Summary
EKN120 Summary of whole semester
- Course
- Institution
- Book
This document contains a summary of Chapter 12 to 26 from the textbook: Economics by J van Rensburg
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
EKN 110 interactive summaries based of learning outcomes
-
Summary Economics, ISBN: 9780077169671 EKN110 (EKN110)
-
EKN120 - Chapter 19-26
1 review
By: laraleighjonsie10 • 10 months ago
Seller
Follow
tanyah1
Reviews received
Content preview
EKN 120Economics
Contents
1. Facts about income inequality .............................................................................. 4
2. Causes of income inequality .................................................................................. 6
3. Equality vs efficiency ............................................................................................... 7
4. The economics of poverty ...................................................................................... 9
5. What is the government doing to change all of this? .......................................... 9
Chapter 13: South African in Brief: Private and Public Sectors .................................. 11
1. Private sector ......................................................................................................... 11
2. The public sector ................................................................................................... 14
3. Government’s role: a qualification ...................................................................... 16
4. Government finance ............................................................................................. 17
Chapter 14: Measuring domestic output and national income ............................... 18
1. Assessing the economy’s performance............................................................... 18
2. Gross domestic product vs gross national income ............................................. 18
3. Three ways of looking at GDP............................................................................... 19
4. The expenditure approach................................................................................... 20
5. The income approach .......................................................................................... 21
6. The production approach .................................................................................... 22
7. Other national accounts....................................................................................... 23
8. Nominal GDP vs real GDP ..................................................................................... 24
9. Shortcomings of GDP ............................................................................................ 25
Chapter 15: Basic macroeconomic relationships ...................................................... 26
1. The income-consumption and income-saving relationships ............................. 26
2. The interest-rate-investment relationship ............................................................. 29
3. The multiplier effect ............................................................................................... 30
Chapter 16: The aggregate expenditure model ....................................................... 32
1. introduction ............................................................................................................ 32
2. Consumption/ investment schedules .................................................................. 32
3. Other features of equilibrium GDP ....................................................................... 34
4. Changes in equilibrium GDP and the multiplier .................................................. 34
5. Adding the public sector ...................................................................................... 35
6. Adding international trade ................................................................................... 39
7. Equilibrium vs. full-employment GDP.................................................................... 39
1
, 8. Limitations of the model ........................................................................................ 40
Chapter 17: Aggregate demand and aggregate supply ........................................ 42
1. Aggregate demand.............................................................................................. 42
2. Changes in aggregate demand ......................................................................... 43
3. Aggregate supply.................................................................................................. 44
4. Changes in aggregate supply ............................................................................. 46
5. Equilibrium and changes in equilibrium ............................................................... 47
Chapter 18: Introduction to economic growth, Unemployment and Inflation ....... 49
1. Economic growth .................................................................................................. 49
2. The business cycle ................................................................................................. 50
3. Unemployment ...................................................................................................... 51
4. Inflation ................................................................................................................... 53
5. Does inflation affect output? ................................................................................ 55
Chapter 19: Government and market failure............................................................. 57
1. Public goods .......................................................................................................... 57
2. Externalities ............................................................................................................. 59
3. Information failures ................................................................................................ 63
Chapter 20: Fiscal policy, deficits and debt ............................................................... 66
1. Fiscal policy and the AD-AS model ...................................................................... 66
2. Built-in stability ........................................................................................................ 68
3. Problems, criticisms and complications ............................................................... 68
4. The public debt...................................................................................................... 69
5. False concerns ....................................................................................................... 69
6. Substantive issues ................................................................................................... 70
Chapter 21: Public choice theory and economics of taxation ................................ 72
1. Revealing preferences through majority voting ................................................. 72
2. Government failure ............................................................................................... 73
3. Apportioning tax burden ...................................................................................... 74
4. Tax incidence and efficiency loss ........................................................................ 75
5. The SA tax structure ............................................................................................... 77
Chapter 22: Disputes over macro theory and policy................................................. 78
1. Classical economics and Keynes ......................................................................... 78
2. What causes macro instability .............................................................................. 79
3. Does the economy self-correct?.......................................................................... 81
4. Rules or discretion? ................................................................................................ 82
5. Summary of alternative views ............................................................................... 83
2
,Chapter 23: International Trade................................................................................... 85
1. Economic basis for trade ...................................................................................... 85
2. Comparative advantage: Graphical Analysis .................................................... 85
3. Trade Barriers .......................................................................................................... 88
4. The case for peotection: Acritical review............................................................ 90
5. Offshoring ............................................................................................................... 91
Chapter 24: Exchange rates, balance of payments and trade deficits .................. 93
1. Financing of international trade ........................................................................... 93
2. The Balance of payments ..................................................................................... 93
3. Flexible exchange rates ........................................................................................ 95
4. Fixed exchange rates ............................................................................................ 98
5. Implications of SA trade deficits ........................................................................... 99
Chapter 25: South Africa in Global economy .......................................................... 101
1. International links ................................................................................................. 101
2. South Africa and world trade ............................................................................. 101
3. Government and trade ...................................................................................... 102
4. South African Trade relations .............................................................................. 102
5. The European union ............................................................................................ 103
6. Global competition ............................................................................................. 103
Chapter 26: The Economics of developing countries .............................................. 105
1. Classifications ....................................................................................................... 105
2. Obstacles to economic development .............................................................. 105
3. The vicious circle .................................................................................................. 107
4. The role of government ....................................................................................... 107
5. The role of advanced Nations ............................................................................ 108
6. Where from here? ................................................................................................ 109
3
, Chapter 12: Income Inequality and poverty
1. FACTS ABOUT INCOME INEQUALITY
Distribution
by income
category
Each decile represents 10% of the population
The total reflects the average of the columns
The Lorenz The cumulative percentage of households is measured along
curve the horizontal axis.
The accumulated percentage of their income is measured
along the vertical axis
Graph
Interpretation
Diagonal curve:
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tanyah1. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.02. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76669 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now