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How does the older theory of mercantilism differ from the liberal economics that developed in the Enlightenment? What is the reasoning behind liberal economists thinking that free markets are the best way to organise economic production?
Explain how the development of ATM machines, automatic electronic payment, NETs and internet banking affect the money multiplier.
The Wall Street Journal (newspaper) of September 9, 2016, reported on recent increases in the price of gasoline. The article stated "higher prices for gasoline are decreasing the demand for gasoline." Which of the following statements accurately desc..
Does it make sense for a company which assembles multiple outsourced parts to produce a whole unit finished product
For a given firm the MRPL = $50, and the MRPK = $100, while the PL = $10 and the PK = $20. What are the general case rules for producing at least cost and maximizing profits? Is the above firm maximizing profits? Why or why not? What (if anything) ca..
The individual demand for a slice of pizza at Sam’s Pizza is given by QD = 6 – P. Assume the marginal cost of a slice is constant at $1 and the marginal revenue function is 6- 2Q. What is the profit-maximizing price and quantity if Sam’s sells all pi..
Suppose Mike’s utility consists of consuming two ordinary goods: Hotdogs (normal good) and beer (inferior good). Quantity and price for hotdogs and beer are Xh, Xb, Ph and Pb and his income is I. Draw Mike’s indifference curve, budget line and show t..
Which of the following people would be classified as unemployed?
The answer to this question goes a long way to explain why with many welfare programs in the USA, only a fraction of the people eligible take.
All of the following could immediately or eventually lead to an outward shift of a nation's production possibilities curve, EXCEPT:
Mrs. Siegal has two alternative activities to help relieve her backache. In the first, she can visit a physiotherapist. The total time for a physiotherapist visit, including travel and waiting, is two hours. Mrs. Siegal earns a wage of $20 an hour. I..
In the neoclassical model of business fixed investment, under what conditions will firms find it profitable to add to their capital stock?
In class we have dealt with the profit function defined as:
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