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Which of the following is true of the European currency unit a) used a medium of exchanging goods and services b) accounting entry between 2 European nations c) it was denominated in the British pound d) primary international reserve asset of most nations around the world
Gasoline prices in the United States decreased significantly between 2008 and 2009. A decrease in the price of? gasoline, holding other things? constant, will cause which of the following to? occur?
The pre-analytical vision of the circular flow model holds that the economy:
The chancellor said employers would be forced to pay staff a minimum of £7.20 an hour from next April 2016, and raise wages by 6% a year on average to around £9 an hour by the end of the year 2020. How this changes in the minimum wage, could possibly..
Suppose that an economy’s production function is cobb-douglass with CRS(Y=AK^α * L^1-α ) and α=.3. What fractions of income do capital and labor receive? Suppose that the capital stock decreases by 15 percent. How much does output increase or decreas..
The banking system is a fractional reserve banking system with a desired reserve deposit ratio. Banking system is a fractional reserve banking system.
Let us imagine you are a consultant who has just been hired by a small business owner as an industry specialist. For this discussion you will identify one specific small business that you own, know the owner well or frequent as a customer. As the bus..
A month later, Bob buys a $1000 government bond from the Fed with this money. A) What happens to the money supply (M1)? Does it increase or decrease? By how much? The money supply decreases by $1000. B) How would this impact Bob's future spending? Un..
Social Security has revenues of $1.8 trillion and expenditures of $1.3 trillion. The nonsocial Security budget has revenue of $2.1 trillion and expenditures of $2.4 trillion. The official budget will report a _______________ (deficit/surplus) of $___..
Explain why firms should not shut down in the short run until price falls below average variable cost. 3. Suppose your economics professor publicly states that she grades on a curve
Three years ago, you purchased 192 shares of IBM stock for $101 a share. Today, you sold your IBM stock for $117 a share. For this problem, ignore commissions that would be charged to buy and sell your IBM shares and dividends you might have received..
A person who paid $10 for an umbrella in the U.S. sees the exact same umbrella in a store in London, England for 6 British pounds. If the person could expect the real exchange rate to be 1 U.S. umbrella per 1 English umbrella, then the person could i..
The Wall Street Journal's experience after it increased its cost to 75 cents. Illustrate what implicit assumptions are the publishers also the analysis making about cost elasticity.
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