Demand and Supply at Work in Labor Markets
Markets for labor have demand and supply curves, just like markets for goods. The law of demand applies in labor markets this way: A higher salary or wage—that is, a…
Demand, Supply, and Efficiency
The familiar demand and supply diagram holds within it the concept of economic efficiency. One typical way that economists define efficiency is when it is impossible to improve the situation…
Demand, Supply, and Equilibrium in Markets for Goods and Services
Demand for Goods and Services Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price.…
The Production Possibilities Frontier and Social Choices
This section of the chapter will explain the constraints faced by society, using a model called the production possibilities frontier (PPF). There are more similarities than differences between individual choice…
Marginal Decision-Making and Diminishing Marginal Utility
The budget constraint framework helps to emphasize that most choices in the real world are not about getting all of one thing or all of another; that is, they are…
How Economies Can Be Organized: An Overview of Economic Systems
Think about what a complex system a modern economy is. It includes all production of goods and services, all buying and selling, all employment. The economic life of every individual…
Microeconomics and Macroeconomics
Economics is concerned with the well-being of all people, including those with jobs and those without jobs, as well as those with high incomes and those with low incomes. Economics…
Macroeconomics: Currency
For citizens of different countries to conduct trade, they have to buy and sell each other's currencies. The price of a nation's currency, expressed as an amount of a second…
Macroeconomics: International Trade
International trade is the exchange of goods, services and capital across national borders. It is a multi-trillion dollar activity, central to the GDP of many countries, and it is the…
Macroeconomics:Taxes and Debt
Debt and Deficits From a macroeconomic perspective, government debt can be thought of as future spending brought forth into present time. Governments incur debt when their spending desires exceed their…
