Showing posts with label Policy. Show all posts
Showing posts with label Policy. Show all posts

Thursday, 31 March 2016

Fertility Rate + Birth Rate, US & Canada

Current (2015) rate: 1.87 children born/woman.
Minimum population replacement rate: 2.1. 

Wednesday, 23 March 2016

TOTD: Terms of Trade

TERMS OF TRADE = price of exports / price of imports = 
Px / Py

The rate at which goods are traded, either between individuals or between nations. It is the quantity of one good exchanged per unit of another good. The terms of trade is essentially the price. But the price is stated in terms of the quantity of another good. Like any market price, the terms of trade is based on what the buyers are willing to pay and what the sellers are willing to accept. The terms of trade between any two countries is based on the relative opportunity cost in each country.

via amosweb

Tuesday, 15 March 2016

TOTD: Pareto Principle

The Pareto principle (also known as the 80–20 rule, the law of the vital few, and the principle of factor sparsity)[1] states that, for many events, roughly 80% of the effects come from 20% of the causes.[2] Management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who, while at the University of Lausanne in 1896, published his first paper "Cours d'économie politique." Essentially, Pareto showed that approximately 80% of the land in Italy was owned by 20% of the population; Pareto developed the principle by observing that 20% of the peapods in his garden contained 80% of the peas.[3]


via Wiki

Monday, 14 March 2016

TOTD: Law of Diminishing Marginal Utility

LAW OF DIMINISHING MARGINAL UTILITY:
A principle stating that as the quantity of a good consumed increases, eventually each additional unit of the good provides less additional utility--that is, marginal utility decreases. Each subsequent unit of a good is valued less than the previous one. The law of diminishing marginal utility helps to explain the negative slope of the demand curve and the law of demand.
via amosweb

Friday, 11 March 2016

TOTD: International Trade: Heckscher–Ohlin Model

Basic situation: Two identical countries (A and B) have different initial factor endowments. Autarky equilibrium (A^A, A^B): no trade, individual production equals consumption. Trade equilibrium: both countries consume the same (C^A = C^B), especially beyond their own Production–possibility frontier; production and consumption points are divergent.
Source: https://en.wikipedia.org/wiki/Heckscher%E2%80%93Ohlin_model

Sunday, 28 February 2016

Tuesday, 26 January 2016