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Some of the instruments that can be used by government to intervene in the market are ________
a. government spending, public financing and population growth.
b. transfer payments, taxation and regulation.
c. public financing, political shocks and redistribution of income.
d. redistribution of income, transfer payments and taxation.
For an accurate diagram that illustrates the influence of the price elasticity of demand upon the incidence of the tax.
• For an accurate diagram that illustrates the influence of the price elasticity of supply upon the incidence of the tax.
A college freshman borrowed P2,000 from a bank for his tuition fee and promised to pay the amount for one year. He received only the amount of P1,920 after the bank collected the advance interest of P80.00. What was the rate of discount?
Suppose that with a budget of $200, Deborah spends $120 on sushi and $80 on bagels when sushi costs $2 per piece and bagels cost $2 per bagel. Then, the price of bagels falls to $1 per bagel.
Discuss each of the following statements from the standpoints of equality and efficiency. a. Everyone in society should be guaranteed the best healthcare possible. b. When workers are laid off, they should be able to collect unemployment benefits until they find a new job.
1. Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure involved. a. regulating cable TV prices b. providing some poor people with vouchers that can be used to buy food c. prohibiting smoking in public places d. breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companies e. imposing higher personal income tax rates on people with higher incomes f. instituting laws against driving while intoxicated
- The Global Insight (GI) forecasting firm predicted that the Canadian economy would bounce back by a stronger-than-expected 1.0 percent on an annualized basis in the third quarter of 2012 and with a further 0.1 percent in the fourth quarter of 2012. The firm also expected moderate growth overall in 2013.
(10 marks)
a. What evidence did GI present to support the view that Canada had entered a recovery?
(2 marks)
b. Use a short-run Phillips curve to explain why the inflation rate may have increased over the course of 2012.
(4 marks)
c. Under what circumstances might the inflation rate not have increased during 2012?
(4
Explain the difference between Real and Nominal GDP.
Defi ne carefully what is meant by a demand sched-ule or curve. State the law of downward-sloping demand. Illustrate the law of downward-sloping demand with two cases from your own experience.
Using supply and demand diagrams, show the effect of the following events on the market for sweatshirts.
a. A drought in Egypt damages the cotton crop.
b. The price of leather jackets falls.
c. All universities require students to attend morning exercise classes in appropriate attire.
d. New knitting machines are invented
