All social costs occurred under hyperinflation described

Assignment Help Business Economics

Reference no: EM131172375

Every day, workers in Oceania receive salary twice, once in the noon and once in the afternoon. Usually, the afternoon salary is dramatically higher than the noon one while the noon one is astonishingly higher than yesterday’s afternoon one. After getting the money, people rush out their offices seeking for foods and other necessaries. In fact, they have a 2-hour rest after each salary payment merely for this purpose. Even this is limited since foods and other goods are more and more difficult to be found. Shops and salesmen refuse to sell anything because it is too hard for them to change the tags. It is especially hard for the poor because no one wants to lend anything. Even the rich choose not to hold extra local currencies; instead they exchange them to US dollars in the underground market.

A) Please list all social costs occurred under hyperinflation described above. Hint: Please only list what is mentioned above and provide facts accordingly to support your argument.

B) What do you think happened to those middle class residents who used to have some savings in local currency? Based on your answer, why do rich people tend to exchange for US dollars nowadays?

Reference no: EM131172375

Questions Cloud

How much is firms total-total variable and total fixed costs : The figure above represents Giuliani’s farm a profit-maximizing perfectly competitive firm with the price of its product been equal to $7. Explain your answers. How much is the firm's total, total variable, and total fixed costs? How much is the firm..

Suppose wages in the market for plumbers increase : Suppose wages in the market for plumbers increase. Some plumbers start taking on extra plumbing jobs while others cut back on the number of hours they work. What could explain? this?

What is the nash equilibrium for the one-shot game : Burger King and Wendy’s are engaging into the following one-shot game: if Burger King advertises and Wendy’s does not, Burger King will make $20 million in profits and Wendy’s will make $6 million. Write the payoff matrix for the above game. Does Bur..

Monopolistic competitive firm-what quantity will be produced : The figure above represents Athina's pool supply store, a monopolistic competitive firm. Explain your answers. What quantity will be produced? What price will be charged? What is Athina's economic profit or loss? Is this a long-run equilibrium? Why o..

All social costs occurred under hyperinflation described : Every day, workers in Oceania receive salary twice, once in the noon and once in the afternoon. Usually, the afternoon salary is dramatically higher than the noon one while the noon one is astonishingly higher than yesterday’s afternoon one. Please l..

Distinction between general and specific human capital : Which of the following is a distinction between general and specific human capital? The gains from specific training in human capital tend to go to the:

The gains from general training in human capital tend : The gains from general training in human capital tend to go to the: The extra wage that is paid to an individual to attract him/her to a less desirable job is called:

Impacts on unemployment rate-labor force participation rate : Dr. Frankenstein graduated from PSU in 2009 and entered the labor market seeking for a position. At the beginning of 2010 he found his first job in North Pole. But due to lack of skills required, he lost his job at the beginning of 2011. What are the..

Price elasticity of demand for automobiles : A Researcher estimated that the price elasticity of demand for automobiles in the US is -1.2, while the income elasticity of demand is 3.0. Next year, US automakers intend to increase the average price of automobiles by 5%, and they expect consumers’..

User Account

All Pages