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The Fed has since ended it's quantitative easing policy and has stuck with leaving interest rates at 0%. For the past 6 months the Fed has been toying with the idea of gradually increasing the rates. It has yet to do so even though many "Experts" have predicted that it would begin. Why do you think the Fed has resisted a rate hike? Do you think raising interest rates at this time makes sense?
describe how each of the 4 factors contributed to the elasticity of the good. Is the product considered elastic, inelastic, or unitary elastic.
What is the difference between diminishing returns and decreasing returns to scale? Why are cost curves U-shaped in the short run?
A tropical country can produce winter coats, but there is no domestic demand for these coats. Explain how this country can gain from free trade in winter coats.
a fictional survey shows a decrease in drug use by young people in brooklyn. in the ensuing debate two hypotheses for
Suppose you are a manager at Bank of America and the Federal Reserve raises the required reserve ratio from 10 percent to 12 percent. What actions would you have to take? How would your actions and those of other bank manager’s end up affecting the m..
What are the similarities and differences in free versus fair trade arrangements? How are these reflected in the actual prices of coffee? Are fair trade principles both an effective and economically efficient trading mechanism? Is fair trade coffee s..
According to the graphical method used in class, figure out how a decrease in government purchases (G) is going to affect the IS curve. Is decrease in government purchases an expansionary fiscal policy or a contractionary fiscal policy? Why?[Hint: Us..
The sales manager for ABC Electronics wants to maximize his profit on the sale of two portable media player models, JVD-2000 and MDP-72. The wholesale costs of these models are $310 and $100 per unit respectively. Find the optimal number of the two d..
In an economic environment with no inflation. $10,000 is invested in a savings bond that yields a 7% annual rate of return for 8 years. For this particular bond, the investor has the choice of paying; Which tax option should the investor choose, and ..
The price of pizza can be expressed in terms of gallons of root beer. What is the highest price at which pizza can be traded that would make both roommates better off? What is the lowest price? Explain.
The ________ suggests that when real GDP equals potential GDP, quantity of money increases and brings equal percentage in the price level. Velocity of circulation, equation of exchange or quantity theory of money
Your company generated $3.7 million revenue in 2013. Annual costs/depreciation are as follows: cost of goods sold that year was $800,000; salaries and wages that were paid were $1,000,000; advertising costs were $30,000; depreciation was $50,000; oth..
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