The Economy 1.0 errata

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4	The Economy 1.0 errata
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6	Below is the list of errata with implementation date.
7	If you notice any additional errors please let us know by emailing us at: contact@core-econ.org
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9	Unit	Section	Original text	Corrected text

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11	Errata #1 - 15 December 2017
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13	Preface		Under the subheading "A global commitment", the second sentence reads: "It’s development spans the world…".	Under the subheading "A global commitment", the second sentence should read as: "Its development spans the world…".
14	1	1	Spelling of: Ib'n Battuta	Spelling should be: Ibn Battuta
15	1	2	In Question 1.1, the explanation for option (3) states: "The GNP is calculated by adding to the GDP the output of the UK nationals abroad and subtracting from it the output of the foreign nationals who reside in the UK."	In Question 1.1, the explanation for option (3) should state: "GNP adds the output produced abroad attributable to UK residents, and subtracts UK output attributable to residents abroad."
16	1	2	In Question 1.1, a word 'national' is used.	In Question 1.1., the word 'national' should be replaced by 'resident'.
17	1	10	Question 1.8 begins with the sentence: "Look again at Figure 1.10…".	Question 1.8 should begin with the sentence: "Look again at Figure 1.11…".
18	3	1	In Figure 3.5, the vertical axis is labelled as: "Final exam mark".	In Figure 3.5, the vertical axis should be labelled as: "Final grade".
19	3	2	In the table below Figure 3.7 the MRS between points D and H is given as 5.	In Figure 3.7, the MRS between points D and H should be 4 (the table is available in the print version only and does not appear in the e-book version).
20	4	13	Just above Exercise 4.12, the last sentence reads: ”Exercise 4.9 gives some examples...”.	Just above Exercise 4.12, the last sentence should read as: "Exercise 4.12 gives some examples…”.
21	5	6	In Figure 5.5, there is no hump-shaped line connecting all the corresponding points from the second graph onwards.	In Figure 5.5, there should be a hump-shaped line connecting all points from the second graph onwards.
22	5	12	In Exercise 5.9, Case I, the second column states: "20 people own 1 hectare each".	In Exercise 5.9, Case I, the second column should state: "20 people own 5 hectares each".
23	7	2	In Question 7.4, the correct answers are given as (1) and (3).	In Question 7.4, the correct answers should be (1), (3) and (4).
24	7	4	In Question 7.8, the horizontal axis shows quantities of 20 and 40.	In Question 7.8, the horizontal axis should show quantities of 10 and 20.
25	7	4	In Question 7.8, the correct answer is given as (4).	In Question 7.4, the correct answer should be (3).
26	7	6	In Figure 7.12b, in the second graph, the marginal revenue at A was given as $6,480.	In Figure 7.12b, in the second graph, the marginal revenue at A should be $6,320.
27	7	9	In Figure 7.19, the price elasticity for Category 30 is given as 0.1793.	In Figure 7.19, the price elasticity for Category 30 should be 1.1793.
28	8	4	In Figure 8.7, the explanation in the second graph reads: "When P = €2.35, each bakery supplies 50 loaves, and the market supply is 50 × 120 = 6,000 loaves."	In Figure 8.7, the explanation in the second graph should read: "When P = €2.35, each of the 50 bakeries supplies 120 loaves and the market supply is 50 × 120 = 6,000 loaves."
29	9	7	Two paragraphs before Figure 9.13, the sentence reads: "...at point B (q, p) the slope of the isoprofit curve with the higher wage is steeper."	Two paragraphs before Figure 9.13, the sentence should read: "...at point B (q, p) the slope of the isoprofit curve with the lower wage is steeper."
30	10	6	In Figure 10.10, the middle and bottom red lines meet the vertical axis above 110 and 80 respectively.	In Figure 10.10, the middle and bottom red lines should meet the vertical axis at 110 and 80 respectively.
31	10	8	In Figure 10.13b, under Bonus Bank's liability, it is stated that $20 is "Payable on demand to Marco."	In Figure 10.13b, under Bonus Bank's liability, it should state that $20 is "Payable on demand to Gino".
32	10	8	In Figure 10.13e, the title of the first column is: "Bonus Banks's assets".	In Figure 10.13e, the title of the first column should be: "Abacus Bank and Bonus Bank's assets".
33	10	9	Just before Exercise 10.5, the first bullet point states: "How does the lending rate affect spending in the economy? We will answer this question in Section 10.10."	Just before Exercise 10.5, the first bullet point should state "How does the lending rate affect spending in the economy? We will answer this question in Section 10.11."
34	10	12	In the text below Figure 10.20, in the second bullet point a study that approximately two-thirds of US families may be credit-constrained or excluded is referenced to.	The link to the study has been added at the end of the sentence in the second bullet point.
35	10	12	In Figure 10.19, in the table, the label for the second row is: "Credit market (Unit 12)".	In Figure 10.19, in the table, the label for the second row should be: "Credit market (Unit 10 and 12)".
36	10	13	In Question 10.12, the example for option (3) states: "The Gini coefficient for Case B is 0.66."	In Question 10.12, the example for option (3) should state: "The Gini coefficient for Case B is 0.7."
37	10	13	In Question 10.12, option (4) states: "There is a 10% increase in the Gini coefficient in Case B compared to Case A." while the explanation for option (4) states: "0.66 is 10% higher than 0.6."	In Question 10.12, option (4) should state: "There is a 16.7% increase in the Gini coefficient in Case B compared to Case A." while the explanation for option (4) should state: "0.7 is 16.7% higher than 0.6".
38	11	Intro	In Figure 11.1, the horizontal axis label "Excess supply" is on the right, and the label "Excess demand" is on the left.	In Figure 11.1, the horizontal axis label "Excess supply" should be on the left, and the label "Excess demand" should be on the right.
39	12	1	In Question 12.1, the correct answers are given as (1), (2) and (4).	In Question 12.1, the correct answer should be (4).
40	12	6	In the box under the heading: "Hidden attributes and adverse selection" a word is misspelled as 'selcetion'.	In the box under the heading: "Hidden attributes and adverse selection" the word should be spelled as 'selection'.
41	13	7	The paragraph below Figure 13.14 reads: "As we saw in Unit 11... The chart shows in dotted orange the behaviour of the US stock market index on which hi-tech companies are listed."	The paragraph below Figure 13.14 should reads as: "As we saw in Unit 11... The chart shows in red the behaviour of the US stock market index on which hi-tech companies are listed."
42	14	9	In Figure 14.16, there is a repetition of the label "Growth rate of exports (relative to 1979) (%)" for all three periods.	In Figure 14.16, the second instance of the label "Growth rate of exports (relative to 1979) (%)" should be replaced in all three periods by the label "Growth rate of imports (relative to 1979) (%)".
43	17	1	In Figure 17.3, in the graph in the lower panel, the year 1939 is labelled as the "Start of WWI".	In Figure 17.3, in the graph in the lower panel, the year 1939 should be labelled as the "Start of WWII".
44	18	1	In Figure 18.2, the annotation for the year 1945 is given as: "End of WIWI".	In Figure 18.2, the annotation for the year 1945 should be: "End of WWII".
45	19	3	In Figure 19.13, the horizontal axis is labelled as: "Wealth owned by the indicated decile (%)".	In Figure 19.13, the horizontal axis should be labelled as: "Wealth owned by the indicated quintile (%)".
46	20	9	In Question 20.10, the correct answers are given as (2) and (4).	In Question 20.10, the correct answers should be (1) and (4).
47	22	7	In the margin for further reading on Albert Hirschman, the third bullet point states: '24 Updated March 2013'.	In the margin for further reading on Albert Hirschman, the third bullet point should state: 'Updated 24 March 2013'.
48	Leibniz	2.7.1	At the end of the section, the notation of the second derivative for the production function was: f"(x) > 0	At the end of the section, the notation of the second derivative for the production has been amended to: f"(x) < 0
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50	Errata #2 - 13 April 2018
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52	2	5	The second line of the equation under Fig 2.8 reads: "change in profit from switching to B = change in revenue - change in costs".	The second line should read: "change in profit from switching from B to A = ...".
53	3	1	In the table in Figure 3.5 the grade for 8 hours is shown as 73.	In the table in Figure 3.5 the grade for 8 hours should be 74.
54	4	2	In Question 4.2 the explanation to answer c is given as: "Anna would attain the highest happiness level if they could go to the cinema together. Similarly, Brian would be happiest if they both watched football."	In Question 4.2 the explanation to answer c should be: "Brian would attain the highest happiness level if they could go to the cinema together. Similarly, Anna would be happiest if they both watched football."
55	6	6	In the fourth paragraph spelling of: priciple	Spelling should be: principle
56	6	7	The paragraph above figure 6.5 begins with the sentence: "The upward-sloping straight line in Figure 6.5 joins together a set of points that have the same ratio of effort to wages, w/e."	The sentence should read: "The upward-sloping straight line in Figure 6.5 joins together a set of points that have the same ratio of effort to wages, e/w."
57	7	7	In Question 7.13 none of the answers are shown as correct.	In Question 7.13 answers A should be shown as correct.
58	8	1	In Question 8.1 a sentence reads: "After a survey, you estimate the demand and supply curves."	In Question 8.1. the sentence should read: "After a survey, you estimate the demand and supply curves to be the ones shown in Figures 8.1 and 8.2".
59	13	4	In Question 13.4 answer A reads: "A decline in imports, holding all other components of GDP constant."	In Question 13.4 answer A should read as: "Imports represent expenditure on foreign goods and services, so a decline in imports implies that a greater share of C, I, and G, which are assumed constant, is being spent on domestic production. Remember that GDP measures spending on domestic production."
60	13	4	In Question 13.4 when selecting answers A and D the last sentence reads: "This implies greater expenditure on domestic production."	In Question 13.4 when selecting answers A and D the last sentence should read as: "An increase in government spending implies greater expenditure on domestic production."
61	13	8	In Exercise 13.9 a sentence reads: "...takes place in 1974-1975 and 1979-2000."	In Exercise 13.9 the sentence should read as: "...takes place in 1974-1975 and 1979-1982."
62	14	2	In the Einstein section, the equation 2 reads: "If k is the multiplier, we have: k = 1.5(1+c_1 + c_1^2 + … + c_1^n"	In the Einstein section, the equation 2 should read as: "If k is the multiplier, we have: k = (1+c_1 + c_1^2 + … + c_1^n"
63	14	2	In the graph for Question 14.2, the vertical shift on the left side is labelled 1.5.	In the graph for Question 14.2, the vertical shift on the left side should be labelled 2.
64	14	5	In Question 14.6. the second line of the AD equation contains "I".	In Question 14.6. the second line of the AD equation should give "I" as a function of r, i.e. I(r)
65	15	Intro	Figure 15.1.	A note has been added below Figure 15.1: "In the chart, two years in which deflation occurred have been omitted. If people, as is plausible, dislike falling prices as well as rising prices, and we include the absolute value of inflation for those two years, the relationship is somewhat stronger."
66	16	1	In Question 16.2 option A reads: "The average product of capital at A is 20,000 / 15,000 = 1.33" while the explanation to this answer reads: "The average product of capital at A is 15,000/20,000 = 0.75."	In Question 16.2 option A "…at A" should be replaced by "…at B"
67	16	2	Figure 16.4.	The net employment bars in Figure 16.4 have been incorrectly plotted and a new Figure 16.4 has been included.
68	16	9	Figure 16.15	Figure 16.15 has been incorrectly plotted and a new Figure 16.15 has been included.
69	19	1	Under the heading 'Inequalities between and within nations' the third paragraph begins with: "The ‘great divergence’ in Unit 1 resulted because the kink in the hockey stick for per capita income came earlier for some countries (Britain, Italy, and Japan in Figure 1.1a), later for others (China and India), and is yet to occur for still others (Nigeria and Argentina) (see also Figure 1.11)."	Under the heading 'Inequalities between and within nations' the third paragraph should begin with: "The ‘great divergence’ in Unit 1 resulted because the kink in the hockey stick for per capita income came early for some countries (Britain, Italy, and Japan in Figure 1.1a), later for others (China and India), and has not yet occurred for others (Nigeria and Argentina) (see also Figure 1.11)."
70	20	3	Question 20.4 gives option D as correct.	Question 20.4 should give option B as correct.
71	20	5	Under the heading 'Cap and trade: Examples of emissions trading' the third paragraph contains a sentence that reads: "With demand exceeding supply, the price of permits fell dramatically, providing little incentive for firms to undertake abatement expenditures."	The sentence should read as: "With supply exceeding demand, the price of permits fell dramatically, providing little incentive for firms to undertake abatement expenditures."
72	21	6	Under the heading 'How intellectual property rights affect innovation' the fifth paragraph contains a sentence that reads: "Among these was Jonathan Hornblower’s rival invention, which was more efficient that the Watt design."	The sentence should read as: "Among these was Jonathan Hornblower’s rival invention, which was more efficient than the Watt design."
73	22	12	Figure 22.18b depicts the point N' twice.	Figure 22.18b should depict the points N' and N''.
74	Glossary	stock	The glossary definition of 'stock' contains the spelling: It's.	The spelling should be: Its.
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76	Errata #3 and #4 - 10 August 2018
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78	This errata lists errors and their corrections for The Economy 1.0 edition. The errors in this section have been corrected in the e-book version of The Economy on 10 August 2018 but might still appear in the print version of the book. If you notice any additional errors please let us know by emailing us at: contact@core-econ.org
79	Unit	Section	Original text	Corrected text
80	9	6	In the Einstein section, in the penultimate bullet point, a sentence reads: "...then the Gini coefficient declines to g = n – 1 and point Y moves…".	The sentence should read as: "...then the Gini coefficient declines to g = 2u + n – 1 and point Y moves…".
81	10	9	The sub-section titled "Bond prices and yields" was part of the text.	The sub-section titled "Bond prices and yields" was moved to the Einstein section.
82	11	Intro	The note below Figure 11.1 reads: "Two markets had the same outcome, with a price of Rs4 per kg."	The note below Figure 11.1 should read: "Two markets had the same outcome, with a price of Rs6.2 per kg."
83	12	2	Some sections of Question 12.2 contained the '£' sign.	All sections of Question 12.2 should contain only the '$' sign.
84	12	2	In Question 12.2 answer to option A read as: "...which is the yellow shaded area…"	In Question 12.2 answer to option A should read as: "...which is the green shaded area…"
85	12	3	Some sections of Question 12.4 contained the '£' sign.	All sections of Question 12.4 should contain only the '$' sign.
86	12	8	Exercise 12.9	Exercise 12.9 has been replaced with a new text.
87	13	4	In Question 13.4, when choosing options A and C, the last line of the explanation text reads as: "This implies greater expenditure on domestic production."	In Question 13.4, when choosing options A and C the last line of the explanation should read as: "An increase in government spending implies greater expenditure on domestic production."
88	13	6	Exercise 13.6	Exercise 13.6 has been replaced with a new text.
89	13	6	In Question 13.7 the answer to option A reads as: "A credit-constrained household will hope to consume the same level after t = 1. However when it receives the news about the fall in future income at t = 3, it will readjust its consumption to a lower level."	In Question 13.7 the answer to option A should read as: " If the household is not credit-constrained, then it can smooth consumption over the next three periods by borrowing at t=1, then repaying debt once income rises. Therefore it will not consume at the same level after t=1."
90	15	intro	There was some confusion regarding the exclusion of years 1928 and 1932 in Figure 15.1.	A side note was added to Figure 15.1 that reads: " If the two observations in which deflation (falling prices) occurred are included in the regression in absolute values - reflecting the fact that it is changes in prices that are unpopular - then the relationship shown in the figure is stronger. The R-squared is 0.42 compared to 0.36, and the coefficient on inflation is still negative and significant."
91	15	6	Figure 15.9	Slides 2 and 3 of Figure 15.9 have been amended.
92	16	1	In Question 16.2, option B referred to point 'A'.	In Question 16.2, option B should refer to point 'C'.
93	16	1	In Question 16.2, when choosing option B, the answer was given as: "The marginal product of capital at A is the slope of the production function at A."	In Question 16.2, when choosing option B, the answer should be given as: "The marginal product of capital at C is the slope of the production function at C."
94	17	8	In the first paragraph below Figure 17.20 the fourth sentence reads as: "In each case, the total of debt plus assets is made equal to 100%."	In the first paragraph below Figure 17.20 the fourth sentence should read as: "In each case, total assets, or equivalently, the total of debt plus net worth is made equal to 100%."
95	18	8	The caption under the video contained the term "economic historian".	The term should be changed to "economist".
96	19	2	In Question 19.4 the answer to option B contained a sentence that reads as: "The purple bar at the top-left of the figure (left panel) shows this information."	In Question 19.4 the answer to option B should contain a sentence that reads as: "The first purple bar in the left panel shows this information."
97	22	12	The section titled 'Unintended consequences' contains a word 'retaining'.	The word in the section titled 'Unintended consequences' should be changed to 'retraining'.
98	Glossary	principal-agent relationship	The original definition reads as: "This relationship exists when one party (the principal) would like another party (the agent) to act in some way, or have some attribute that is in the interest of the principal, and that cannot be enforced or guaranteed in a binding contract. See also: incomplete contract. Also known as: principal–agent problem."	The definition should be changed to read as: "This is an asymmetrical relationship in which one party (the principal) benefits from some action or attribute of the party (the agent) about which the principal's information is not sufficient to enforce in a complete contract. See also: incomplete contract. Also known as: principal-agent problem."
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100	Errata #5 - 30 November 2018