By William A. McEachern

Carry economics to lifestyles with wealthy, sensible examples that make innovations transparent and exciting. modern ECONOMICS blends financial services and academic insights with finished content material, sound tutorial layout, and broad print and media instructing instruments. This re-creation now contains chapters masking own finance, together with info on coping with funds and being a accountable patron.

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D. S. 1%. e. The minimum wage ought to be increased. 6. Tomás bought two pairs of shoes for $60 each. He chose not to purchase a third pair at this price. What do you know about the marginal value of a third pair of shoes for Tomás? Graphing Exercise Xtra! com/ school/econxtra 7. Latischa works for a business that produces pocket calculators. She spends $100 on phone service from the $2,000 she earns each month. She also pays rent of $800 per month. Draw and label a simple circularflow model. Use the figure to the right as a guide.

One of the best ways to understand an economic event is to look at the factors that caused it to take place. An important benefit of learning about past economic events is the insight you will gain into what might happen if similar events take place in the future. In 1973, for example, war broke out between Israel and some of her neighboring Arab states. As a result, the flow of crude oil from the Middle East to the United States and other nations was reduced by as much as 50 percent. Oil is a basic natural resource used to produce many goods and services.

Corn is a good because it is tangible—something you can see, feel, and touch. It requires scarce resources to produce, and it satisfies human wants. This book, the chair you are sitting in, the clothes you are wearing, and your next meal are all goods. Services One hundred musicians, musical instruments, chairs, a conductor, a musical score, and a music hall combine to produce the service: Beethoven’s Fifth Symphony. The performance of the Fifth Symphony is a service because it is intangible—that is, not physical—yet it uses scarce resources to satisfy human wants.

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