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1. What are the benefits of specialization of production?
2. What is an import? Export?
3. What does it mean if a country has an absolute advantage in production of a good over another?
4. What does it mean if a country has a comparative advantage in production of a good over another country?
5. What are some of the arguments in favor of international trade?
Suppose that doctors’ visits cost $20, and the typical consumer has an income of $100. Consumers spend all of their incomes on doctors’ visits and a “composite good” that costs $1 per unit. Draw a graph that illustrates the consumer’s budget constrai..
Does disposable income measure the before-tax income received by resource suppliers
Fischer Skis has been producing high quality skis for a long time with no change to any market conditions. Answer the following question(s) about Fischer Skis in relation to the ski industry assuming that the ski industry is a competitive constant co..
Assume that the reserve requirement is 20 percent. Also assume that banks do not hold excess reserves and there is no cash held by the public. The Federal Reserve decides that it wants to expand the money supply by $ 40 million dollars. If the Fed is..
Bayer Schering Pharma AG, Germany owns the Alka-Seltzer, which was launched in 1931 and was meant for relief of minor aches, pains, inflammation, fever, headache, heartburn, sour stomach, indigestion, and hangovers. The Alka-Seltzer Plus was a spin-o..
In your textbook it discusses the tragedy of the commons. What does this mean and do you agree with the authors that there is a tragedy of the commons? Defend your answer.
Democratic Republic of the Congo grows at a healthy 3% per capita, how long will it take Democratic Republic of the Congo to catch up with Luxembourg.
A process plant making 4000 tons per year of a product selling for $0.80 per kg has annual direct production costs of $2 million at 100 percent capacity and other fixed costs of $700,000. Construct the break-even chart for the process. Determine the ..
Fisher's utility function for trout (T) and salmon (S) is given by U = ST, where the MUT = S and MUs = T. Which set of consumption bundles lies on the same indifference curve?
What is the significance of "core deposits" to bankers?
A manufacturer's product is sold to customers at $5.40 each. Manufacturing costs are as follows: Fixed costs per period $270,000
Explain how the government can stimulate the aggregate supply. What are the implications of using this stimulus to help stabilize an economy?
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