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Tipping theory, though not new, is in the news lately, in reference to our "recession" (some say "depression"), and how we can get ourselves out of it, whatever we call it.
What is tipping theory? If you've never heard of it, you may research the topic. Then, how would you apply it to any part of our economy? Most important, where does it start? For instance, if you apply the theory to the auto industry, then what would tip new car purchases? Would it be the availability of credit? The number of people employed? Fear, or the lack of it, on the part of consumers?
Explain what happens to observed prices in posted offer and double auction markets as the number of sellers drop to 2. Explain what happens in these two markets as the number of sellers drops to only one seller. Explain why part (b) illustrates the f..
The Future Flight Corporation manufactures a variety of frisbees selling for $2.98 each. Sales have averaged 10,000 units per month during the last year. Recently Future Flight's closest competitor, Soaring Free Company, cut its prices on similar fri..
q. recall that is the economy continues to be strong abc company may need to increase its production by about 50
Top Inc. is interested in developing a new toy. The toys will sell for $25 each and they plan to sell 10 million toys at the end of each year for 4 years. Variable costs are $20 per toy; fixed costs are $10,000,000 per year. If the cost of capital is..
Explain how the raising of short-term interest rates would affect all of the following in the United States: the inflation rate, the unemployment rate, the value of the U.S. dollar, net exports, and U.S. stock markets. Include at least one well-label..
Calculate the present value of an annuity with annual deposits of $10,000 at 7% for 10 years. Determine the monthly payment to amortize a $250,000 debt at 3% for 30 years.
Describe the long-term trends in inequality in the United States using the available measures. What are possible explanations for these long-term trends.
Assume that inflation is currently 4% but the Fed’s inflation target is 2%.
Government data that computes averages, such as the consumer price index, are applicable to everyone.
Suppose that expectation of reducing housing values cause households to decrease their demand for new houses and the financing that accompanies it.
International trade has pros and cons. Economists generally support free trade. International trade has played a significant part in promoting economic development and technology transfer among countries.
Suppose that on January 1, 2020, the population of a country is 100 million. During 2020, there are 1 million births and 500,000 deaths. In addition, 2 million people immigrate to the country while 500,000 emigrate. What is the population on January ..
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