Question: Explain the significance and utility of your major to the society 10 years from now. An economics major teaches a student two key principles, first that the future is uncertain and second that values are subjective. This paper will briefly explain the significance and utility of an economics major, attempting to demonstrate that whilst … Continue reading The Significance and Utility of an Economics Major
TOTAL REVENUE, TOTAL COST & PROFIT Total revenue is a firm’s return from sale of output. Total cost is the amount paid for inputs used to make outputs. Profits are total revenue minus total cost, TR – TC. The economic goal of a firm is to maximise profit. COSTS AS OPPORTUNITY COSTS Production costs equal … Continue reading Microeconomics – The Costs of Production
The answer to that question isn’t because they’re lazy. It is math. A summer job just doesn’t have the purchasing power it used to have in relation to tuition fees. Not to mention the minimum wage, pricing unskilled job seekers out of the labour market. Inflation caused by credit expansion on behalf of the central … Continue reading NPR: Why Kids Don’t Work Their Way Through College Anymore?
WELFARE ECONOMICS Welfare economics is the study of how the allocation of resources affects economic well-being. Participation in market leads to buyers receiving benefit consumer surplus and sellers receiving benefit producer surplus. Equilibrium maximises total welfare. CONSUMER SURPLUS Willingness to pay measures the buyers’ value of a good or service as the maximum amount that … Continue reading Microeconomics – Consumers, Producers & Efficiency of Markets
EQUILIBRIUM WITHOUT INTERNATIONAL TRADE Assume: an isolated country only produces steel. Imports and exports of steel are prohibited. Results: domestic price adjusts to clear market. The sum of consumer and producer surplus measures the total benefits that buyers and sellers receive. If country begins international trade, will it be an importer or exporter of steel? … Continue reading Microeconomics – Application & International Trade
Elasticity measures how much buyers and sellers respond to changes in market conditions. Price elasticity of demand measures how much the quantity demanded of a good responds to a change in the price of that good. Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price. Determinants … Continue reading Microeconomics – Elasticity & Its Applications
Microeconomic questions and answers. Question 1- The government proposed a law for all Australians to wear hats. (i) How would this affect the demand for and equilibrium price of hats? (ii) How would the law affect the marginal product and the value of the marginal product of hat workers? (iii) How would the law … Continue reading Microeconomic Questions & Answers