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ADAM SMITH: A Scottish professor (born 1723, died 1790) who is considered the father of modern economics for his revolutionary book, entitled An Inquiry into the Nature and Causes of the Wealth of Nations published in 1776.
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Lesson 9: Macro Basics | Unit 2: Macro Problems
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Page: 6 of 16
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Inflation is a stability problem that typically results because the four macro sectors of the economy demand more goods that the economy can produce. Inflation problems: - Future prices become increasingly uncertain.
- Financial assets like money, bank accounts, stocks and bonds decrease in value with higher prices.
- Income and wealth are haphazardly redistributed because prices change at different rates.
- Hyperinflation can reduce production because money becomes almost worthless and people revert to barter exchanges.
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ECONOMIC PROFIT The difference between the total opportunity cost of production and the total revenue received by a firm. Economic profit is what remains after ALL opportunity cost associated with production (including a normal profit) is deducted from the revenue generated by the production. Economic profit is one of three alternative notions of profit. The other two are accounting profit and normal profit.
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YELLOW CHIPPEROON
[What's This?]
Today, you are likely to spend a great deal of time wandering around the shopping mall seeking to buy either car battery jumper cables or a dozen high trajectory optic orange golf balls. Be on the lookout for vindictive digital clocks with revenge on their minds.
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A lump of pure gold the size of a matchbox can be flattened into a sheet the size of a tennis court!
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"The only place success comes before work is in the dictionary. " -- Vince Lombardi
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TR
Total Revenue
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