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Explain how an action taken by a government to keep the prices charged for child care artificially low might have the opposite effect in some cases and create a black market with very high prices. How high could black market prices for child care potentially go? Provide one or more diagrams to illustrate your answer.
Assume that the demand for welding services is QD = a - bP where a > 0 and b > are exogenous parameters. The baseline case is b = 0.5 and a = 34.
Discuss one recent price change that you have noticed while visiting your local supermarket. Speculate on whether or not the price change that you identified.
Whats the study of all country's overall economic issues, such as the employment rate, the gross domestic product, and taxation policies?
Assume the station plans to give away the videos. How many dvds should it order. From which supplier.
Describe the sequence of events that real business cycle theorists would use to explain how an adverse supply shock would impact the economy
Assume the market for computer chips is dominated by two firms: Intel and AMD. Intel has discovered how to make superior chips and is considering whether or not to adopt the new technology.
How would you expect a fall in a country's population to alter its aggregate money demand function? Would it matter if the fall in population were due to a fall in the number of households or to a fall in the size of the average household?
Why scarcity is the fundamental economic problem that all societies face? Then, explain what we study in microeconomics and macroeconomics.
Imagine that you are standing on the bank of a river and injured people start floating down the river towards you. There is no end to the floating people...they just keep coming and coming. You are alone and you do not have cell service to phone f..
Suppose GDP was constant over a period of years and yet living standards increased. Which of the following might not be a reason for this? a) There might be an increase in household production.
What challenges will the U.S. economy face given a higher debt limit for future economic growth?
IS-LM model, definitions, derivation and assumptions. Short run versus Long run, differences and how they affect the assumptions behind the IS-LM model.
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