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Write your responses in complete sentences. Your answers to each question should include 2-3 paragraphs (125-250 words).
1. Why is a point below the production possibilities curve less efficient than a point on that curve?
2. Distinguish a change in demand and a change in quantity demanded. What are the causes of change in demand and quantity demand
3. Describe the market process that should occur if the price of a product is below its equilibrium price, and then describe what would occur if the price is above its equilibrium price, assuming that there is no market interference.
4. Identify who is and is not included in the labor force, explain how the unemployment rate is calculated, and list and explain the major types or categories of unemployment.
5. What is GDP? Explain the two main methods used to measure GDP. Why is GDP important?
What does a contractionary gap imply about the actual rate of unemployment relative to the natural rate. What must happen to real and nominal wages in order to close a contractionary gap.
a current account deficit is a very healthy thing. if we can get foreigners to give us real goods and services and talk
Explain how much should Jet Blue charge for a Business Class ticket.
In 250 words answer this question. What are the limits to the U.S. long-term economic growth? Is there anything that our government can do to address these limits, or would it be a bad idea to try?
As an international economist you have been tasked to make a short speech which answers the given questions:
Do you think it is correct for the European Commission to restrict mergers between American companies that do business in Europe? (For example, the European Commission vetoed the proposed merger between WorldCom and Sprint, both U.S. companies
Marketing refers to the four P's in duscussing firm strategties. Why do you think price is the most powerful and important P that the firm has at its disposal What makes it so much nore attractive as a tool as compared to the other Ps
Explain the basic logic behind the multiplier in words. Why does it require b, the marginal propensity to consume, to be between 0 and 1?
the production possibility frontier model showed the tradeoff between current consumption and capital goods. Explain the role of saving in this model and how increased saving will lead to greater economic growth in the future.
Mastercard had a series of cute commercials that list a series of accounting items and costs leading to a priceless product. Cell phones are often advertised as being free. In economics, it is said that nothing of value is either free or priceless
The budget deficit projections in this chapter include net interest on the debt, which depends on interest rates. Use the loanable funds model to explain what is likely to happen to interest rates and interest payments if the size of the deficit cont..
What is the value of the average propensity to consume at $200 real GDP What is the value of the average propensity to consume at $400 real GDP What is the value of the average propensity to save at $200 real GDP What is the value of the average prop..
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