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1. Adam Smith favors a policy of laissez faire in managing economic activities. Why?
2. Economics deals with the efficient use of resources? Why?
3. Marginal analysis tends to produce more optimal outcomes when working with scarce resources. How?
4. It is possible for everyone to enjoy comparative advantage in a task of their choosing. Why?
5. Prices and wages help coordinate economic activities. How?
6. Friedrich Hayek wrote, to assume all the knowledge to be given to a single mind is the same manner in we assume it to be given to us as the explaining economists is to assume the problem away and to disregard everything that is important and significant in the real world.
Explain why central planning eventually leads to misallocation of resources and corruption.
Explain what determines the level of income, employment, output and prices in our economy. Do you think current monetary and fiscal policy is working to help the U.S. economy achieve the three economic goals of full employment, economic growth, and s..
Describe how the activities influenced your awareness and understanding of the interrelationship between business and society and describe how the readings and journalling activities influenced your views on workplace ethics and corporate social re..
The firm has access to a perfect credit market with interest rate r. What is the maximum price the firm is willing to pay for a fork lift?
Keeping all elsr constant their answer would likely differ. How do you guess the interviewed will answer? Does the diference in response matter?
q.simple inc. has one real asset valued at 300 million and one outstanding bond issue having a total face value of 100
there was a month in which employment and the unemployment rate both rose. Assuming the computations were correct, how is it possible for both to have increased.
Suppose the demand for eggs is: Q=9,000-3,000P and the supply of eggs is: Q=-500+2,000P, where quantity is measured in millions (of eggs). Find the market-clearing price and quantity for eggs. Now suppose the cost of producing eggs increases such tha..
Suppose the spot price of the euro is currently $1.47 and the 1-year forward price is $1.56. Is the 1-year interest rate higher in the U.S. or in the euro zone? (HINT: remember that Sf/d = 1/Sd/f and Ff/d = 1/Fd/f )
how do public goods and private goods compare? open a supply and demand curve. in whcih direction do the shift if they both decease?
What is their goal, and illustrate what decision criteria do they use in trying to reach that goal.
Use axiom of transitivity to prove that indifference curves cannot touch each other. Use axiom of non-satiation to prove that indifference curves will always be downward sloping and utility functions will always be upward sloping. Use the axiom of di..
The 1st way is simply to utilize the price of the product in the exporter's home marketplace as the fair marketplace value.
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