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Introduction
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Economics Part A
Introduction
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תוכן העניינים
Introduction
Introduction
Fundamentals of Micro-Economics Course Objectives
Introduction to Economics
What is a Curve
Naming of Curves
The Shape of the Curve Illustrates the Point
Forming the Curve – Explained
Micro-economics – Macro-economics
Declining Marginal Output and Increasing Marginal Costs
Diminishing Marginal Returns Explained
The Meaning and Proper Use of Marginal Output
Increasing Marginal Cost
The New Carpenters Production Costs
Production Possibilities Curve
Background to the Production Possibilities Curve
Shape of the Production Possibilities Curve With an Illustration
Under-use of Resources
Opportunity Cost Definition
Three Types of Costs
Other Examples of Marginal Cost
Shifts in the Production Possibilities Curve
Causes of Improvement in Manufacturing Capability
Causes of Decline in Manufacturing Capability
Marginal Cost
Production Possibilities Curve – A Summary
The Purpose of the Scenarios
Comparative Advantage
Comparative Advantage Explained With an Illustration
Barter System Explained
Trade Between Countries Using the Barter System
How to calculate the price
Understanding What is Absolute Advantage
Comparative Advantage Proper Use
Consumption Possibilities Curve Explained
Definition of Gross Domestic Product
Gross Domestic Product and National Accounts
GDP – Gross Domestic Product
Calculating Gross Domestic Product for a Country
The Difference Between Capital Goods and Consumer Goods
Methods of Calculating GDP or Gross Domestic Product
GDP is also the national income
Calculating GDP for a Country with Imports
GDP Calculation Process
The Uses of GDP (Gross Domestic Product)
The effect of Imports
National Accounts
Gross Investment and Net Investment
GDP vs. NDP
Capital Investments Constitute a Nations Savings
The Sources and Uses Form
Understanding The PPC Curve
GDP and NDP
National Accounts – Summary
Demand and Supply
Market Supply Curve – Explanation
Demand Curve Definition
Market Equilibrium Price Explained
Relationships Between Types of Products
Elasticity of the Supply and Demand Curve
The Connection between Price and Revenues
Government Influence on the Market Price
Supply and Demand in the Rest of the World
The Household
Introduction to Household
Understanding What is Lorenz Curve
Understanding Gini Index – What is it?
Progressive Taxation, Regressive Taxation and Flat Tax
The Consumption Curve Explained
The Central Bank
The Function of Commercial Banks
What Money Is
Bank Lending
The process by which the bank increases the money supply
The Reserve Ratio
How To Make the Money grow?
Bankruptcy
Reserve Ratio and Money Supply
The Effect of Michael’s Gift According to a Different Scenario
Bank Balance Sheet Format
Deposit Multiplier and Loan Multiplier
Understanding The Monetary Base
The Central Bank
Appendix A- The Financial Statements of a Firm
Income Statement Example – Simplified
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Introduction
Production Possibilities Curve
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