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A paint firm has just announced that it will be building a new plant in a small town that is currently experiencing a high level of unemployment. The new plant will create 500 new jobs in the area and will occupy unused land at the edge of town. The plant will also dump some harmful chemicals into the town's river. From an economic standpoint this dumping of chemicals
a. creates a positive externality. b. is unimportant since the firm is reducing the unemployment in the region. c. is the production of a public good. d. creates a negative externality.
Provide some examples of discrete and continuous variables. What attributes of these variables make them discrete and continuous? Why?
What is happening to the value of the U.S. dollar these days? What causes the value of the U.S. dollar to rise or fall? Who demands U.S. dollar? Who supplies U.S. dollar? How can the falling U.S. dollar impact your travel expenses? Why would a cheap ..
Suppose that the world price of oil is roughly $80 per barrel and that the world demand and total world supply of oil equal 34 billion barrels per year (bb/yr), with a competitive supply of 20 bb/yr and 14bb/yr from OPEC. Using this information, deri..
Assume that initial GDP is $1,000 and we want to expand it to $1,600. Average MPC for the country is 2/3. What should be the new level of government spending if the initial level is $100. Also how much of a tax policy change reach to the same results..
Use the total cost (TC) schedule that is presented in the table below to determine the optimal rate of production when the firm can sell all of the output it produces at a price of $6.50 per unit. Also determine the level of profit (or loss) that the..
During a business cycle, typically output can be below the level consistent with the secular growth trend: A. only at the peak (top) of the cycle. B. only at the trough (bottom) of the cycle. C. whether the economy is expanding or contracting. D. at ..
The Japanese government reduced interest rates. How did they created negative interest rates? Why and for what purpose? What did the Japanese government to do fiscal and monetary policy to increase Japanese business activity? Is the policy working, o..
You are considering purchasing a savings bond that will pay $100 in five years. The market interest rate currently is 3% per year. What should you be willing to pay to purchase this bond today? Suppose the interest rate goes up next year, to 4% per y..
Is the Fed currently pursuing an expansionary, neutral, or contractionary monetary policy? What if any difficulties do you think may be encountered in implementing the current policy.
Following the birth of their third child, Mary and John realized that Mary had to go back to work to help make ends meet financially. This meant, however, that they would spend less time together as a family. Sociologists would say that Mary going ba..
Explain how “Black Markets” impact economic actives: Please explain in detail and use a supply and demand graph for your examples
The foregone value associated with the correct rather than the next best use of a given asset is called" a.) Opportunity cost b.) replacement cost c.) historical cost d.) currect cost What is the correct answer
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