Reference no: EM131220369
Macroeconomics Problem Set 1:
Laughlin
Answer the following questions completely. Be sure to define you economic terms and use graph when appropriate.
What is the fundamental problem in economics? How does that problem drive the choices that societies make? Given this problem, what economic systems have developed? Explain in an essay. Be sure to define your economic terms.
Given the market for Teslas, illustrate (that means graph!) how the following events would affect the supply ordemand for Teslas. Which non-price determinant caused the shift of demand or supply? What happens to price and quantity after the change?
a. The price of gas (a substitute) goes up significantly.
b. The Consumer safety board issues a statement that Teslas have the tendency to explode.
c. There is a automotive workers labor strike and half of the Tesla workers walk off the job.
d. There is a large tax increase that affects American consumers (assume that Teslas are normal goods).
e. The price of plastic increases significantly.
What is the argument for government intervention in pollution abatement? Use the theory of negative externalities and graph to explain your answer.
In what way is the GDP measurement important? What are the strengths and weaknesses of National income accounting?
Use a Production Possibility Frontier model to illustrate a student's limited time for study. Suppose a student has 10 hours to study and her study possibilities are as follows:
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Economics (pages of text read)
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0
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10
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20
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30
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40
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Math (problems solved)
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80
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60
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40
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20
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0
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Construct a Production Possibility Frontier, be sure to label your axes. What is the opportunity cost of one math problem in terms of reading pages of the econ text? What happens to the graph if the student gets a calculator that makes her twice as fast in solving math problems, but it does not affect econ. How is economic growth represented on a Production Possibility Frontier graph?
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Journal entry to close income summary assuming
: Bill Beck, Bruce Beck, and Barb Beck formed the BBB Partnership by making capital contributions of $74,700, $290,500, and $464,800, respectively. They predict annual partnership net income of $492,000 and are considering the following alternative pla..
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Fundamental economic concepts remain the same
: Economics and knowledge are related. While fundamental economic concepts remain the same, obtaining and applying knowledge has made the process of economic theory more practical. In the following discussion, consider the importance of knowledge in..
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Does an asset typically have a debit or credit balance
: Does an Asset typically have a Debit or Credit balance? Does a Liability typically have a Debit or Credit balance? What are the sections in the P&L, and some typical accounts in each?
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Financial innovation on the demand for money
: Graphically illustrate and explain the impact of an increase in real GDP and simultaneous financial innovation on the demand for money. State all assumptions.
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What is the fundamental problem in economics
: What is the fundamental problem in economics? How does that problem drive the choices that societies make? Given this problem, what economic systems have developed? Explain in an essay. Be sure to define your economic terms.
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The economic order quantity is approximately
: Cartwright Graphics uses a special purpose paper on 80% of its jobs. The paper is purchased in 100-sheet packages at a cost of $100 per package. Management estimates that the cost of placing and receiving a typical order is $15, and the annual cost o..
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Find the transfer function of the whitening filter
: Find the transfer function of the whitening filter for this input process. Be sure that the filter is causal. - Sketch a circuit which will realize this transfer function.
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What is journey entry for this transaction
: The firm delivers goods with a sales price of $375,000 to customers during 2014, as contracted. This amount includes the goods ordered on 11/15/2013 ( this transaction was dr cash 45,000 and cr unearned revenue 45,000). the remaining goods were sold ..
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Construct foam or clay models of primitive solid shapes
: How would the pieces have to change if none of the sides of the prism were parallel to the base of the cone? Try intersecting the prism with the cylinder and then the cube, at both normal and skew angles.
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