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Demand curve is a function of?
Price of related goods
Supply curve is a function of?
Cost of Materials
Vickery (sealed bid)
Dutch (descending bid)
modified Dutch (all get lowest)
what is the deadweight loss from over supply and under supply?
over and under supply = deadweight loss to both producer and consumer
slope of D & S depends who bears most.
How to calculate GDP?
income approach (total income from households + bus)
expenditure approach (total amount spent on goods and services produced... 2 methods- sum of value added or value of final product)
GDP = C + I + G + (X-M)
Types of income
National Inc - sum of income received by all factors of productions that go into final output
Persona Inc - pretax income households
Disposable Inc - PI after taxes
GDP = NI + CCA (dep of phys capital) + stat discrep (income approach vs expend approach)
Relationship between fiscal balance etc
(G-T) = (S-I)-(X-M)
CFA Economics Level 1 2013