What is Modern Monetary Theory? Modern Monetary Theory (MMT) holds the national government of a large country that controls its own currency: -can spend as much as it wants -can create (“print”) all the money needed -can raise taxes to control the inflation created … Chat GPT: Modern Monetary Theory (MMT) is an economic framework that emphasizes the ways in which a government that issues its own currency can manage the economy. Here are some key points of MMT: Monetary Sovereignty: MMT applies to countries that control their own currency, like the U.S. with the dollar or Japan with the yen. These countries can issue currency freely and are not constrained by gold or foreign currency reserves. Government Spending: MMT suggests such governments can never "run out of money" the way businesses or individuals can. They can create more money to finance deficits. Role of Taxes: Taxes are not needed to fund spending but serve other purposes like controlling inflation, redistributi...
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Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 5 Firm Behavior and the Organization of Industry Chapter 13 of 36 The Costs of Production Section 18 of 22 … Whenever marginal cost (MC) · is less than average total cost (ATC), ATC is falling · is greater than ATC, ATC is rising This can be seen when comparing columns 7 and 8 in Table 2 and MC and ATC curves on Figure 4. This relationship between MC and ATC means the MC curve crosses the ATC curve at the ATC minimum point. … As the MC rises · at low levels of output, MC is below ATC, so ATC is falling · as level of output increases the two curves cross · at high levels of output, MC is above ATC, so ATC is rising Note on Table 2 and Figure 4, when increasing quantity from 4 to 7 · ATC moves from $1.35 down to $1.30 then up to $1.33 · MC moves from $1.10 to $1.50 · ATC and MC intersect at $1.30, between quantity 5 and 6 … … intersection point kōsa ten 交差点
Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 5 Firm Behavior and the Organization of Industry Chapter 13 of 36 The Costs of Production Section 17 of 22 … Figure 4, Conrad's average total cost (ATC) curve is U-shaped. Table 2, ATC is the sum of · average fixed cost (AFC) · average variable cost (AVC) … AFC always declines as output increases, because the total fixed cost, here $3.00, is spread over a larger number of units AVC typically increases as output increases because of diminishing marginal product. At a low level of output such as 2 cups per hour ATC is very high, $1.90 Even though AVC is low, at 2 cups $.40 AFC is high, $1.50, because the $3.00 fixed cost is spread over only 2 units … Increasing quantity from 6 to 7 units · AFC decreases by $0.07, from $0.50 to $0.43 · AVC increases by $0.10, from $0.80 to $0.90 · ATC rises by the difference of $0.03, from $1.30 to $1.33 Increasing quantity from 7 to 8 units · AFC decreases by $0.05, fro...
Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 5 Firm Behavior and the Organization of Industry Chapter 13 of 36 The Costs of Production Section 16 of 22 … Per Figure 4-MC and Table 2 Conrad's Coffee Shop marginal cost rises with the quantity of output produced. The cost of producing one more unit than before increases with each additional unit produced. In this case, a constant increase of $0.20 for each additional unit, per Table 2 column 8. This marginal cost increase is because of the property of diminishing marginal product. … When Conrad produces a small quantity of coffee he has few workers and much of his equipment is not in constant use Because he can easily put these idle resources into use the marginal cost of an extra cup of coffee is small. But when Conrad produces a large quantity of coffee his shop is crowded with workers and most of his equipment is constantly in use. He can produce more coffee by adding workers, but · t...
Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 5 Firm Behavior and the Organization of Industry Chapter 13 of 36 The Costs of Production Section 15 of 22 … Graphs of average costs and marginal cost are useful when analyzing firm behavior. Figure 4 is a graph of Conrad's costs from Table 2 data. · the horizontal axis shows the quantity of output the firm produces · the vertical axis shows costs The graph plots four cost curves · Average Total Cost (ATC) · Average Fixed Cost (AFC) · Average Variable Cost (AVC) · Marginal Cost (MC) For example, at 5 cups of coffee per hour ATC = $1.30 AFC = $0.60 AVC = $0.70 MC = $1.20 We will examine three main features · shape of the MC curve · shape of the ATC curve · relationship between MC and ATC … … five cups of coffee per hour ichijikan atari kōhī gopai 一時間あたりコーヒー五杯
The Myth of The Goodness of The 1950s Eisenhower 90 Percent Income Tax Rate Mostly from article: The Good Ol' Days: When Tax Rates Were 90 Percent - Andrew Syrios Bernie Sanders has noted “When radical, socialist Dwight Eisenhower was president, the highest marginal tax rate was 90 percent.” How much the rich were actually paying? Back in the 1950s, the government wasn’t actually collecting any more in tax revenue as a percentage of GDP than now. There’s something called Hauser’s Law, which states there is a maximum threshold on how much the government can tax out of its population. Figure A shows a history of income tax receipts compared to the top marginal tax rate. … No matter what the rate has been, the tax revenues have pretty much been the same. Tax receipts from personal income taxes have consistently been between 7 and 9 percent. In 2014, they were 8.1 percent. (In 2024, federal revenue received from personal income taxes was $2.43 trillion / $24.86 trillion GDP = 10 perc...
Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 5 Firm Behavior and the Organization of Industry Chapter 13 of 36 The Costs of Production Section 14 of 22 … Figure 4 - Conrad's Average Cost and Marginal Cost Curves Marginal cost MC is the increase in total cost TC that occurs when producing an additional unit of output quantity Q. MC always = ΔTC Average total cost ATC is the cost of one unit of output, TC/Q … Figure 4 shows for Conrad's Coffee Shop · Average Total Cost (ATC) · Average Fixed Cost (AFC) · Average Variable Cost (AVC) · Marginal Cost (MC) These curves are drawn by graphing the Table 2 data. These cost curves show three features typical of many firms · MC rises with the quantity of output · ATC curve is U-shaped · MC curve crosses the ATC curve at the minimum of ATC, on Table 2 $1.30 at quantity of 5 produced … … average cost and marginal cost heikin hiyō to genkai hiyō 平均費用と限界費用
Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed. PART 5 Firm Behavior and the Organization of Industry Chapter 13 of 36 The Costs of Production Section 13 of 21 ... Table 2 column 8 marginal cost shows the amount column 2 total cost rises when the firm increases production by 1 unit of output. Note since column 3 fixed cost does not change, column 2 total cost increases by the same amount as column 4 total variable cost. … If Conrad increases production from 2 to 3 cups · total cost rises from $3.80 to $4.50 · the marginal cost of the third cup of coffee is the difference, $0.70 The marginal cost amount appears halfway between two rows because it represents the change in total cost as quantity of output changes from one level to the next. … The Greek letter delta Δ, is used to represent the “change” in a variable. Marginal Cost = Change in Total Cost / Change in quantity, or MC = ΔTC / ΔQ In Table 2, when moving from 3 to 4 cups of coffee produced .90 = ...