Under very high rates of inflation

Assignment Help Business Economics

Reference no: EM138304

Q1. Market efficiencies and inefficiencies happen all around us. Consider the definition of perfect competition and give an example from your personal life.

Now, consider the four sources of market failure and examine how each led to an inefficient allocation of resources. Take a moment to look around you and give an example for each of the four sources of market failure. Why do you feel these are good examples?

Q2. Under very high rates of inflation, why would people prefer to use a barter system to buy goods, rather than use paper money? Please explain.

Reference no: EM138304

Questions Cloud

Constant yearly rate of inflation : What constant yearly rate of inflation would lead to the price rise observed over those two years.

Difference between the index number : What is the difference between the index number for the year you were born and the Consumer Price Index for January of 2012.

Encourage low-risk behavior : Explain how high must the deductible be to encourage low-risk behavior

Inventory systems quickly transmit large demand : Explain how could those same inventory systems quickly transmit large demand shocks directly to sudden, deep recessions.

Under very high rates of inflation : Under very high rates of inflation, why would people prefer to use a barter system to buy goods, rather than use paper money.

Monopolistic competitive market : firm competing in a monopolistic competitive market. What conditions exist when economic profits are maximized.

Widget industry in any town is a monopoly : The widget Industry in Any town is a monopoly, controlled by Widget Corp. Its demand curve for the local market is given.

New york city rent stabilization law : The New York City rent stabilization law of 1969 established maximum rental rates for apartments in New York City

Consumption change this year in absolute dollars : Explain how much does consumption change this year in absolute dollars as a result of a $5,000 annual tax cut to your income, if the tax cut.

User Account

All Pages