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Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services and the flow of dollars for each of the following activities.
1. Paul purchases a pair of shoes for $30.
2. Shannon receives a salary of $1,500 per week at the supermarket which she works.
3. Honda Limited receives $20,000 for the sale of a sports utility vehicle.
4. Mark earns $2,000 from his 15 percent ownership of Apple stock.
The demand and supply functions of two related goods are given by Qd1 = 30 - 8P1 + 4 P2 ,Qs1 = -60 + 6P1 ,Qd2 = 200 + 4 P1 - 4 P2, Qs2 = -40 + 6P2 - What is the relationship between good one and good two?
Assume this farmer pays each farm worker $800 over the growing season and spends $3,000 for seed and fertilizer. If the price of corn in the spot market is $4.20 a bushel, what is the farmer's profit (assume no fixed cost)?
Carl is deciding whether or not to make a farm. If he makes a farm, he will earn a $50,000 grant from the government. For every 100 head of cattle that he increase and sells.
Identify the fallacy in the following discussion: "The effect of an excise tax on a commodity might seem at 1st sight to increase the value that buyer pay.
"Program evaluation", as we know it, began in the late 1800s as a rough set of social science investigative techniques and measuring tools to study perceived.
If total factor productivity rises in the one-period model, explain what happens to the real wage in equilibrium, and why.
If the auto industry were to leave Canada, how seriously would the Canadian economy and society be hurt? Evaluate the impact of the globalization threat on the CAW's bargaining power.
Suppose that w = 4. How much would the monopolist be willing to pay to set r such that it monopolizes the market for the final good?
If the price elasticity of demand for used cars priced between $3,000 and $5,000 is 1.2 (using the mid-point method), what will be the percent change in quantity demanded when the price of a used car falls from $5,000 to $3,000?
What is the Phillips curve? What role does it play in the short-run model? Explain the role played by each term in the equation for the Phillips curve.
The natural rate of employment depends on the stock of capital, which in turn obviously depends on investment expenditure. The natural rate also depends on technical progress, which is also likely to depend on levels of investment and research and..
Why are future events so important to the issue of revenue and expense measurement?
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