By Roger LeRoy Miller
Miller, Economics Today: The Macro View 16e continues to be devoted to delivering scholars with dialogue and assurance of the most up-tp-date matters and events. this article appeals to modern-day varied pupil inhabitants via offering principles sincerely, at an obtainable point, and within the context of newsworthy applications.
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Additional info for Economics Today: The Macro View
Rationality assumption The assumption that people do not intentionally make decisions that would leave them worse off. 6 PART 1 ■ INTRODUCTION Take the example of driving. When you consider passing another car on a two-lane highway with oncoming traffic, you have to make very quick decisions: You must estimate the speed of the car that you are going to pass, the speed of the oncoming cars, the distance between your car and the oncoming cars, and your car’s potential rate of acceleration. If we were to apply a model to your behavior, we would use the rules of calculus.
1-6. Recently, a bank was trying to decide what fee to charge for “expedited payments”—payments that the bank would transmit extra-speedily to enable customers to avoid late fees on cable TV bills, electric bills, and the like. To try to determine what fee customers were willing to pay for expedited payments, the bank conducted a survey. It was able to determine that many of the people surveyed already paid fees for expedited payment services that exceeded the maximum fees that they said they were willing to pay.
Government plays a much larger role in the nation’s economy than it did before the Great Recession of the late 2000s. A prominent example is the level of government involvement in the nation’s banking industry. Prior to the late 2000s, owners of private banks decided how much to pay the managers that they hired. Now government agencies overrule salary offers that bank owners extend to prospective managers and adjust the salaries of existing managers. S. S. banks. S. government exercises considerably more direct control over financial companies than it did before the onset of the Great Recession.