During the 1980s, 1990s, and the first decade of the 21st century, the United States experienced a significant inflow of capital from abroad. For example, Toyota, BMW, and other foreign car companies built auto plants in the United States. a) Using a diagram of the US capital market, show the effect of this inflow on the rental
1. Define transfer payments and give an example. Explain why transfer payments are not included in GDP. 2. Which components of GDP (C,I,G,X,M) would be affected by the following: a. You buy a pizza. b. You buy a new house. c. Tennessee resurfaces Interstate 40. d. You buy a Lamborghini. e. You buy a new stove. 3. Th
Consider the market for milk. For each of the following events, state (a) whether it affects supply or demand (or both, or neither), (b) which direction supply/demand shifts, (c) the effect on price, and (d) the effect on quantity. 1. The price of orange juice, a substitute, rises. 2. In order to support dairy farmers, the g
Using the Internet, and/or other sources of literature, locate an article concerning trends in consumption patterns. Prepare a 1,050-1,400-word paper in which you: - Define Economics - Define Microeconomics - Define Law of Supply - Define Law of Demand - Identify the factors that lead to a change in supply and a change i
Question: Jane spends all her income on hot dogs and caviar. Her demand curve for caviar is inelastic at all prices for caviar. Unfortunately, the accident at Chernobyl has caused the supply of caviar to fall and the price to rise. What has happened to Jane's consumption of hot dogs? Explain. You should assume that the accident
Indicate whether each of the following statements is TRUE or FALSE and explain your answer. a. If a monopolist is producing a level of output at which demand is inelastic, the firm is not maximizing profits, and increasing output will decrease total revenue b. When a monopolist maximizes profits, the price is greater than
Market shortages and other concepts are examined in a multiple-choice quiz given with detailed answers.
1. When there is a shortage in a market, prices are likely to rise because: A. Buyers do not wish to buy as much as sellers want to sell. B. Some buyers will attempt to outbid other buyers for the available units of output. C. Higher prices will induce sellers to reduce their production. D. All the above. 2. David
Devise a supply and demand diagram for oil showing the effect of a global recession, then explain OPEC's objectives and policies.
i. Consider the supply and demand for oil. Starting from a point where supply and demand are in equilibrium, explain with the use of a diagram how a global recession is likely to affect the equilibrium price and quantity of oil bought and sold. How do the slopes of the supply and demand curves affect your analysis? ii. What o
Select an existing good or service from the Will Bury's Price Elasticity, Incremental Costs, or Thomas Money Service Inc. scenarios, or select an existing business with which you are familiar. Please provide help on writing a business proposal to improve an existing good or service for the chosen company. Include assumptions
Suppose that the unemployment benefits provided by the private sector (firms) are increased permanently, please answer the following questions: A) What will happen to Y (GDP), r (real interest rate), P(price level), and I(investment), in the short run? B) What will happen to Y, r, P, and I, in the long run?
1. Suppose the Federal Reserve sells government securities from its existing holdings to the financial sector and the non-bank public. Trace through the expected consequences of this secondary market action on the banking system - reserves, loanable and investable funds, and deposits; financial markets - bond and stock prices,
A television station is considering the sale of promotional DVDs. It can have the DVDs produced by one of two suppliers. Supplier A will charge the station a set-up fee of $1,200 plus $2 for each DVD. Supplier B has no set-up fee and will charge $4 per DVD. The station estimates its demand for the DVDs to be given by Q-1,600-200
Consider the supply of money graph above. What has happened to the quantity of money demanded?
I have some economics questions that I need help with. They are in the attached file. Thanks!
Suppose that the technology of manufacturing widgets is that every firm entering the market has the same total cost curve, as follows: TC=1000+5Q+0.1Q^2 Where : TC=Total cost per unit time Q=Number of widgets produced per unit time The market demand for widgets is: Q=700-8P Where P=price ($/widget) a. What is the ma
During the summer of 1997, Congress and the president agreed on a budget package to balance the federal budget. The "deal," signed into law by President Clinton in August as the Taxpayer Relief Act of 1997, contained substantial tax cuts and expenditure reductions. The tax reductions were scheduled to take effect immediately, ho
Suppose the value of the French Franc in terms of the dollar is: 50 on October 12 , and 44 on October 17 . By how much has the Franc appreciated or depreciated against the dollar? The value of the Franc rises against dollar by 12 The Franc has actually depreciated by 12%. The Franc has remained consta
1. The Federal Reserve System regulates the money supply primarily by: controlling the production of coins at the United States mint. altering the reserve requirements of commercial banks and thereby the ability of banks to make loans. altering the reserves of commercial banks, largely through sal
1. Give an example of a good you purchase or market at your workplace to show why demand curve slopes downwards and why supply curve slopes upwards? 2. What factors shift your demand for goods (note: price is not a demand shifter)? Give an example of how a demand determinant shifted your demand for a good. 3. Describe a r
1. Answer the following series of questions given the data for Israel and Canada below. Daily output: Israel can produce 100 computers or 50 tanks Canada can produce 40 computers or 15 tanks Which country has the absolute advantage in the production of tanks? Why is it this country? Which country has the comparative
Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units. Southeastern estimates its annual holding cost for this item to be $ 25 per unit. The cost to place and process an order from the supplier is $ 75. The company
1. What are possible causes of a movement up or down along the demand curve? What are possible causes of a movement up or down along the supply curve? What the short and long-term effects of these changes can be? 2. What are possible causes of a rightward or leftward shift in the demand curve? What are the possible causes of
Redstone Clayworks, Inc. is located in Sedona, Arizona and manufactures clay fire pits for patios. They are one of about two dozen firms around the world that manufacture and sell clay fire pits for retailers such as Home Depot Lowe's Front Gate, and other upscale home product chains. There is virtually no product differentiat
The problem is this: d. Suppose there is a series of snow storms, what does it do to the supply and demand curves? What about if the wages for park rangers increased? Show direction of change on your graph, e. Suppose the prices increases from $2 from the equilibrium price. Use your supply and demand curves to determine th
The supply and demand for the paper firm is given by: QS=100P-5000 and QD=0.5 i + 0.2A-100P+5000 where Q is the quantity per year, P is price, I is income per household, and A is advertising expenditure. a. If A=$10,000 and I =$25,000, what is the demand curve? b. Plot the demand curve found in part A wit
Conditions that exist under perfectly competitive, monopolistically competitive, oligopolistic and monopoly markets; and real-life examples of each.
a) What are the conditions for a perfectly competitive market? b) What are the conditions for a monopolistic market? c) What are the conditions for a monopolistic competitive market? d) What are the conditions for an oligopolistic market? e) How would you explain the differences among these market structures? Identify w
A limousine service is located on the north side of Indianapolis. It specializes in transporting people to and from the Indianapolis airport, although it will deliver people anywhere in the Indianapolis area. It competes with taxis and public transportation as well as people deciding to drive their own cars. The demand for the f
Use the following data for the exercises below. Price Quantity Supplied Quantity Demanded $20 30 0 $18 25 5 $16 20 10 $14 15 15 $12 10 20
4. â??Competition in quality and service may be just as effective as price competition in giving buyers more for their money.â? Do you agree? Why? Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition. 9. Why is there so much advertising in monopolistic competition
Explore the different measures of the money supply, and explain why the different definitions are important.