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Question: Sales of hybrid cars are on the rise. The Toyota Prius, while priced above comparable gasoline-only cars, is selling well. Other manufacturers are adding hybrids to their lines as well. What has been the cause of the rising sales of hybrids? Is this an increase in demand or an increase in quantity demanded?
An economy has 100 people divided among the following groups: 25 have full-time jobs, 20 part-time jobs, 5 has two part-time jobs, 10 is looking for jobs, 10 are discourage workers who has given up looking for jobs, 10 run their own businesses, 10 ar..
Define Identification of these terms and discuss its significance to international financial governance. The European Commission, The European Central Bank, The Second Banking Directive, The Financial Services Action Plan.
Research the hotel industry and describe the general environment and the forces in the industry. Using the dimensions of the general environment, identify some factors for each dimension that are influential for your industry.
a. What are her accounting costs? b. What are her opportunity costs?
Suppose an economy has overbuilt and suffers from excess capacity. A recession ensues due to firms cutting back on expenditures. Is deficient demand more easily remedied by monetary or fiscal policy? Explain
There exists a debate among monetary policymakers as to the appropriate inflation measure that should be used to guide policies. Four alternatives are the consumer price index, the consumer price index excluding food and energy prices, the personal c..
With an interest rate of 10 percent this person uses $100 current income along with an $80 bank loan to finance $60 of education. Explain how this individual should respond if interest rate increases. Discuss income and substitution effects.
Suppose the demand for wheat increased dramatically between 1950 and 2000 but the equilibrium quantity increased only slightly. Absent any other changes, what could explain the small increase in the equilibrium? The equilibrium quantity of wheat coul..
The Canadian economy is starting from equilibrium. The following shocks then hit the economy in order: interest rates rise, business taxes increase, and there is an expectation among consumers that there will be a severe increase in inflation over th..
Elucidate unemployment in relation to the Phillip's curve with an appropriate sketch.
Terms of trade Suppose that Greece and Germany both produce oil and stained glass. Greece's opportunity cost of producing a pane of stained glass is 4 barrels of oil while Germany's opportunity cost of producing a pane of stained glass is 10 barrels ..
The following information describes the value Lori Landlord places on having her five apartment houses repainted. She values the repainting of each apartment house at a different amount depending on how badly it needs repainting. Value of new paint o..
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