Law Of Diminishing College Essays Samples For Students

- Housing costs me nothing.
This statement is not correct from the microeconomic point of view. There is always an opportunity cost, which is always born by the person who asks the question. Sale of the house or rent of the flat while moving into a cheaper housing would provide quantification of such cost when compared to actual level of income. Also, there are maintenance costs and tax related costs.
- Boring lessons.
The financial cost of the lessons was already covered, from the microeconomic point of view, if the lessons are useless, participation will only increase ...

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Problem 1
Opportunity Cost
- Define the term “Opportunity Cost”
Opportunity cost is the value of the foregone mutually exclusive alternatives. When choice are to be made between several mutually exclusive alternatives in terms of decision making, opportunity cost is the value of alternative that is forgone due to selection of some other alternatives. Generally, opportunity cost is the value of next best alternative that can be achieved with same input. For example: George had $2 in his pocket which is enough to buy either a cup of tea or a cup of coffee. Among ...

The Corn Laws were laws passed by the British Parliament in 1815 to keep the prices of grain high so that British grain farmers would be favored in the market. England had different laws that affected the importation of grains dating back to the 12th century (The Editors of Encyclopædia Britannica), but it became a serious issue in the 1800s because of the costs of war; England had a rapidly expanding population and had a naval blockade imposed during the Napoleonic era that caused the price of grain to rise. The laws became a big issue between the ...

PART A- Questions related to ‘The Mystery of the Invisible Hand’

Jevons Marshall is a fictitious pen name used by the true author(s) of the book. Who really wrote the book? What makes ‘Jevons Marshall’ a clever choice for the pen name in this case?
Answer. The pseudonym Jevons Marshall is used by two renowned professors of economics who are William Breit and Kenneth G. Elzinga. The pen name is derived from the surnames of two famous economists named Alfred Marshall and William Jevons. The pen name made from the names of these two economists is deliberately used for writing mystery novels based on economics as where the former ( ...

Growth Rate of GDP

The growth rate of GDP is measured in terms of the original level of the GDP. Let us calculate the GDP for the following figures:

GDP in 2013: $13.1 trillion

GDP in 2014: $13.3 trillion
Growth in GDP: $0.2trillion
Growth rate of GDP =( 0.2/13.1)*100 =1.53%
If the growth rate remains the same, let us calculate the number of years that will be required for the GDP to double itself.
13.3(1+ 1.53/100)^t = 2*13.3
Or, (1+1.53/100)^t = 2
Or, (1.0153)^t = 2

Taking log of both sides:

tlog1.0153 = log2
Or, t= log2/log1.0153
Or, t =45.6
Thus it will take almost 46 years to double the GDP ...

The Law of Supply

The law of supply states that with an increase in the price of goods, the quantity supplied will increase and as the prices reduce, the quantity supplied will reduce, ceteris paribus. The implication here is that the price of a commodity, and the quantity that is supplied are directly related. Here, the quantity of goods that is supplied refer to some units that the buyers are willing and able to buy. This law rests on the assumption that all the other factors, save for the price of the commodity, which affect the supply of the goods remain the same. The ...

Diminishing Marginal Utility is whereby the marginal utility that a person derives from a product declines steadily as he increases consumption level by consuming additional unit of the same product, while keeping consumption of other related products constant. For instance, when one takes that first bite of a cake, it seems like he just cannot get enough of the same. However, as he takes his second piece as well as his third piece, he may begin to realize that he has had enough the cake. Applying the same concept, for each additional piece of cake he consumes, the additional satisfaction he receives ...