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If America has real GDP per capita of $40,000, and if a Mexico has real GDP per capita of $20,000. Next if that the growth of real GDP per capita falls to zero percent in America and rises to 2 percent in Mexico. If these rates continue for long periods of time, how many years will it take for Mexico to catch up to the living standard of America?
Provide an example of each of the four different ways industry is organized (the different degrees of market power) and explain why you believe them to be good examples.
In February of 1999, James Surowiecki, who wrote the “Moneybox” column for Slate magazine, said: Briefly explain why this conclusion is not surprising.
Juanita is a college student who lives in Miami and provides math tutoring for extra cash. At a wage of $40 per hour, she is willing to tutor 7 hours per week. At $50 per hour, she is willing to tutor 10 hours per week. Using the midpoint method, the..
Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. Calculate your aunt's expe..
There have been tariffs on imported steel to 'protect' U.S. steelworkers. Who do the tariffs harm and who do the tariffs help?
Given the market for wheat in equilibrium, assume that the government imposes a price floor on wheat. Explain what happens to the market for wheat as a result of this action? Draw and graph to fully illustrate the situation.
Over the past decade, medical costs have increased more rapidly than other prices. In order to illustrate how rising medical costs have affected consumer alternatives, let X represent the quantity of medical services, and let Y represent the quantity..
Why do you think Starbucks increased its prices by 1%, and do you believe that this action is risky, or a safe bet?
When a company is profitable, there is always the threat of new competitors. The market structure may deter new entrants. For example, if there is a significant investment required to enter the market, competition may be minimal. However, if the inve..
A college has a small discipline problem. Students frequently discharge the water-filled fire extinguishers for fun. Obviously, it is a safety hazard when fire extinguishers are empty. The college's punishment is a $400 fine. Can you explain what mig..
Question: Explain what is the of distribution of income and Marginal productivity theory?
The simple circular flow model (without leaks or injections) shows that an economy reaches equilibrium when:
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