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Many thinkers believe that we are rapidly depleting our natural resources. Assume that these are only two inputs (labour and natural resources) producing two goods (wheat and gasoline) with no improvement in technology over time. Show what would happen to the production possibility curve over time as natural resources are exhausted. How would invention and technological improvement modify your answer? On the basis of this example, explain why it is said "economic growth is a race between depletion and invention".
The British Columbia government recently increased the minimum wage from $14.60 per hour to $15.20 per hour. The new minimum wage was implemented as of June 1, 2021. Drawing from what you have learnt on the topic “labour demand” and from related literature, what do you think might be the implications on employment and wages in the Province?
Word limit: 140
which statistic measures the number of new building permits issued in a city or metropolitan
Choose two products and explain why you think their demand is price elastic or price
inelastic. Be sure to consider the two factors that determine price elasticity in preparing
your answer.
Discuss the ways in which the concept of the elasticity of demand might be of value to the managing director of an international supermarket chain.
Explain Income Elasticity and Cross Elasticity.
R.J. Smith Corporation is a publisher of novels. The Corporation hires an economist to determine the demand for its product. After months of hard work, the analyst tells the company that the demand for the firm's novels (Qx) is given by the following equation:
Qx = 12,000 - 5,000Px + 5I + 500Pc
Where Px is the price charged for the R.J. Smith novels, I is income per capita and Pc is the price of books from competing publishers. Using this information the board of directors want you to
(a) Determine what effect a price increase would have on total revenues.
(b) Evaluate how sales of the novels would change during a period of rising incomes.
(c) Assess the probable impact if competing publishers raise their prices.
Assume initial values of Px, Pc and I are $5, $10,000 and $6 respectively.
- There have been demographic changes- the population of teenagers increased
Assume that the banking system is loaned up and that any open-market purchase by the Fed directly increases reserves in the banks. If the required reserve ratio is 0.2, by how much could the money supply expand if the Fed purchased $2 billion worth of bonds?
Please explain in three well-structured paragraphs the basic arguments stated by the Real-Business-Cycle (RBC) Theory, regarding economic fluctuations.
G&G Consulting has just realized an accounting error that has resulted in an unfunded liability of $455,950 due in 35 years. In other words, the company will need $455,950 in 35 years. Dave Green, the company’s CEO, is scrambling to discount the liability to the present to assist in valuing the firm’s stock. If the appropriate discount rate is 9 percent, what is the present value of the liability?
