The textbook claims that when people do not have to pay anything to use valuable resources, such as urban roadway space, they will continue using them until their value diminishes to zero. That often strikes people who have not yet become thoroughly familiar with the marginal way of thinking as wrong. Why would people choose t
In late June the Fed lowered its federal funds rate target from 1.25% to 1%. However between mid June and early August the yield on longer term 10 year Treasury notes rose from 3.1% to over 4.3%. This shows that Federal Reserve activity is irrelevant to the behavior of long term interest rates" Agree or Disagree with the u
Growth rates in real GDP for the past 5 periods are as follows Period % Growth Real GDP 1 +3.5% 2 +4.25 % 3 -2.0% 4 +2.5% 5 +4.5% Calculate the geometric mean rate of growth.
While Boeing and Airbus make airplanes, GE, Rolls Royce, and Pratt & Whitney make jet engines. Airlines make their deals with the aircraft manufactures on the aircraft they want and then make a deal with the engine manufacturers with respect to the engines for that aircraft. Suppose that Boeing decided that it wished to manu
Five different consumer types exist (A, B, C, D, and E) in equal numbers. They are interested in buying (at most) one of each good at their reservation prices (or at any price lower than their reservation prices). Easter time is approaching and a pet store is contemplating selling bunny rabbits and baby chicks. Parents seem
If American prices drift upward somewhat more rapidly than prices in the other mixed economies, the probable result will be: A) exchange controls. B) tariffs or quotas. C) value-added subsidies to exports. D) gradual overvaluation of the dollar. E) a trend toward gradual depreciation of the dollar.
Hate math 68. In an open economy, MPC = 0.6, MPm = 0.2. This implies that: A) MPS in the open economy is lower than in the closed economy. B) MPS = 0.4 only if the economy were closed. C) in the open economy, if GDP increases by 200 spending on consumption = 120. D) in the open economy, if GDP increases by 200
Explain the meaning of 'market segmentation'. Please cite 2 examples.
Fredonia has the following consumption function: C=100+.8DI Firms in Fredonia always invest $700 and net exports are zero, initially. The government budget is balanced with spending and taxes both equal to $500 each.
A. Find the equlibrium level of GDP b. How much is saves? Is savings equal to investment? c. Now suppose that an export-promotion drive succeeds in raising net exports to $100. Answer (a) and (b) under these new circumstances.
Using the expenditure approach calculate GDP from the following data: - personal consumption expenditures $1556 - net exports $132 - gross private domestic investment $162 - government purchases of goods and services $450 - personal income $1700 - corporate profits $600
Suppose the Fed's Beige Book reported that "in South Florida, bookings for the summer tourist season were off to a slower start than last year" and that "tourist counts and revenues were down in Hawaii and Las Vegas and at destinations such as golf schools and luxury resorts in the inter-mountain states and along the West Coast.