Friday  January 18, 2019
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 YIELD: The rate of return on a financial asset. In some simple cases, the yield on a financial asset, like commercial paper, corporate bond, or government security, is the asset's interest rate. However, as a more general rule, the yield includes both the interest earned from an asset plus any changes in the asset's price. Suppose, for example, that a \$100,000 bond has a 10 percent interest rate, such that the holder receives \$10,000 interest per year. If the price of the bond increases over the course of the year from \$100,000 to \$105,000, then the bond's yield is greater than 10 percent. It includes the \$10,000 interest plus the \$5,000 bump in the price, giving a yield of 15 percent. Because bonds and similar financial assets often have fixed interest payments, their prices and subsequently yields move up and down as economic conditions change.
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 Lesson Contents Unit 1: Getting Started Overview Assumptions Limitations Unit 1 Summary Unit 2: The Schedule Set Up Opportunity Cost Changing Cost Unit 2 Summary Unit 3: The Curve Plot Connecting Points Slope and Cost Shape Unit 3 Summary Unit 4: Analysis Full Employment Unemployment Growth Resource Quantity and Quality Unit 4 Summary Unit 5: Investment Overview Bundle Choices: A Bundle Choices: E Bundle Choices: I Scarcity Unit 5 Summary Course Home
Production Possibilities

In this lesson we'll take a trip through production possibilities. Production possibilities is a handy little analysis that lets us consider what the economy is capable of doing, production-wise. We'll see have a production possibilities curve, the cornerstone of this analysis, is derived and how it can be used to understand several important concepts, including opportunity cost, unemployment, investment, and economic growth.

• The first unit begins this lesson by laying the foundations for production possibilities analysis, especially assumptions and limitations.
• We turn out attention in the second unit to the production possibilities schedule, a simple table that gives us a first shot on this analysis.
• The production possibilities curve is then derived from the production possibilities schedule in the third unit, with particular emphasis on the importance of opportunity cost
• In the fourth unit, we make use of the production possibilities analysis for an understanding of three important concepts: full employment, unemployment, and economic growth.
• And lastly, the fifth unit uses production possibilities to analyze investment in capital goods as a means of achieving economic growth.

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INFERIOR GOOD

A good for which a change in income causes an opposite change in demand. That is, an increase in income causes a decrease in demand and a decrease in income causes an increase in demand. The income elasticity of demand for an inferior good is negative. An inferior good is one of two alternatives falling within the buyers' income demand determinant. The other is a normal good.

 BROWN PRAGMATOX[What's This?] Today, you are likely to spend a great deal of time waiting for visits from door-to-door solicitors wanting to buy either clothing for your kitty cats or a set of luggage without wheels. Be on the lookout for slow moving vehicles with darkened windows.Your Complete Scope
 In his older years, Andrew Carnegie seldom carried money because he was offended by its sight and touch.
 "Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover."-- Mark Twain
 NEDONational Economic Development Office
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