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What is the opportunity cost? Should individuals and nations specialise in producing goods or service for which they have comparative advantage or absolute advantage? Why?
Does law of diminishing returns hold at low production? Why? Why the returns will diminish eventually?
Which of these is logically impossible (when there are no liabilities): A) Large wealth but small money holdings B) Large wealth but small saving. C) Large saving but small money holdings. D) Large money holdings but small wealth. E) Large income but..
Picture the used car market: Cars are either high, medium, or low quality. To buyers, high quality cars (which never break down) are worth $8,000, medium quality cars (which sometimes break down) are worth $5,000, and low quality cars (which often br..
You know that you are operating in a monopolistically competitive market, that is, you are a small part of a large market with many competitors in this market. Should you increase or decrease production? Should you increase or decrease price?
Stock returns and your retirement account: Suppose your retirement account has a balance today of $25000 and you are 20 years old. If you are invested in a diversified portfolio of stocks, you might hope that the historical return of about 6% continu..
Assume the market price of wheat increases by 5 percent causing farmers to increase wheat production by 5 percent. Calculate the price elasticity of supply. Using the formula for price elasticity of demand or supply, answer the following question:
You are the manager of a firm that receives revenues of $50,000 per year from product X and $100,000 per year from product Y. The own price elasticity of demand for product X is -2, and the cross-price elasticity of demand between product Y and X is ..
What is community policing? How does it differ from traditional policing? Does community policing offer an opportunity to improve policing services in the United States? Why or why not?
All else being equal, what would be the predicted consequences of the change in the real exchange rate from 1997 to 2005 for china's net exports and official foreign exchanges reserves?
Assume income is $10, the price of each slice of pizza is $1, and the price of each glass of beer is $2. Now change income to $12 and show a demand curve for pizza.
Import bans import quotas voluntary export restraints and tires on Goods all I increase equilibrium quantity and price decreases equilibrium quantity and price see increases equilibrium quantity but decreases price or decreases equilibrium quantities..
The GDP deflator is a good cost of living index. GDP is more volatile in the short-run than the long-run. All government spending is in GDP. If GDP is adjusted for purchasing power, the US usually improves its relative position.
The daily demand for a product is 17 units with a standard deviation of 2.6 units. The review period is 30 days with a lead time of 14 days. Management has a set policy of satisfying 95% of demand from items in stock. At the beginning of the review p..
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