What is each countrys opportunity cost of producing gloves

Reference no: EM13738670

Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling and grammar.

Sources must be cited in APA format. Your response should be four (4) double-spaced pages; refer to the "Assignment Format" page located on the Course Home page for specific format requirements.

Part A

1. Why is the money multiplier in the United States smaller than the inverse of the required reserve ratio? Provide one (1) reason.

2. Explain why depositing cash into a checking account does not change the money supply. Provide one (1) supporting fact.

3. Explain why the money supply does not change when one individual writes a check to another. Provide one (1) supporting fact.

Part B

1. Describe one (1) reason why the flexibility of wages and prices tend to favor the Keynesian economic view in the short run and one (1) reason why the flexibility of wages and prices tend to favor the classical economic view in the long run.

2. Refer the figure below and explain what happens in each graph (A, B, and C) when an economy is moving from a recession (point a) back to full employment.

Question 2

Part A

Imagine that it is the year 2199. Technology has progressed at an incredible pace. The latest discovery is the plutonium engine, which is capable of converting plutonium, a by-product of nuclear fission, into fuel to power the nuclear reactors in our new form of transportation, the rocket-car. However, because the firm that invented the engine, the Futures Unlimited Corporation, already has a government license to control and distribute the quantity of this certain isotope of plutonium on the market, it is now conceivably in charge of a monopoly on plutonium-fueled transportation.

1. Describe the economic outcome of this single-price monopoly in terms of profit. Provide one (1) supporting fact to support your response.

2. Describe one (1) way that the Futures Unlimited Corporation makes output and price decisions.

Part B

1. Would consumers benefit more from a tariff or a quota on imports? Provide one (1) supporting fact to support your response.

2. Consider the following weekly production possibilities of gloves and hats in Panama and Russia:

Russia Panama

Gloves 20 180

Hats 80 90

a. What is each country's opportunity cost of producing gloves and hats?

b. If the countries could, should they trade? Provide one (1) supporting fact to support your position.

Reference no: EM13738670

Questions Cloud

Suggested method of cost accounting : Two of the companies should be more likely to use job costing - write a one paragraph description of the business of the company.

Why do you feel that this value is important for our society : For this assignment, select one advertisement (print, commercial, etc.), and answer the following questions: Why do you feel that this value is important for our society

Characteristics and qualities that leader possesses : In a two page paper, discuss a leader who you would consider to be transformational. What are the characteristics and qualities that leader possesses that makes you think he/she is transformational?

Why global warming captured attention of environmentalists : why has global warming captured the attention of environmentalists, policy-makers, and the broader public at the turn of the twenty-first century?

What is each countrys opportunity cost of producing gloves : What is each country's opportunity cost of producing gloves and hats and if the countries could, should they trade? Provide one (1) supporting fact to support your position.

List the eight influence tactics : List the eight influence tactics in terms of how they are used by students to influence their university instructors. Which influence tactic is applied most often? Which is applied least often, in your opinion? To what extent is each influence tac..

How does the story of earth abides represent nature in city : How does the story of Earth Abides represent nature in the city? How does this representation reflect or contradict the place of urban nature in your own community?

Find what opportunity for us companies might you foresee : China and India have demonstrated trends toward Western-style consumption over the last decade. What opportunity for U.S. companies might you foresee

Evaluate security products from two competing vendors : Use the Web to research and evaluate security products from two competing vendors, such as antivirus software, firewalls, or antispyware software. For each product, describe its capabilities, for what types of businesses it is best suited, and it..

User Account

All Pages