Micro Economic
1. PRINCIPES OF ECONOMICS-MANKIEW
CHAPTER 1- QUESTION FOR REVIEW (18)
No 3. What is inflation and what causes it? = Inflation is an increase in the overall level of prices in the economy. Inflation happen because culprit is growth in the quantity o money when a government creates larges quantities of the nation’s money, the value of the money.
No 5. Explain the two main causes of market failure and give an example of each! = Externality, is the impact of one person’s action on the well being of a bystander Example: pollution. = Market power, is the ability of a single economic actor (or small group of acors) to have a substantial influence on market prices. Example : if everyone in town needs water but there is only one well, the owner of the well is not subject to the rigorous competition with which the invisible hand normally keeps self interest in check.
2. Principles of economics-mankiew
CHAPTER 2 –question for review (38)
No. 1. Why do economists sometimes offer conflicting advice to policymakers? = economist who advise policymakers offer conflicting advise either because of differences in scientific judgements or because of differences in values. At other times, economist are united in the advice they offer, but policymakers may choose to ignore it.
No. 7. What are the subfields into which economics is divided? Explain what each subfield studies. = microeconomics and macroeconomics. Microeconomics is the study of how households and firms are make decisions and how they interact in makers. Macroeconomics is the study of economi wide phenomena, including inflation, unemployment, and economic growth.
3. PRINCIPES OF ECONOMICS-MANKIEW
CHAPTER 3 – QUESTION FOR REVIEW (61)
No 2. Give an example in which one person has an absolute advantage in doing something but another person has a comparative advantage. = example of absolute advantage: in this case, time is the only input. So we can determine absolute advantage by looking
CHAPTER 1- QUESTION FOR REVIEW (18)
No 3. What is inflation and what causes it? = Inflation is an increase in the overall level of prices in the economy. Inflation happen because culprit is growth in the quantity o money when a government creates larges quantities of the nation’s money, the value of the money.
No 5. Explain the two main causes of market failure and give an example of each! = Externality, is the impact of one person’s action on the well being of a bystander Example: pollution. = Market power, is the ability of a single economic actor (or small group of acors) to have a substantial influence on market prices. Example : if everyone in town needs water but there is only one well, the owner of the well is not subject to the rigorous competition with which the invisible hand normally keeps self interest in check.
2. Principles of economics-mankiew
CHAPTER 2 –question for review (38)
No. 1. Why do economists sometimes offer conflicting advice to policymakers? = economist who advise policymakers offer conflicting advise either because of differences in scientific judgements or because of differences in values. At other times, economist are united in the advice they offer, but policymakers may choose to ignore it.
No. 7. What are the subfields into which economics is divided? Explain what each subfield studies. = microeconomics and macroeconomics. Microeconomics is the study of how households and firms are make decisions and how they interact in makers. Macroeconomics is the study of economi wide phenomena, including inflation, unemployment, and economic growth.
3. PRINCIPES OF ECONOMICS-MANKIEW
CHAPTER 3 – QUESTION FOR REVIEW (61)
No 2. Give an example in which one person has an absolute advantage in doing something but another person has a comparative advantage. = example of absolute advantage: in this case, time is the only input. So we can determine absolute advantage by looking