Microeconomics (Christopher T.S. Ragan) (z-lib.org)

1 Positive investment may not add to the firm’s capital stock if it is just enough to replace obsolete capital. In this discussi ...

Paul Samuelson was born in Gary, Indiana, the son of a drugstore owner. He received his Ph.D. in economics in 1941 from Harvard ...

The Economy’s Demand for Investment The economy’s overall demand for investment is determined from the demands of individual fir ...

Though Samuelson made major contributions to many branches of economics, three are particularly notable. First, he showed how th ...

15.4 The Supply of Capital The supply of financial capital is determined by households’ saving decisions. Saving is the differen ...

Common Abbreviations Used in the Text ...

expenditures. Young couples, for example, save in order to accumulate enough funds for a down payment on a house. Couples with y ...

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For any given level of current income, households tend to save less when their expected future income is higher. If people antic ...

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How does an increase in the interest rate affect households’ desire to save? The interest rate is the “price” of financial capit ...

Economists on record ... On the economic problem ... The peculiar character of the problem of a rational economic order is deter ...

Figure 15-4 The Economy’s Supply of Saving The Economy’s Supply of Saving The economy’s supply of saving is shown in Figure 15-4 ...

On “balance” in economics ... There is a long-standing tension in economics between belief in the advantages of the market mecha ...

constant) leads to a decrease in households’ desired saving at any given interest rate and thus causes the supply curve to shift ...

On choosing between theories ... ... any theory has implications ... and it is true that most of us would not value the theory i ...

15.5 Equilibrium in the Capital Market We have discussed how the economy’s demand for capital is related to the interest rate; a ...

Ronald Coase , 1991 Nobel Laureate “How Should Economists Choose?,” in Essays on Economics and Economists (Chicago: The Universi ...

given market price for the product they sell, but that price is determined in equilibrium through the interaction of demand and ...

Glossary factors of production Resources used to produce goods and services; frequently divided into the basic categories of lan ...