics that got me really surprised was the increase in the service-sector. Subsequent to the HST kicking in, I'd think the service sector, especially food will decrease. However there is still a slight increase. I guess HST is not affecting us that bad. As the article highlights, this growth may be "short-lived". The short bounce from our economic low may not last. Although the government always wants to boost our economy, they keep making rules that will cool it. Isn't that a little self-contradictory?
Terms:
Market Expectations - Predictions that were made by investors
GDP - Gross Domestic Product
Sector - Different parts; industries
(i couldn't find 10... so the other 7 is economic terms that i find interesting)
Black Economy - Activities that were not recorded in the tax system
Hedging - Protection against risk
Human Capital - Accumulated skills, expertise, and knowledge of workers
Phillips Curve - Relationship between unemployment and inflation
Placebo - Inactive Procedure
Normative - Based of value judgements
Green Taxes - Taxes imposed to improve the environment
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