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

any given period, a firm can determine its optimal stock of capital as shown in Figure 15-2. But if the economic environment cha ...

measure of output produced per unit of input used. Two widely used measures of productivity are output per worker and output per ...

Figure 15-3 The Interest Rate and the Firm’s Investment Demand In Figure 15-2 , there is a negative relationship between the pur ...

The Significance of Productivity Growth Long ago, economics was known as the “dismal science” because some of its predictions we ...

The lower the rate of interest, the larger is the firm’s demand for investment. The lower the interest rate, the higher is the p ...

Technological Change Our great-grandparents would have regarded today’s standard of living in most industrialized countries as u ...

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

Many changes in technology are based on scientific discoveries made in such non-profit organizations as universities and governm ...

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

New Techniques Throughout the nineteenth and twentieth centuries, changes in the techniques available for producing existing pro ...

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

aluminum substitutes for steel in a process of change that makes a statistical category such as “primary metals” seem unsatisfac ...

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

New Products New goods and services are constantly being invented and marketed; this is called product innovation. DVDs, smartph ...

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

Firms’ Choices in the Very Long Run Firms respond to market signals that indicate changes in the economic environment. For examp ...

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

activities to Mexico or India, where labour costs are relatively low and hence labour-intensive production techniques remain qui ...

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 ...

Summary ...