The Economics Book

299 only firms that are part of this process. Governments finance their national debts, and consumers borrow large sums to buy c ...

300 An agent shows a couple around a home. In the US housing boom banks were lending on the expectation of rising prices. People ...

CONTEMPORARY ECONOMICS 301 incomes fell, and the demand for new houses weakened. As house price increases began to slow, the fir ...

302 See also: Supply and demand 108–13 ■ Depressions and unemployment 15 4 – 61 ■ Market information and incentives 208–09 U S e ...

303 See also: Depressions and unemployment 154–61 ■ The Keynesian multiplier 164 – 65 ■ Rational expectations 244–47 ■ Incentive ...

304 I t is usually easy to decide where to buy bread or soap. There are many supermarkets, and they are easy to find. But what a ...

CONTEMPORARY ECONOMICS 305 costs money. The greater the search costs, the wider the range of wages for a similar job will be. Pe ...

306 THE BIGGEST CHALLENGE FOR COLLECTIVE ACTION IS CLIMATE CHANGE ECONOMICS AND THE ENVIRONMENT E conomic development and prospe ...

307 See also: Provision of public goods and services 46–47 ■ Demographics and economics 68–69 ■ External costs 137 ■ Development ...

308 ECONOMICS AND THE ENVIRONMENT be considered in economic terms as a public good (pp.46–47), which tends to be undersupplied b ...

CONTEMPORARY ECONOMICS 309 amount of pollution would be emitted because polluters would face the full costs of their actions. Th ...

310 GDP IGNORES WOMEN GENDER AND ECONOMICS G ross domestic product (GDP) is the most commonly cited economic statistic. It provi ...

311 Many kinds of work are performed mostly by women, including child care. They are vital to the economy but do not count towar ...

312 See also: Protectionism and trade 34–35 ■ Comparative advantage 80–85 ■ Economies of scale 132 ■ Market integration 226–31 E ...

313 See also: The emergence of modern economies 178–79 ■ Institutions in economics 206–07 ■ Economic growth theories 224–25 E co ...

314 WE CAN KICK-START POOR ECONOMIES BY WRITING OFF DEBT INTERNATIONAL DEBT RELIEF IN CONTEXT FOCUS Growth and development KEY T ...

315 In South Africa, high debts were incurred by the apartheid regime. Many argue that the debts from the apartheid era should b ...

PESSIMISM CAN DESTROY HEALTHY BANKS BANK RUNS ...

...

318 D uring the Great Depression of the early 1930s some 9,000 US banks failed—a third of the total. However, it was not until t ...