The Economics Book

99 See also: Supply and demand 108–13 ■ Behavioral economics 266–69 ■ Bank runs 316–21 ■ Global savings imbalances 322–25 INDUST ...

LET THE RULING CLASSES TREMBLE AT A COMMUNIST REVOLUTION MARXIST ECONOMICS ...

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102 A lthough much of economics is concerned with free market economies, it should not be forgotten that for a large part of the ...

103 production gave them the upper hand over the majority of the population, the proletariat. While workers produced goods and s ...

104 MARXIST ECONOMICS With nothing to lose but his chains, a worker symbolically breaks free of his oppressors in a poster comme ...

INDUSTRIAL AND ECONOMIC REVOLUTIONS 105 Karl Marx Born in Trier, Prussia, in 1818, Karl Marx was the son of a lawyer who had con ...

106 THE VALUE OF A PRODUCT COMES FROM THE EFFORT NEEDED TO MAKE IT THE LABOR THEORY OF VALUE T he importance of labor in determi ...

107 If sandcastles are made by labor, why don’t they have any value? Marx’s response was that not everything made by labor has v ...

PRICES COME FROM SUPPLY AND DEMAND SUPPLY AND DEMAND ...

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110 S upply and demand are among the fundamental building blocks of economic theory. The interplay between the amount of a produ ...

111 in short-term markets (such as those for perishable goods), as opposed to long-term ones (such as for gold). He applied math ...

112 SUPPLY AND DEMAND must judge whether it makes sense to open a completely new factory, with the vast additional costs this in ...

113 Therefore, at the start of the day, he decides to market his apples at $1.20. If his sales are going well, he may feel he ca ...

114 YOU ENJOY THE LAST CHOCOLATE LESS THAN THE FIRST UTILITY AND SATISFACTION A ristotle was the first person to observe that to ...

115 See also: The paradox of value 63 ■ The labor theory of value 106–07 ■ Supply and demand 108–13 ■ Risk and uncertainty 162–6 ...

116 WHEN THE PRICE GOES UP, SOME PEOPLE BUY MORE SPENDING PARADOXES I n 1895, British economist Alfred Marshall (p.110) demonstr ...

117 See also: Supply and demand 108–13 ■ Elasticity of demand 124–25 ■ Conspicuous consumption 136 INDUSTRIAL AND ECONOMIC REVOL ...

A SYSTEM OF FREE MARKETS IS STABLE ECONOMIC EQUILIBRIUM ...