economics midterm review

economics midterm review - Consumption is a result of a...

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20:18 1. economics- study of scarcity
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20:18 PHX AQ= 5cents HQ= 10cents 2:1 SHIP COST 5cents 5cents NY 10cents 15cents 1.5:1 Law of Demand= 1) more AQ then HQ sold, because in both places AQ is less in price then HQ 2) more overall (HQ + AQ) total oranges in Phoenix 3) Greater percent of oranges in NY will be HQ Babysitter Problem: 2 sets of couples- identical  Average Night Big Night Couples w/o children $50 $200    4:1 Baby 50 50    Couples w/ child 100 200   2.5:1  Adding workers to department store Friedman: Disposable income is the income that you pay at your disposal after the gov deduction
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Unformatted text preview: Consumption is a result of a permanent income If you are going to get the people to spend, you will need permanent tax cuts Ticket scalping Happel in favor of them- thinks they help tickets sales and puts money in owners pockets Ticket is a bearer instruments, who owns it uses it Ticket is a license Make an experiment for putting gall scalpers in one place. It worked out well free trade 20:18 20:18...
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economics midterm review - Consumption is a result of a...

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