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Find a news story from the last 12 months that you believe impacted Aggregate Demand or Aggregate Supply. Provide a brief summary of the story and then explain why it impact AD or AS. Was it positive or negative impact?
Federal vs State Government. Choose a side to argue from. What makes the other form of government weaker in solving problems and deliver services to citizens?
Suppose for a moment that someone with legislative power decides to abolish Fractional Reserve Banking and passes a law that forces banks to only lend the money they own, that is M0. What would be the economy-wise implications of such a change in the..
If a political candidate said that if she were elected to Congress, she would work toward cutting federal government spending by one-third over the next four years; would she stand much chance of fulfilling her promise? Why or why not? Discuss the pr..
Suppose that Bridget and Erin spend their incomes on two goods, food (F) and clothing (C). Bridget’s preferences are represented by the utility function U(F,C) = 10FC, while Erin’s preferences are represented by the utility function U(F,C) = 0.20F2C2..
What would be the value of consumer surplus if the market were perfectly competitive? What is the value of the deadweight loss when the market is a monopoly?
Domestic produces often base their claim for import protection on the fact that workers in country X are paid substandard t wages.
According to Malthus’s view, which of the following is a consequence of increased population? Which of the following happens when a person buys shares in a mutual fund? Which of the two bonds in each example would you expect to pay the higher interes..
A consumer has $600 to spend on goods X and Y. The market prices of these two goods are Px = $30 and Py = $10. What is the market rate of substitution between goods X and Y? Suppose that the consumer's income doubled. How does that alter the market r..
Illustrate what is an opportunity cost. Elucidate how does the idea relate to the definition of economics.
The consultants of Allcare Family Clinic (AFC) have determined that if the clinic hires two more practical nurses, without any other changes in its operation, it can increase the number of patients it treats during a week from 200 to 220. The weekly ..
The spot price of oil is $110 per barrel and the cost of storing a barrel of oil for one year is $3.25, payable at the end of the year. The risk-free interest rate is 6% per annum, continuously compounded. What is an upper bound for the one-year futu..
Take a sample of thirty households from two counties A and B and collect data on their incomes for the past month. The information obtained (in thousands of dollars) and their corresponding frequencies is given below:
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