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State whether each of the following statements are True or False. If the statement is false, please state why it is false.
a) An increase in Real GDP means that the Production Possibility Curve must move outward.
b) There is no cost to the macroeconomy of current consumption.
c) Increased Capacity Utilization means that the PPF is moving outward.
d) Gross Investment being greater than the amount of capital depreciated will help lead to Economic Growth, ceteris paribus.
e) Spending money on increases in human capital shifts the PPF outward, ceteris paribus.
List four different sources of externalities associated with education service that make it likely that an inefficiently small amount of the service would be provided in competitive equilibrium without gov intervention. Explain why each source you li..
The issue of competition over time presents a number of problems for a firm. Based on your reading, additional research for this question, and personal experience, what do you believe is the most effective way a firm can compete over time?
You are the manager of a business in a monopoly market with the following inverse demand function. In addition, assume your production technology is described by the total cost function.
Compare an owner's personal liability for debts of a business organized as a sole proprietorship, general partnership, limited partnership, LLP, LLC, and S corporation.
An increase in expected future income will
Suppose that you deposit $15,000 into your checking account deposit at Bank Y. Assume that the required reserve ratio is 25 percent. what is the maximum increase in checking account deposits that can result from your $15,000 deposit? What is the maxi..
Mary's indifference map and budget constraint for goods x and y are shown below. If Mary spends all her money on x and y which bundle will she choose to maximize her utility?
The Law of Supply suggests that the price-elasticity of supply is: If a 10 percent increase in the price of one good results in no change in the quantity demanded of another good, then it can be concluded that the two goods are: Marginal utility is t..
The banks hold no excess reserves, Illustrate what will happen to the total money supply. How did you reach your answer.
Suppose that a perfectly competitive firms’ Total Cost function is given by: SRTC(q) = 50 + 80q –10q2 + .6q3. What is fixed cost equal to? What is Variable Cost equal to? What is Marginal Cost equal to? What is Average Variable Cost equal to? Find an..
Johnny Rotten consumes two commodities, namely garbage and vinyl records. He keeps the garbage in the backyard where it is eaten by goats and vermin. The reason he accepts the garbage is that people pay him $2 per sack for taking it.
You are responsible for detecting the source of errors when the computer system fails. From your analysis you know that the source of error is the disk drive, computer memory, or the operating system. You know that 50% of the errors are disk drive er..
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