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Assume a seller would be willing to accept a price as low as $100 each for 5 machines, but the buyer offers a price of $150 each, which the seller accepts. Calculate total producer surplus in this example:
Why do some economists believe the Fed needs to unwind monetary policies instituted during the recession? What is the risk in doing so?
The cost of the groceries sold averages 70% of sales. The incremental cost to keep the store open, including the clerk's wage and other incremental operating co
Suppose that one day the personal printer is introduced into S land from another city and made readily available for purchase by households. Explain the effects of the personal printer on (a) the market area of Winkos and (b) the population of the..
How can two countries both be better off as a result of trade? How can tariffs protect U.S. jobs? Do tariffs lead to a net increase in jobs?
One firm has been contracted by a government agency to provide job training services to low income individuals. The marginal cost curve of the firm is MC=5+0.5Q There are no fixed costs. Firm 1 provides 120 hours of training services each week. What ..
A comparison of two computer manufacturers found that by implementing improvements in its supply chain, one company was able to reduce its average supply of key components to only 3-6 days’ supply of inventory, as compared with their competitor, whic..
How is money created? How does fractional-reserve banking work? What is the monetary base? What is the currency ratio. Understand Friedman’s equation for explaining changes in the money supply. What is the currency ratio and how does it effect the mo..
What are the limits to long-term u.s. economic growth? What can the government do to solve it?
The principle of utility involves maximizing happiness as a desirable outcome of decisions. Although it does not get directly said, there is an inverse intention to minimize the undesirable outcome of disaster. Utilitarian decisions are directed towa..
In an article titled, Gas prices dropping after last week's spike, that was published in The Atlanta Journal-Constitution newspaper on August 29, 2011, Mike Morris wrote: "After a spike last week as Hurricane Irene threatened East Coast oil refinerie..
By how much will aggregate demand at current prices shift initially (before multiplier effects) with
Which of the following is an ultimate objective of the Federal Reserve?
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