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What would be more effective in stimulating the economy? Tax cut or government spending (i.e., fiscal policy)? What about lowering interest rates and increasing money supply (i.e., monetary policy)? If you were the chair economic advisor to the President of the United States, what would be your advice to him? What does the Scripture have to say about money? Do you think that the economic problem we are facing today is partially due to our love for money and being too materialistic?
Listen carefully to the following video and summarize the main points that he is making and to what extent is it related to Adam Smith's invisible hand
Assume a manager of a profitable department store you're confronted with the pricing problem. You've two types of customers
if the government becomes more heavily involved in subsidizing some businesses and sectors of the economy while levying higher taxes on others, how will this influence the quantity of rent seeking how will this affect long term growth
Functions of Money) "If an economy had only two goods (both nondurable), there would be no need for money because exchange would always be between those two goods." What important function of money does this statement disregard. Suppose the money ..
Which of the following have traditionally been considered natural monopolies? Public universities, Public golf courses, public parks,public utilities
Suppose that you are a government official in charge of your country's fiscal policy. The country maintains a flexible exchange rate system. You are asked by your country's citizens to use fiscal policy alone to expand the country's..
Find a market price for hydrogen gas and normalize the energy content compared to the current local price of gasoline. Using octane as an approximation for gasoline energy content, compare the cost per kilojoule of energy of hydrogen to gasoline.
What is the interrelationship between the four financial statements? Why is it important to make comparisons using ratio analysis? What are the different ways you can make comparisons?
In the 1970s, savings and loan associations primarily earned their income from extending fixed-rate home loans. They extended many of these loans in the early 1970s when inflation was low. Were the savings and loans winners
Describe the difference between movement along the demand curve and a shift in demand. Provide an example to help the class understand the difference between the two.
Suppose a monopolist can purchase Labor at a price w = 36 and can purchase Capital at a price r = 25. The monopolist's production function is given by Q = L1/2K1/2. The demand facing the monopolist is given by P = 180 - 3Q. a) What is the Monopol..
Moral hazard and adverse selection are both examples of a) the principal-agent b)externalities in consumption c)efficiency in markets
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