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Macroeconomics

American Managers and ethical decline in the US

Do you believe that there are certain common characteristics or traits of American managers that have led to moral or ethical decline in US business over recent years and thus business scandals? If so, what are these characteristics and why do you think they are prevalent in US business and not other countries' business culture

Monoploy and Monopolistic Competition

If the Rhine Company ignores the possibility that other firms may enter its market, it should set a price of $10,000 for its product, which is a power tool. But, if it does so, other firms will begin to enter the market. During the next two years, it will earn $4 million per year, but in the following the next two years, it wi

Income Elasticity for Staple Foods

The income elasticity for most staple foods, such as wheat, is known to be between zero and one. a. As incomes rise over time, what will happen to the demand for wheat? b. What will happen to the quantity of wheat purchased by consumers? c. What will happen to the percentage of their budgets that consumers spend on wheat?

MR

When a firm is able to set its price, its price will always be less than its MR. Is this true or false and why??

Underinvestment in Education

"Why is it likely that in a system of private education (i.e., a system in which individuals pay for their own education) there will be underinvestment in education? *Remember, education, likes yard work, provides additional social benefit to the society."

The demand for a shake at a Juice Shop can be described by the equation

The demand for a shake at a Juice Shop can be described by the equation: Q= 1000- 240P + 80N, where Q denotes the number of shakes sold per day, P is the shakes price and N is the price of a shake at a nearby cafe. a. How many shakes will be sold if P=$1.50 and N= $1.20? b. Write down the equation for the firm's demand curve f

Calculate the Real GDP in Each Year

Calculate the real GDP in each year, assuming that the nominal GDP was $559 billion in the base year, $577 billion in year one, and $605 billion in year two; and that the price index rose from 100 to 104.5 in the first year, and up to 108.3 in the second year. If the price index 20 years before the base year was 41.2, and the no

Forecasting

Among the advantages of the _____________ technique of forecasting are ease of calculation, relatively little requirement for analytical skills, and the ability to provide the analyst with information regarding the statistical significance of results and the size of statistical errors. least-squares trend analysis

Tying arrangement

A tying arrangement exists when a. a company sells two products that are substitutes for one another. b. a company requires that a customer tie itself down by signing a long-term purchasing agreement. c. a buyer is required to buy both a specific product and its complementary product from the same supplier. d. a company

Adverse Selection versus Moral Hazard Incentive Problem

WHich of the following is an example of an adverse selection problem and which is a moral hazard incentive problem? In each case, give one method that the restaurant might use to reduce the problem 1) A restaurant decided to offer an all-you-can-eat buffet that is sold for a fixed price. The restaurant discovers that the cust

Goods and services

Which of the following is an example of how the question of "what goods and services to produce?" is answered by the command process? government subsidies for affordable housing laws regarding equal opportunity in employment government allowance for the deduction of interest payments on private mortgag

Average fixed cost, MR=MC

1. Average fixed cost is: a.AC minus AVC b.TC divided by Q c.AVC minus MC d.TC minus TVC 2. Economists consider which of the following costs to be irrelevant to a short-run business decision? a.Opportunity cost b.Out of pocket cost c.Historical Cost d.Replacement Cost 3. When MR=MC a.Marginal profit is maximized

SAR Publisher is a monopolist in publishing a textbook on Hong Kong economy.

3. SAR Publisher is a monopolist in publishing a textbook on Hong Kong economy. Besides the Hong Kong market, SAR Publisher also sells this textbook in the US. Suppose SAR Publisher can produce this textbook at a constant marginal cost of $20 per copy and the demand curves for the two markets are given by: QUS = 48, 000 - 600PU

Open & closed economies

1. A open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7. What is marginal propensity to save of this economy? *It looks as though enough information has not been provided.* 2. A open economy has a marginal propensity to import (MPI) equal to 0.2 and a margina

Supply Chain Inventory Management Question

Give an personal example of a reverse logistics system you've experienced as a consumer. Were you satisfied with the cycle time of the process and what steps did the company take to guarantee your satisfaction. Finally, answer the question as to whether you are more likely to quit patronizing a company because of their reverse o