ECON 2400 Study Guide - Final Guide: Farad, Natural Disaster, Budget Constraint
Document Summary
Income and expenditure accounts: explain why the unemployment rate might not be an accurate measure of labour market tightness, consider an economy, which consists of two rms, corn inc. and syrup inc. , and consumers. 2012, corn inc. produces corn worth , 000, out of which , 000 it sells directly to consumers, , 500 it sells to the corn syrup factory and it keeps in storage for next year. Syrup inc. produces corn syrup worth , 500, out of which it sells , 000 to consumers and keeps , 500 in storage for next year. Explain. (you do not have to redo the calculations): consider an economy that consists of consumers, rms, and a government. The rep- resentative consumer has preferences over bundles of consumption goods c, and leisure (cid:96), satisfying the standard properties: more is preferred to less; preference for diversity; normality.
