Economics A-Z terms beginning with A. Production–possibility frontier. Indicators Efficiency An example PPF with illustrative points marked The PPC shows left to right downward position.
A PPF(production possibility frontier) or PPC typically takes the form of the curve on the right. An economy that is operating on the PPF is said to be efficient, meaning that it would be impossible to produce more of one good without decreasing production of the other good. For example, assuming that the economy's available quantity of factors of production does not change over time and that technological progress does not occur, then if the economy is operating on the PPF production of guns would need to be sacrificed in order to produce more butter. If production is efficient, the economy can choose between combinations (i.e., points) on the PPF: B if guns are of interest, C if more butter is needed, D if an equal mix of butter and guns is required. Opportunity cost Marginal rate of transformation Shape Position Notes Supply and Demand.
The price P of a product is determined by a balance between production at each price (supply S) and the desires of those with purchasing power at each price (demand D).
The diagram shows a positive shift in demand from D1 to D2, resulting in an increase in price (P) and quantity sold (Q) of the product. If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price.If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price.If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price.If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.
Graphical representation of supply and demand Price elasticity of demand. Author: Geoff Riley Last updated: Sunday 23 September, 2012 Price elasticity of demand measures the responsiveness of demand after a change in price.
Explicit cookie consent. EARLIER this year it all looked so rosy.
In April, just two years after Greece imposed the biggest sovereign-debt restructuring in history on its private creditors, it raised €3 billion ($4.2 billion at the time) in five-year bonds at a yield of less than 5%. In July its ten-year bonds were yielding less than 6% and their Spanish and Italian equivalents less than 3%, not far off Germany’s. The troubled economies of Europe’s “periphery” were beginning to turn around, it seemed, and the European Central Bank (ECB) would do whatever it took to keep the euro zone together. That all went out the window in the global market sell-off of October 15th-16th. Yields on Greek government debt briefly exceeded 9%; the spread between yields on German government bonds and those of debt-addled euro-zone countries widened and lower-rated corporate-bond yields rose sharply too. Economics Online provides analysis, comment, and data on economics, economic theories and issues.
Move over America: China overtakes US as world's biggest economy (kind of) - Business News - Business - The Independent. According to the International Monetary Fund the combined purchasing power of China's citizens now outstrips that of America's.
And by the end of the year will China should make up 16.48 per cent of the world's purchasing-power adjusted GDP for a total of $17.632 trillion (£11 trillion). The US, by contrast, will make up 16.28 per cent, or $17.416 trillion. Purchasing power parity seeks to address the fact that while wages tend to be lower in “developing” countries than in mature economies like the US, the price of goods and servicing is also typically much lower. The Economist's Big Mac Index, for example, quotes the price of the McDonalds staple in July at $4.80 in the US, but just $2.73 in China. PPP, therefore, bases economic output on what a country's citizens can purchase, as opposed to an unadjusted GDP figure using market exchange rate, which is more often quoted.
Loading gallery Business news in pictures. CBI warns export demand is slowing in latest sign of faltering UK recovery. Falling demand for British goods abroad weighed on manufacturers in October, in the latest sign that the UK recovery is losing steam.
A sluggish eurozone economy and a stronger pound pulled exports lower for the first time in 18 months, according to the CBI, frustrating government ambitions for a big push in UK exports. Ebola crisis: The economic impact. 20 August 2014Last updated at 19:03 ET By Richard Hamilton BBC News Military road blocks are preventing the movement of goods and workers With more than 1,300 reported deaths from Ebola in West Africa, the virus continues to be an urgent health crisis, but it is also having a devastating impact on the economies of Guinea, Liberia and Sierra Leone.
"The economy has been deflated by 30% because of Ebola," Sierra Leone's Agriculture Minister Joseph Sam Sesay told the BBC. He said President Ernest Bai Koroma revealed this staggering and depressing news to ministers at a special cabinet meeting. BP and GDF Suez discover new North Sea oil field. 23 October 2014Last updated at 05:47 ET.
UK housing market is cooling, says BBA. 23 October 2014Last updated at 07:04 ET The mortgage market has slowed since the summer, banks say.
UK retail sales fall in September on weak clothes demand. 23 October 2014Last updated at 05:58 ET UK retail sales fell in September, adding to signs that the economic recovery may be losing steam.
The Office for National Statistics said sales volumes fell 0.3% on the month, more than expected and the weakest figure since January. Mild weather in September put shoppers off buying winter clothes, but sales were weaker in other sectors too. Slow wage growth, falling house prices, and global economic worries have raised concerns about the UK recovery. NHS needs extra cash and overhaul, say health bosses. Definition of Fiscal Policy. Tesco shares rally on upgrade from leading City analyst. However, thanks to the cautiously upbeat assessment issued by Mr McCarthy on Wednesday, the stock rose for a third straight trading session, the first time the troubled supermarket group has managed such a run since mid-August.
Oh boy! There was nothing wrong with fiscal policy under Labour, says top economics prof. Simon Wren-Lewis, professor of economics at Merton College, Oxford, blogs to the effect that there was no real problem of overspending under the last government; the idea that there was is largely a media lie propagated by people such as yours truly, he suggests, though obviously he doesn't get down, dirty and quite as directly personal as that. There's quite a bit of this sort of revisionism around at the moment – which is odd, given that the Labour leadership has just gone the other way and come over all fiscally responsible. Normally I wouldn't bother with it; this is now basically just one for the history books. Yet if misguided analysis such as this gains traction, failure to control the public finances will happen again, and Britain will for ever be stuck on a treadmill of repeated fiscal crisis.
Carl Icahn: Apple's share price is half what it should be. In April, Apple said it would return $130bn of cash to shareholders, marking one of the biggest shareholder windfalls in history. It did not credit Mr Icahn directly, but the billionaire investor was quick to claim the victory. Taking account for a share split, Apple’s share price has risen more than 50pc since he started his campaign, making the April share repurchase look like a bargain. Apple shares were up 1pc at $101.78 in premarket trading on Thursday. In Thursday’s letter, entitled 'Sale: Apple shares at half the price', Mr Icahn said that Apple was at another “watershed” moment, and that he believed it was poised to take market share from Google, its “only real competitor”. Has the London house price bubble burst? “A growing sense of caution seems to have taken a particular toll on the London market where buyer demand contracted more significantly than elsewhere in September, falling for the fifth consecutive month,” the report read.
For the rest of the UK, the price balance fell from 39 to 30 on the sentiment index this month - the lowest reading since June 2013 as the combination of strict new mortgage rules, nervousness ahead of rising interest rates forecast for the spring, and high prices have dampened demand. Number of UK High Street shops falls sharply. 8 October 2014Last updated at 19:39 ET. Shoppers lose appetite for big supermarkets. Ebola outbreak: Britain sending 750 soldiers and medics to Western Africa - Health News - Health & Families - The Independent.
Economy tracker: Unemployment. 19 March 2014Last updated at 06:42 ET Continue reading the main story Latest news: Momentum slows in housing market, says Rics. 8 October 2014Last updated at 19:45 ET. IMF warns of low interest rates 'risk' to economy. 8 October 2014Last updated at 11:30 ET By Andrew Walker BBC World Service Economics correspondent Investors could chase riskier assets if interest rates stay low, the IMF says The International Monetary Fund has warned of new risks to global financial stability. Low interest rates could lead investors to buy riskier assets as they seek better returns, the IMF says. General Economics.