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ACCELERATOR: The ratio between investment expenditures and the change in gross domestic product. This is based on the notion that business investment depends on the rate of growth of aggregate output. If the economy is expanding, in other words, then the business sector invests in more capital goods to produce the extra output needed. This accelerator effect modifies and magnifies the simply multiplier effect based on the induced consumption and the marginal propensity to consume.
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Lesson 1: Economic Basics | Unit 1: Economics
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An understanding of economics also involves:Scarcity. We have limited resources, but unlimited wants and needs. The study of economics is essentially the study of scarcity.Opportunity Cost. Using resources for one alternative prevents using them for another. Opportunity cost is the highest valued alternative.Analysis. Economics is an analytical discipline that answers 'What if...?' questions.
Scarcity dictates that we must answer the three basic questions of allocation are:- What? What goods and services will be produced with society's resources?
- How? How will society's resources be used to produce the goods and services?
- For whom? Who receives the goods and services produced with society's resources?
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NUMBER OF BUYERS, DEMAND DETERMINANT The number of buyers willing and able to buy a good, which is assumed constant when a demand curve is constructed. The number of buyers is one of five demand determinants that shift the demand curve when they change. The other four are buyers' income, buyers' preferences, other prices, and buyers' expectations.
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One of the largest markets for gold in the United States is the manufacturing of class rings.
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"It is very rare that you meet with obstacles in this world (that) the humblest man has not the faculties to surmount. " -- Henry David Thoreau, philosopher
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ABA
American Bankers Association, Associate in Business Administration
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