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1) Differentiate process of creating money from minting coins or printing bills
2) Explain how the Federal Reserve System uses government borrowing to create money
3) Describe at least one other method by which new money can be created by any financial institution.
Cultural relativism is the practice of evaluating a culture by its own standards. Cultural relativism requires understanding unfamiliar values and norms as well as suspending cultural standards we have known all our lives. What do you think can be le..
What is autonomous consumption? Can you explain what autonomous consumption means and use it in an example?
Suppose Frank is a monopolist in the garden gnome market and is producing his profit-maximizing level of output. Suppose further that at this level of production his average total cost is $150, his average variable cost is $130, and the price of one ..
How has the educational system affected the quality of our labor force? Explain the Malthusian theory of population. Is it relevant today anywhere in the world? Explain where and why. How does the American savings rate compare to that of other leadin..
When demand is elastic, the____________effect dominates the_________effect. When demand is inelastic, the___________effect dominates the_____________effect. When a change in price causes a change in quantity demanded, total revenue always moves in th..
A movement downward and to the right along a demand curve is called a(n)
When the Bank of Canada's foreign exchange traders go into the market to support the Canadian dollar, they trade US dollars from Canada's reserves for Canadian dollars that other people are trying to sell. The Canadian cash resulting from this transa..
An eccentric scientist invents a very useful gadget and makes huge profits. Unfortunately, he is so preoccupied with his newly found fame and fortune that he forgot to secure a patent for his special product. What can be expected to happen to the sup..
Assume that in short-run equilibrium, a particular monopolistically competitive firm charges $10 for each unit of its output and sells 48 units of output per day. The average total cost (ATC) for those 48 units is $4. What will be its economic profit..
Twenty farmers, in a society with 100 people, would collectively gain $100,000 from a farm subsidy. All 100 people would pay the $300,000 cost of the subsidy program. Are the farmers willing to lobby the government in support of the subsidy? Why or w..
How does this alter the isocost and isoquant graph? d.Given these forecasts, where should you expand production?
Suppose two identical firms competed in prices (Bertrand competition) in a market. Both firms face a constant marginal cost MC = 25. What is the equilibrium price charged by both firms? Suppose now that both firms implemented a price match guarantee...
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