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SCARCITY: A pervasive condition of human existence that exists because society has unlimited wants and needs, but limited resources used for their satisfaction. In other words, while we all want a bunch of stuff, we can't have everything that we want. In slightly different words, this scarcity problem means: (1) that there's never enough resources to produce everything that everyone would like produced; (2) that some people will have to do without some of the stuff that they want or need; (3) that doing one thing, producing one good, performing one activity, forces society to give up something else; and (4) that the same resources can not be used to produce two different goods at the same time. We live in a big, bad world of scarcity. This big, bad world of scarcity is what the study of economics is all about. That's why we usually subtitle scarcity: THE ECONOMIC PROBLEM.
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Lesson 19: Money Creation | Unit 2: Fred Returns
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Page: 8 of 23
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The money creation mechanism is a profitable opportunity.- With 10% of his receipts redeemed at any given time Fred can issue up to 1,000 pounds of receipts.
- 100 pounds for the original deposits plus another 900 pounds for loans.
Important points:- Fred has created money: Because his receipts are money, he can create money by making loans.
- The new extra 900 pounds of money is used for investment that promotes economic growth.
A precarious balancing act:- If people redeem more than the 10% of the receipts, Fred is in trouble.
- If so, the receipts become worthless, the money supply shrinks, and the local economy enters a recession.
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AVERAGE FACTOR COST CURVE A curve that graphically represents the relation between average factor cost incurred by a firm for employing an input and the quantity of input used. Because average factor cost is essentially the price of the input, the average factor cost curve is also the supply curve for the input. The average factor cost curve for a firm with no market control is horizontal. The average revenue curve for a firm with market control is positively sloped.
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ORANGE REBELOON
[What's This?]
Today, you are likely to spend a great deal of time touring the new suburban shopping complex trying to buy either several magazines on home repairs or a remote controlled sports car with an air spoiler. Be on the lookout for empty parking spaces that appear to be near the entrance to a store.
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This isn't me! What am I?
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Natural gas has no odor. The smell is added artificially so that leaks can be detected.
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"What gets measured gets done." -- Peter Drucker, educator
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SPO
Strongly Pareto Optimal
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