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FUNDAMENTAL QUESTIONS
1. In a market system, who decides what goods and services are produced and how they are
produced, and who obtains the goods and services that are produced?
2. What is a household, and what is household income and spending?
3. What is a business and what is business spending?
4. How does the international sector affect the economy?
5. What is the public sector? What is public sector spending?
6. How do the private and public sectors interact?
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in part.
20 Chapter 4: The Market System and the Private Sectors
Copyright ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
in whole or in part.
Chapter 4: The Market System and the Private Sectors 21
financial intermediaries
circular flow diagram
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in part.
.
22 Chapter 4: The Market System and the Private Sectors
drop and turning to surplus by 1998. After four years of surpluses, a deficit was again
realized in 2002 and has grown since then. It exploded in 2008-2011, leading to record
levels of debt.
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in whole or in part.
Chapter 4: The Market System and the Private Sectors 23
6. Because the quota limits imports, net exports are higher than they would have been without the
quota. The increase in net exports means that spending on domestically produced goods and
services is now higher, which leads to the production of additional output. Domestic producers of
goods that compete with those goods on which the quota is imposed will benefit by receiving
higher prices for their goods than they would have without the quota. Consumers are hurt by the
quota because they cannot obtain all of the foreign goods they desire and because they must pay
artificially high prices. Foreign producers are also hurt because they cannot sell all of the products
that they could have if no quota had been imposed.
7. If households increase saving, then payments for goods and services go down by the amount that
saving goes up. The value of national output and income will drop unless investment and
government spending rises by the amount that saving rises and household spending falls.
8.
a. A = $9 million; B = − $3 million; C = − $6 million.
b. A has a trade surplus; B and C have trade deficits.
9. As tastes change, the demand for drive-in movies declines and causes both the equilibrium price
and quantity to fall; while the demand for indoor movies rises and causes both the equilibrium
price and quantity to rise.
Copyright © 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or
in part.
.
24 Chapter 4: The Market System and the Private Sectors
4. Budget approximately balanced in 1960s, budget deficit grew during 1970s, 1980s, and early
1990s. Deficit started shrinking in 1993, became a surplus from 1998 to 2001, then deficit started
growing rapidly.
5. Compared to partnerships, the limited liability aspect of corporations makes attracting investors
much easier. Investors risk only the amount of their investment in a corporation; in a partnership,
a wealthy investor may end up liable for all the debts of the partnership.
Historical note: The corporate form of business was developed initially to make possible trading
companies like the British East India Company.
Copyright ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website,
in whole or in part.
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faits prisonniers et jetés en prison, tandis que les simples partisans
furent livrés à des cours martiales, qui employèrent sans pitié les
tortures et la mort, pour enlever à la population l’envie de
recommencer. Cependant ce ne fut pas la terreur, mais
l’anéantissement, quelques années après, de la Sitche zaporogue
qui mit fin à ces insurrections en masse.
Nous ne devons pas manquer de remarquer que le trait saillant
de ces soulèvements fut qu’ils eurent, entre autres caractères, celui
de luttes religieuses, pour la défense du rite orthodoxe contre
l’introduction forcée de l’union, que les seigneurs et les autorités
polonaises s’efforçaient de faire passer dans la pratique sur la rive
droite du Dniéper. C’est pourquoi les moines des monastères
orthodoxes peuvent être regardés en partie comme les instigateurs
et parfois les organisateurs des haïdamaks, qui, quelques autres
motifs qu’ils pussent avoir, contribuaient surtout à augmenter la force
de résistance des populations ukrainiennes contre l’oppression et les
violences des catholiques. Melchisédech Znatchko-Iavorsky,
supérieur du monastère de Sainte Matrone, est considéré comme le
principal instigateur de l’insurrection de 1768. Le grand poète
ukrainien, Chevtchenko, né lui-même dans le pays où s’étaient
passés ces évènements, nous l’a dépeint dans ce rôle, en se
servant de la tradition orale populaire, recueillie sur place, dans son
poème célèbre « Haïdamaky » (1841). Un des principaux épisodes
relate la mort d’un marguillier de Mliev : il fut brûlé vif par les
Polonais, pour avoir exécuté l’arrêt de la commune, qui se refusait
d’accepter pour pasteur un prêtre uniate (1766). Les orthodoxes de
son temps lui décernèrent la gloire et la couronne du martyre.
XXXI.
Dépérissement de la vie nationale
dans la seconde moitié du XVIIIe siècle.