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INFLATION PROBLEMS: Two notable problems are associated with inflation: uncertainty and haphazard redistribution. Inflation, especially inflation that varies from month to month and year to year, makes long-term planning quite difficult. Prices, wages, taxes, interest rates, and other nominal values that enter into consumer, business, and government planning decisions can be significantly affected by inflation. Moreover, inflation tends to redistribute income and wealth in a haphazard manner; some people win and some people lose. But this redistribution might not that desired by society, failing to promote any of the basic economic goals of efficiency, equity, stability, growth, or full-employment.

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Lesson 14: Production | Unit 2: Production Measures Page: 6 of 25

Topic: Total Product <=PAGE BACK | PAGE NEXT=>

  • A definition: total product.

  • Total product is the total quantity of output produced by a firm for a range of different variable input quantities.
  • Total product is simply the total amount of output produced in a given period.

  • In the short run, total product is relation between total output and the quantity of the variable input.

  • The Pretzel Haven's hourly production of pretzels is presented in this table.

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EURODOLLARS

Deposits denominated in U.S. dollars in banks located outside of the United States or domestic branches of foreign banks. While such deposits originated with European banks, hence the "Euro" part of the name, they can be held by banks from any foreign country. Eurodollars are an attractive investment because they are NOT in U.S. banks and thus are NOT subject to U.S. banking regulations. Eurodollars, along with other institutional investment near monies, are added to M2 to derive M3.

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Today, you are likely to spend a great deal of time at a garage sale trying to buy either a coffee cup commemorating the 2000 Olympics or a birthday gift for your grandmother. Be on the lookout for empty parking spaces that appear to be near the entrance to a store.
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The first paper currency used in North America was pasteboard playing cards "temporarily" authorized as money by the colonial governor of French Canada, awaiting "real money" from France.
"It is not because things are difficult that we do not dare; it is because we do not dare that they are difficult. "

-- Seneca, statesman, dramatist, philosopher

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