Law of Diminishing Marginal Utility
Law of Diminishing Marginal Utility
Q – quantity of good
TU – total utility
MU – marginal utility (ΔTU)
Author Archive
The Macroeconomics Circulation Flowchart
From a macroeconomic perspective, households, government and firms (corporations) are the 3 fundamental players of money and resources. This flowchart diagram below illustrates how they interact and exchange resources.
Circular flow of income
Firms and households interact and exchange resources in the big Circular Flow of Income illustrated by the diagram below.
2007 GDP Nominal Per Capita World Map (IMF)
2007 GDP Nominal Per Capita World Map
Data source: International Monetary Fund
Who gives transfer payments?
Transfer payments are given by government of various levels to under-privileged society members like unemployed workers, the elderly who’s unable to maintain a decent life by inability to work and such.
Current GDP, GNP of United States and other countries
As of the most up to date data from authoritative sources such as International Monetary Fund, World Bank and CIA World Fact Book, below is the worldwide nations ranked by GDP. United States is ranked second immediately after EU with a GDP of more than 13,000 billions in 2007. Read the rest of this entry »
What are the Causes of Economic Recession
What is an economic recession?
In a perspective as broad as nation wide, or macroeconomically, a recession is a slightly obvious decline in Gross Domestic Product (GDP, just think of it as the total wealth or wellness all people within a nation produce within a given year) compared to previous quaters, or in a business cycle. A decline is only regarded as a recession if it has lasted more than 2 quarters. Also, the decline should not be too apparent as to be an economic depression (approx. 10% drop of GDP) or even more devastating as to be a economic collapse.
Resource circulation in the macroeconomic loops
This flow-chart diagram illustrates how governments, households, corporations and international entities interact in 3 major markets to run the economy as a whole: workforce market, financial market and commodity market.
