The author discusses several issues that instructors of introductory macroeconomics courses should consider when introducing imports in the Keynesian expenditure model. The analysis suggests that the specification of the import function should partially, if not completely, be the result of a simple discussion about the spending and import…

The authors show how the transformation loci in the specific factors model (capital specificity) and the Heckscher-Ohlin-Samuelson model (capital mobility) can be rigorously derived and easily compared by using geometric techniques on the basis of Savosnick geometry. The approach shows directly that the transformation locus with capital…

For the open economy, the workhorse model in intermediate textbooks still is the Mundell-Fleming model, which basically extends the investment and savings, liquidity preference and money supply (IS-LM) model to open economy problems. The authors present a simple New Keynesian model of the open economy that introduces open economy considerations…

Models imports as a fixed proportion of spending rather than as a function of total or disposable income. Predicts the initial autonomous change in domestic spending by netting out spending shifts. Presents formulation which provides a clearer understanding of how leakages influence the multiplier process. (RLH)

Demonstrates that it is possible for economies of scale to induce a price-discriminating monopolist to sell in an unprofitable market where the average cost always exceeds the price. States that higher profits in the profitable market caused by economies of scale may exceed losses incurred in the unprofitable market. (CMK)

This document, which is intended for teachers of high school-level business education courses, contains both the academic standards for business education in Wisconsin secondary schools that were disseminated in 1998 and learning activities to enable students to meet the standards. The activities were developed for students completing grade 12 and…