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Short Essay: Discuss the history of crises in the financial system since 1980. This suggests there are strong negative externalities that require the financial system to be regulated differently than other type of businesses.
Discuss whether each statement is an example of positive economics or normative economics or if it contains elements of both: an increase in the personal income tax will slow the growth rate of the economy.
The free-rider concept occurs when a person enjoys the benefits of a good or service without paying for it. Music files are nonrival and effectively nonexcludable, thus creating a free-rider problem. Do you concur that the best solution is for the co..
A firm has a demand equation Q=200-5P and is currently charging $2 for its product. The firm is currently maximizing profits, and its advertising elasticity of demand is .005. Determine the firm's optimal advertising-to-sales ratio. Determine the pro..
In what sense does the Fed "create money"? Suppose that the minimum required reserve ratio for banks was 1/11. Also suppose that banks held no excess reserves and that currency in circulation was unchanged. What action in the Treasury bill market wou..
Discuss the relationship between economics, business concepts (such as targeted marketing), social status, and wellness. Discuss how the relationship you describe relates to the concept of wellness as defined in this course and how it relates to spec..
A firm uses steel and aluminum to produce auto parts. The current input mix used by the firm is such that the marginal product of aluminum is equal to 800 units, while the marginal product of steel is equal to 500 units. what the concept of “ratio of..
Explain why is the index of industrial production an appropriate coincident indicator. Why is the average prime rate charged by banks an appropriate lagging indicator.
Draw a production possibilities curve for time. On one axis put sleep time and on the other put awake time. You have 24 hours available in a given day. Indicate the combination that describes your allocation today. Also indicate a combination that is..
Calculate GDP loss and government expenditure needed to eliminate this loss if full employment GDP is $400, unemployment rate 8.9%, and the MPC is 0.8.
Given the number of successful prosecutions being brought, whether she will reform the Welfare of Animals Act 2011
The wheat harvesting season in the American Midwest is short, and most farmers deliver their truckloads of wheat to a giant central storage bin within a two-week span. It will cost $200,000 to enlarge the bin during off-season. How long will it take ..
A military conflict forces the shut-down of major crude oil pipeline. World oil prices soared to an 18 month high. Show the effects in the crude oil market.
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