Market: group of buyers and sellers
Competition: multiple sellers for the same product
more buyers and sellers more competitive it is
Competitive Market: market in which there are many buyers and many sellers
Quantity demanded = what people are
1. People face trade offs
A. Trading one goal for another
2. The cost of something is what you give up to get it
A. opportunity cost is the cost of the next best alternative
3. Rational People think at the margins
A. People do the best they can to achieve
Explain the historical evolution of economic theory.
Explain the main views of classical economist.
Explain how Keynes’ views differed from the classical economic schools.
Identify modern economic approaches such as monetarlsm and su
O r g a n i z a ti o n o f E a s t e r n C a r i b b e a n S t a t e s ( O E C S )
The Organization of Eastern Caribbean States came into being on 18 th June 198, when seven eastern Caribbean countries
signed a treaty agreeing to cooperate with each other
C a r i b b e a n C o m m u n i t y. ( C A R I C O M )
The Treaty of Chaguramas was signed on 4th July 1973, instituting the Caribbean Community. The member countries of
Antigua and Barbuda
C a r i b b e a n a n d C a n a d i a n A s s o c i a ti o n .
The Caribbean-Canada Trade Agreement, also known as CARIBCAN, is a preferential trade agreement between Canada
and Caribbean countries. It came into effect in June 1986. CARIBCAN en
A f r i c a n , C a r i b b e a n a n d P a c i fi c . ( A C P )
The African, Caribbean and Pacific Group of State (ACP) is an organization forms by the Georgetown Agreement in 1975.
There are seventy nine (79) countries belonging to the African, Caribbea
externality- uncompensated impact on a bystander
Externalities cause markets to be inefcient and fail to maximize total surplus
When impact is adverse- negative externalities
when positive - positive externalities
Elasticity is used to measure the level of response for quantity demand or
supplied to the price
Determinates of Price Elasticity of Demand
Availability of close substitutes: the more substitutes available the more
imperfect competition - those market structures that all between perfect
types of imperfectly
Markets that have some features of competition and some features of
there are many rms competing or the same group of customers
Public goods and Common resources
The best things in life are free.
free goods provide a special challenge for economic analysis
Most goods in our economy are allocated in markets.
When goods are available free of charge, the market forces that normall
How monopolies make production and pricing decisions
Monopoly vs Competition
is the sole producer
Faces a downward-sloping demand curve
Is a price maker
Reduces price to increase sales
Is one of many producers
Faces a hori
Today, Taxes account for up to a third of the average american's income
2/3 of money comes from taxes
largest source of revenue for the federal government is individual income
marginal tax rate is tax rate applied to each addition
J CONSUMPTION EXPENDITURE
Chapter 30 i 1 vertical axis at a positive consumption level of $80 m, indicating that even
when income is zero, there is still consumption.
Table 30.1 Schedule of income, consumption and savings (in Him)-
Income, Y Consumption