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If the money supply is growing at 8%, the real rate of growth of GDP is 2%, and financial innovations are reducing the demand for money by 0.5% per year, what should the long-run inflation rate be?
A monopolist faces the inverse demand curve p = 64 - 2q. At what level of output is his total revenue maximized?
The change in equilibrium quantity will be:
In each of the following examples determine (1) the market in question; (2) whether a shift in demand or supply occurred the direction of the shift and what induced the shift; and (3) the effect of the shift on the equilibrium price and quantity.
All of the following are characteristics of "property rights" EXCEPT that:
Write a letter of proposal to a local retailer to carry a specific product or provide a specific service. Gather data from friends, family, coworkers and other target market consumers to justify the need for the product in this specific retail locati..
Explain why it is not possible for one agent to have a comparative advantage in all goods, a worked example with calculated values would be useful.
GM Company is considering opening a dealership in Germany, but is unsure if it can earn an 8% rate of return that is promised by an alternative investment (of similar risk). Identify and describe and three rate base misconceptions? Think of the “rate..
A risk-neutral individual would:
Suppose that the Fed conducts an open-market purchase of $1,500 in securities from the nonbank public. The Fed pays for these securities using currency, which the nonbank public holds in the form of cash. Show how this transaction affects the liabili..
Assume that Country A has a population of 500,000 and only produces 1 good: cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfil all the demand. What is the composition ..
What the slope of the budget constraint? Why is it this value? What is the endowment point? Why must changes in the interest rate cause a rotation in the budget constraint about this point?
An increase in the price of a good causes a:
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