ECN 2010 Study Guide - Final Guide: Federal Reserve System, Proportional Tax, Gross Domestic Product
Document Summary
Wealth of the nations laid the intellectual framework that explained the free market advocate of laissez faire. Resources are limited, but human wants are unlimited. Durable, portable, divisible, uniformity, stability of value, scarcity, and acceptability. Two products for which the demand schedules are related to each other. Many owners (share of ownership called stock), difficult start-up, limited liability, double taxation. Example: an increase in the cost of petroleum pushes up the price of gasoline. A table that lists the quantity of goods one consumer will buy at different prices. The demand pulls up the price of the shoe. Study of how people choose to use scarce resources to satisfy their wants. A change of price leads to a relatively larger change in quantity demanded. When the demand is equal to the supply in the market. Federal deposit insurance corporation (fdic) insures bank deposits. Supervises the banking system and regulates money supply.
