macro economics

1. shift = growth

   Anmerkungen:

   • more educated/skilled workers new technology more resources
2. movement along = opportunity cost

   Anmerkungen:

   • (different allocation of resources) below curve=unemployment

Anmerkungen:

• quicker training, more skilled, quicker production boredom=recruitment costs

1. free-market

   Anmerkungen:

   • no government intervention all price mechanism
2. mixed

   Anmerkungen:

   • most countries like england
3. centrally planned

   Anmerkungen:

   • 100% government internention 

1. positive = fact
2. normative -value-judgement

Anmerkungen:

• income tastes substitute goods complimentary goods

Anmerkungen:

• responsiveness of demand to a change in price % change in QD / % change in P

Anmerkungen:

• responsiveness of demand to a change in income % change in QD / % change in Y

Anmerkungen:

• responsiveness of demand to a change in price of another good % change QD (A) / % change in P (B)

1. normal

   Anmerkungen:

   • positive income elasticity income increases, demand increases
2. inferior

   Anmerkungen:

   • negative income elasticity income increases, demand decreases
3. substitute

   Anmerkungen:

   • positive elasticity good A increases in price, good B increases in demand
4. complimentary

   Anmerkungen:

   • negative cross elasticity good A increases in price, good B decreases in demand

Anmerkungen:

• changes in production cost technology changes ability to enter/exit industry government subsidies

Anmerkungen:

• determined by spare capacity level of stocks perishability ease of entry/exit to industry

Anmerkungen:

• webley staduium

1. demand = price rise
2. supply = price fall

Anmerkungen:

• causing a fall in output and rise in price

Anmerkungen:

• rise in output, fall in price

Anmerkungen:

• reduces poverty reduces exploitation causes unemployment

Anmerkungen:

• externalities public goods imperfect information labour immobility unstable commodity markets

Anmerkungen:

• (ignored by price mechanism)

Anmerkungen:

• public goods wouldnt be provided in a free market economy because there is no government intervention

Anmerkungen:

• consumers/producers make descisions that reduce their welfare

Anmerkungen:

• workers aren't allocated their most efficent use due to geographical or occupational barriers

Anmerkungen:

• fluctuations make it difficult for consumers to budget their income and for producers to plan investement 

Anmerkungen:

• indirect taxation subsidies property rights tradable pollution permits buffer stock schemes minimum prices

Anmerkungen:

• these limit production and internalise external costs to the market

Anmerkungen:

• increase production and internalise external benefits

Anmerkungen:

• stabilise prices, increase producer incomes

Anmerkungen:

• help establish the ownership and control of resources in order to manage their use and prevent exploitation

Anmerkungen:

• government intervention leads to an increase in inefficiency and a net welfare loss

1. types

   Anmerkungen:

   • high taxes encourage illegal markets and reduce incentive to work subsidies require funding causing borrowing minimum wage/prices lead to excess supply  planning laws impede market forces