By Arthur O'Sullivan, Steven Sheffrin, Stephen Perez
For ideas of Macroeconomics classes. Macroeconomics: rules, functions, and instruments, is usually appropriate for economists, monetary analysts and different finance professionals.
Questions that force curiosity, purposes that illustrate thoughts, and the instruments to check and solidify comprehension.
Students come into their first Economics direction considering they'll achieve a greater figuring out of the economic climate round them. regrettably, they generally go away with many unanswered questions. to make sure scholars actively internalize economics, O'Sullivan/Sheffrin/Perez use chapter-opening inquiries to spark curiosity on very important financial suggestions, purposes that vividly illustrate these innovations, and chapter-ending instruments that try and solidify knowing.
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Additional resources for Macroeconomics: Principles, Applications, and Tools
Should a school district increase teachers’ salaries by 20 percent? e. Would an increase in teachers’ salaries improve the average quality of teachers? 2 Economic Analysis and Modern Problems What is the economist’s solution to the congestion problem? a. Require people to carpool. b. Charge a toll during rush hour. c. Require people to move closer to their jobs. d. No economist would suggest any of the above. Some recent work by economists on the sources of growth suggests that institutions such as the and the play key roles in economic growth.
Us in g Mic r oeconom ics to Und er stand M ar kets an d Predict C hanges One reason for studying microeconomics is to better understand how markets work and to predict how various events affect the prices and quantities of products in markets. In this book, we answer many practical questions about markets and how they operate. Let’s look at a practical question that can be answered with some simple economic analysis. How would a tax on beer affect the number of highway deaths among young adults?
We can also explore the trade-offs associated with various public policies. Let’s look at a practical question about public policy. Like other innovations, prescription drugs are protected by government patents, giving the developer the exclusive right to sell a new drug for a fixed period of time. Once the patent expires, other pharmaceutical companies can legally produce and sell generic versions of the drug, which causes its price to drop. Should drug patents be shorter? Shortening the patent has trade-offs.