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GROSS DOMESTIC PRODUCT, WELFARE: Gross domestic product (GDP) is the total market value of all goods and services produced within the political boundaries of an economy during a given period of time, usually one year. GDP is intended to measure the nation's production of wants-and-needs satisfying goods and services. While it provides an indication of how far the economy has come on the long road to battling the ever-present scarcity problem, it is NOT a direct measure of the nation's welfare or well-being. GDP is certainly a big component of the well-being of the country, but not the ONLY component.
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Lesson 18: Monopoly | Unit 3: Output
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Page: 15 of 30
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- The basic business motivation: profit maximization.
- Profit maximization is the presumption that firms make decisions and undertake production to achieve the highest possible level of economic profit, which is the difference between total revenue and total opportunity cost (including a normal profit).
- The two key factors are, of course, total revenue and total cost.
- The total revenue generated by a firm depends on the quantity of output produced.
- The total cost incurred by a firm also depends on the quantity of output produced.
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ABSTRACTION Simplifying the complexities of the real world by ignoring (hopefully) unimportant details while doing economic analysis. Abstraction is an essential feature of the scientific method. Hypothesis verification, model construction, and comparative static analysis are not possible without abstraction.
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YELLOW CHIPPEROON
[What's This?]
Today, you are likely to spend a great deal of time going from convenience store to convenience store wanting to buy either a rim for your spare tire or decorative celebrity figurines. Be on the lookout for poorly written technical manuals.
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Three-forths of the gold mined each year is used to manufacture jewelry.
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"Recipe for success. Study while others are sleeping; work while others are loafing, prepare while others are playing, and dream while others are wishing." -- William A. Ward
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ARMA
Autoregressive Moving Average
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