Reference no: EM13998649
1. What is the difference between the study of microeconomics and the study of macroeconomics? Provide two examples of each form of economic analysis.
2. Evaluate the following statement…”In order for a model to be useful, all assumptions used to create the model must be completely realistic”.
3. Can rational behavior be applied to gambling? What is the difference between gambling and the selling or buying life insurance?
4. Identify which of the statements below use positive economic analysis and which use normative economic analysis.
a. The government should not regulate the education system because recent problems have demonstrated that it does not know what it is doing?
b. The elimination of barriers to the free movement of individuals across European boarders has caused wages to become more equal in many industries.
c. Paying members of Congress more provides them with less incentive to commit wrongful acts.
d. We need more restrictions on companies that pollute because air pollution is destroying our way of life.
5. Distinguish between scarcity and shortage. Provide an example for scarcity and shortage.
6. It is not uncommon for someone to say something like “if we can put a man on the moon we should be able to… ”, followed by the person’s favorite project. What response can an economist make to this person?
7. What can a nation do to increase its economic growth? Why is economic growth among the major economic goals of all countries?
8. Discuss the fundamental questions that all nations’ economies must address?
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What stage of the business cycle
: Examine the level of business activities in the U.S. economy over the past few months. Which trends do you find of interest? What stage of the Business Cycle is the U.S. economy, given the current levels of business activity?
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How much of the annual payments is interest
: Jonathan borrowed $10000, at 6% annual compound interest. He agreed to repay the loan with five equal annual payments at end of years 1-5. How much of the annual payments is interest, and how much principal is there in each annual payment?. (Complete..
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What output level will yield the largest possible profit
: A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable cost of $17.50 per unit for the first 50 units and then $37.50 per unit for all successive units. What is the average varia..
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What is effect on deposit-to-currency ratio-nominal money
: Consider an overlapping-generations model with inside and outside money, where the rate of return on inside money is x, while the rate of return on outside money is 1 z. What is the effect on the deposit-to-currency ratio, nominal money stock M1 and ..
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Study of microeconomics and the study of macroeconomics
: What is the difference between the study of microeconomics and the study of macroeconomics? Provide two examples of each form of economic analysis. Evaluate the following statement…”In order for a model to be useful, all assumptions used to create th..
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What is the equilibrium level of capital when money stock
: Assume that fiat money and capital are perfect substitutes as assets and that individuals wish to hold the one with a higher rate of return, but that it takes time to adjust capital holdings. In equilibrium individuals hold both assets. What is the e..
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Consider an economy inhabited by overlapping generations
: Consider an economy inhabited by overlapping generations of two-period-lived individuals, each of whom receives an endowment of y in the first period of life and none in the second. The population of newborns grows as follows: Nt = nNt−1, where n > 1..
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Compute revenues and profits at each output rate
: The following table depicts the daily output, price, and costs of a monopoly dry cleaner located near the campus of a remote college town. (See page 540.) Output (suits cleaned) Price per Suit ($) Total Costs ($) 0 8.00 3.00 1 7.50 6.00 2 7 .00 8.50 ..
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Regarding citizenship status of senator ted cruz of texas
: After your review of the United States Constitution, and in consideration of the controversy amongst Republican party Presidential nominees regarding the citizenship status of Senator Ted Cruz of Texas, is he indeed eligible to run for President of t..
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