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The Federal Reserve wants to increase the money supply by printing and distributing 1 million dollars worth of currency notes. What will be the actual increase in money supply if the public holds one fourth of the currency as cash, and deposits rest of the money in banks that hold 5 percent of their deposits as reserves?
Investigate the distribution of income in the United States from the 1960's. The Bureau of Labor Statistics (bls.gov)or the US census government website census.gov may be good sites. Is wealth distribution and income distribution the same thing? Are ..
With the understanding of fixed and variable costs and what those mean to a business in both the short run and the long run, address the following questions in your analysis: Why does it makes sense for an airline to offer discounted fares to student..
A bridge design firm is performing an economic analysis of two mutually exclusive designs for a highway overpass. The steel girder option has an initial cost of $2.08 million, and the concrete option has an initial cost of $2.5 million. Based on the ..
Why is the U.S. GDP so much higher than that of Mexico? Would the same reasons apply when we compare the U.S. GDP to Canada's GDP?
Describe what is meant by a price-consumption curve. How can it be utilized to help determine an individual’s demand curve? How can one derive the market demand curve from the demand curves of the individuals who make up the market?
Once the crowding-out effect is accounted for, how will the following events affect the aggregate demand curve, as well as real interest rates? Use a Keynesian perspective. The Federal Reserve issues new discount loans.
Suppose that you own a 25 year old movie theater in Micropolis. It has 6 screens and a concession stand. Across town there is a 7 year old movie theater with 4 IMAX screens and 20 more regular screens. Do you think that your firm (the small theater) ..
An electric utility uses natural gas as fuel for a large multi-unit power plant. With all units in-service, for a given hour the plant's fixed cost is $120,000 and its variable cost is $50 per megawatt demanded. What is the hourly demand in megawatts..
Assume that domestic US savings equals domestic US investment, why would you think that in this case the “glut of savings” from China could be destabilizing in the US?
If a project is efficient (its total benefits exceed its total costs), would it be possible to allocate the cost of the project in a manner that would provide net benefits to each voter? Why or why not? Explain. Will efficient projects necessarily be..
Suppose we are with a real estate agency that has the following houses listed in a specific geographic area. $150,000; $146,000; $152,000; $155,000; $143,000; $157,000; $180,000; $148,000; $154,000; $146,000; $155,000
Firm i produces its product in a perfectly competitive market. In the figure below, the Average Total Cost and Marginal Cost of producing that product are given by the ATC and MC curves, respectively. Find the profit maximizing quantity, and call it..
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