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A smart card, also known as an electronic purse, is a plastic card that can be loaded with a monetary value. Its developers argue that, once widely accepted, it could replace the use of currency in vending machines, parking meters, and elsewhere. Suppose smart cards came into widespread use. Present your views on the following issues:
a.Would you count balances in the purses as part of the money supply? If so, would they be part of M1? M2?
b.Should any institution be permitted to issue them, or should they be restricted to banks?
c.Should the issuers be subject to reserve requirements?
d.Suppose they were issued by banks. How do you think the use of such purses would affect the money supply?
If the marginal cost curve lies above the average cost curve, then the average cost curve must be sloping upward and the short-run cost function is always greater than the long-run cost function
In attempt to increase revenue and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising.
What information did you have or obtain that helped make your decision a well-informed one.there something you didn't know beforehand.
Consider the relationship given by QCars = 100 + 4xPCars - 2xPSteel - 0.2xPWorkers, where QCars is the quantity of cars (in thousands), PCars is the price of cars and PWorkers is the wage earned by autoworkers.
Suppose market demand and supply are given by Qd = 300 - 4P and QS = -50 + 3P. The equilibrium price is: a $35. b $40. c $50. d $60.
TC=0.2Q^2-5Q+30(Q^2 means Q square) a) What is its corresponding marginal cost curve b) If the firm faces a price of $6 per unit, what quantity should it sell c) What profit does the firm make at this price d) Should the firm shut down
The owner of a flower shop needs a short-term loan to tide her business over until she completes the sale of some unused property.
A monopoly with a more elastic demand curve will have more market power and monopolist can earn positive profits in the long run because it has market power
The future possibility of doctors examining X-rays and performing other responsibilities from remote locations through the Internet. How will this change affect international business?
Anti-trust authorities at the federal trade commission are reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power. A hearing is scheduled for ..
Given that Y=900 and want consumption and investment are given through, Fill the entries as you require to answer the questions.
Deep global recession might trigger changes in expending from imported items to domestically manufactured items. What are at least two policies that governments might implement to increase expending on domestic items.
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