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Assume that the MPC is 0.8, while the sum of planned investment, government purchases, and net exports is $500 billion. Suppose also that the government budget is in balance.
What is the sum of saving and net taxes when desired spending equals real GDP? Explain.
What is the value of the multiplier?
Explain why the multiplier is related to the slope of the consumption function.
A company produces output with a constant marginal cost MC = 2. Its output is consumed by two types of customers a and b, with demand functions
Illustrate what is the logic of a firm setting and exercising the application of a mandatory retirement age? What are the pros and cons of the mandatory retirement practice from the perspective.
Explain how the invisible hand fights back when government try to overrule market forces with price controls.
A local surf store estimates that their average consumers demand a year is P=3.5-0.5Q, and knows that the marginal cost of each rental is $0.5.
Compute the marginal cost and marginal revenue of each unit of output and enter these figures in the table.
Assume that, in a perfectly competitive market at the profit maximizing quantity, the market price is greater than average total cost.
According to Colander, the perfect definition of economics. The three central coordination problems any economic system must solve.
Describe the Soviet Rapid Development Model
Nowhereistan is a poor country in an island in middle of nowhere. It produces only apples, bananas and oranges. The following are the information for 2009 (base year) and 2010
Best Buy and Circuit City are competitors in the customer electronics market. Both have relatively large margins on plasma TV's. Essentially,
Dilomatic tensions over the war with Iraq also patriotic fervor led the state legislature in South Carolina to initiate a resolution boycotting French products.
Bridget has limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese.
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