Explain why prices are neutral

Assignment Help Microeconomics
Reference no: EM131489443

Question: 1. Describe four advantages of using price as an allocating mechanism.

2. Discuss why allocating resources without prices is difficult.

3. Explain why prices are neutral.

Reference no: EM131489443

Questions Cloud

Show that neither price maximizes joint profits : Show that neither price maximizes joint profits.
Create the clues for the crossword puzzle : Create the clues for the crossword puzzle below. Your clues should relate to the chapter content.
Write a paper on a nation-state of your choice : Write a 5-7 page double-spaced typed paper on a nation-state of your choice. The paper should cover the geography, history and current political climate.
Measurement of gross domestic product : Discuss economic theory related to the quote above. Be sure to include a definition of exports and the way in which exports.
Explain why prices are neutral : Describe four advantages of using price as an allocating mechanism.
Explain what is meant by the term market equilibrium : Describe the role of shortages and surpluses in competitive markets.
Measure of national income : In spite of the limitations (shortcomings), why is the GDP used as a measure of national income as well as a measure of national economic wellbeing?
Identify three causes of a price change in a market : Identify three causes of a price change in a market, using a graphic organizer like the one below. Add examples and identify the possible results for each.
Change in demand and a change in quantity demanded : What is the difference between a change in demand and a change in quantity demanded? Supply and quantity supplied?

Reviews

Write a Review

Microeconomics Questions & Answers

  What internal organizations should be represented

You have decided to begin by creating a self-directed DfE team. What internal organizations should be represented on your team, and why? What would be your first steps as a self-directed DFE team?

  Competitive firms demand for a factor of production

Consider a competitive firm's demand for a factor of production as a function of the factor price when prices of other factors are given. let us consider two case-The quantity of output is fixed, The price of the product is fixed. the elasticity of d..

  Price charged to local versus out of town visitors

Explain why the relationship between the prices charged to locals versus the prices charged to out of town visitors? Why does this happen?

  How long or short should a mission and vision statement be

What factors need to be considered to produce an appropriatemission statement and vision statement for the organization How long or short should a mission and vision statement be

  Determine the impact on the economy

Determine the impact on the economy if the central bank in the U.S. used inflation targeting. Explain your rationale.

  Describe gasoline as a commodity

Determine if the demand for the following products is price elastic or price inelastic, or explian how the necessity of a good and the availability of substitutes affect the price elasticity of demand.

  What was the new policy as evidenced by the fed funds rate

What was the new policy as evidenced by the Fed Funds Rate

  Which level indicates point of maximum economic efficiency

ECON 625- Which level indicates the point of maximum economic efficiency? Which of the following statements best represents a difference between short-run and long-run cost?

  Command economy and communism

What is the difference between command economy and communism?

  How do you think you will feel after the reactions

Is it a formal norm or an informal one? What reactions by others do you expect? If published, might these reactions affect your life chances? How do you think you will feel after the reactions?

  How many units of x will each person own after trade

How many units of X will each person own after trade? How much of the tax per unit was the seller able to pass on to the buyers? What would the market price have to be in order to get B to buy 2 units of X?

  Differences among spot transactions and forward transactions

Explain the differences among spot transactions, forward transactions, and futures contracts

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd