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Explain how you imagine the invention of cheap electric cars would affect the demand for gasoline? Why? Which determinant of demand or supply would be affected?
Adding a variable input (labor) to a fixed input (capital) will result in an increase in output: As a firm adds labor beyond the point of diminishing returns: ATC and AVC get closer together as quantity produced increases because:
Explain how the circular flow diagram relates to the current economic situation. Using the circular flow diagram, explain a way that your family interacts in the factor market and a way that it interacts in the products market.
A storm destroys half the fava bean crop. Is this event more likely to hurt fava bean farmers if the demand for fava beans is very elastic or very inelastic?
Measuring GDP The following table shows data on consumption, investment, exports, imports, and government expenditures for the United States in 2009, as published by the Bureau of Economic Analysis. All figures are in billions of dollars. Fill in the..
Assume consumer tastes shift toward the consumption of apples. Which of the following statements is an accurate description of the impact of this event on the market for apples.
Government increases taxes by 50 billion and increase transfer payments by 50 billion illustrate what would happen to aggregate demand.
Some central bankers have looked at asset prices, such as prices of stocks, to guide monetary policy. The idea is that if stock prices begin to rise, it might signal future inflation or an overheated economy. Are there any dangers to using the stock ..
Which of the following factors did NOT lead to the development of the Feudalist society?
Find the monopolist's profit-maximizing output and price - calculate the monopolist's profit and what is the Lerner Index for this industry?
Financial Managers, Inc., buys and sells a large number of stocks routinely for the various accounts that it manages. Portfolio manager Andrea Colson has asked for your assistance in the analysis of the Johnson Fund. What are the mean and variance of..
GoodBite is interested in selling a new form of teeth whitening strips. They dissolve in your mouth and leave less of a gunky residue feeling than current competitors’ products do. White strips seem to appeal to people 20–29 years old. Should they l..
Assume that foreign inflation is 3 percent and domestic is 2 percent. How much higher/lower than the surrounding world’s nominal rate must the central bank mark their domestic nominal interest rate so that the real exchange rate will be unaffected?
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