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Which of the following is an important advantage of discretionary policy? A. Influencing the political business cycle. B. Flexibility to deal with changing economic conditions C. Limiting the opportunities for abuse of power by policymakers. D. Avoiding the time inconsistency of policy problem
What do each of the following areas tell us about the recent health of the economy? Corporate profits, Labor force and the unemployment rate, and C. The consumer price index and its components
Assume the demand function for basketballs is given by QD = 150 −3P + 0.1I, where P = price of a basketball, and I = average income of consumers. Also, assume the supply of basketballs is given by QS = 2P. If the market for basketballs is perfectly c..
Economists use Gross Domestic Product (GDP) to measure the economic activity and the national income. What are the major components of the USA GDP? Explain the contribution of each component to the GDP with data. What is the difference between real G..
Consider the following goods and services. Which are the most likely to be produced in a perfectly competitive industry? Which are not? Explain why you made the choices you did, relating your answer to the assumptions of the model of perfect competit..
Based on absolute advantage and comparative advantage, explain the effect of global economic conditions on the choices available to that country. Include the current exchange rate of the country's monetary unit.
q.the below information about the market for chocolate bars are revealed by market research demand schedule qd 1600 -
The manager of an Electronic Corporation has estimated the total fixed and the total variable cost function for producing a particular type of camera to be: TVC = 60Q + 12Q2 TF = $1200 If the Corporation sells the cameras at a price of $60 each, how ..
Why do consumers want to save more in the weak economy? What influences our consumption? Should governments be made by law to balance their budgets, or should they be permitted to run deficits sometimes? Should you go into debt sometimes? Explain?
The banking system currently has $100 billion of reserves, none of which are excess. People hold only deposits and no currency, and the reserve requirement is 40%. If the Fed reduces the reserve requirement to 20% and at the same time sells $10 billi..
Suppose that a profit maximzing monopolist’s marginal costs increase at all output levels. What is likely to happen to the quantity the monopolist produces, AND the price it charges? Support your answer.
Consider other proposals to replace the federal income tax structure with a flat tax structure or a national sales tax. How would these alternative tax proposals affect income distribution?
Suppose you get a student loan for $8,000, and your payments are deferred until after you graduate, 2 years from now. Then, you will make 15 yearly payments (starting 2 years from now). What are your payments? The interest rate is 8%/year.
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