Learn more about our help with Assignments: Economics
Search & Filtering
Which of the following would shift the demand curve for new textbooks to the right?
1) fall in price of paper used in publishing texts
2) fall in the price of equivalently used textbooks
3) increase in the income of students attending college
4) fall in the price of textbooks
5) increase in the number of publishers of textbooks
1) fall in price of paper used in publishing texts
2) fall in the price of equivalently used textbooks
3) increase in the income of students attending college
4) fall in the price of textbooks
5) increase in the number of publishers of textbooks
Plastic and steel are substitutes in the production of body panels for certain automobiles. If the price of plastic increases, with other things remaining the same, we would expect:
1) the price of steel to fall
2) the demand curve for steel to shift to the right
3) the demand curve for plastic to shift to the left
4) nothing to happen to steel because it is only a substitute for plastic
5) the demand curve for steel to shift to the left
1) the price of steel to fall
2) the demand curve for steel to shift to the right
3) the demand curve for plastic to shift to the left
4) nothing to happen to steel because it is only a substitute for plastic
5) the demand curve for steel to shift to the left
At a business and professional level, what kind of questions can macroeconomics help you answer?
Consider the following short-run model of equilibrium in the foreign exchange market, money market, and goods market:
(1) R=R∗+Ee−EE,
(2) MsP=L(R,Y),
(3) Y=C(Y−T)+I+G+CA(q,Y−T).
All variables have the interpretation given in class (in particular, q=EP∗P is the country's real exchange rate).
Suppose that the government increases temporarily its spending by ΔG.
a) Explain how the endogenous variables of this model adjust to the new short-run equilibrium.
b) (3′) Y =C(Y −T)+I(R)+G+CA(q,Y −T),
instead of equation (3). Investment is now a decreasing function of the interest rate: when the interest rate increases (decreases), investment decreases (in- creases), all else equal. How does this change affect your answer to question .a)?
(1) R=R∗+Ee−EE,
(2) MsP=L(R,Y),
(3) Y=C(Y−T)+I+G+CA(q,Y−T).
All variables have the interpretation given in class (in particular, q=EP∗P is the country's real exchange rate).
Suppose that the government increases temporarily its spending by ΔG.
a) Explain how the endogenous variables of this model adjust to the new short-run equilibrium.
b) (3′) Y =C(Y −T)+I(R)+G+CA(q,Y −T),
instead of equation (3). Investment is now a decreasing function of the interest rate: when the interest rate increases (decreases), investment decreases (in- creases), all else equal. How does this change affect your answer to question .a)?
Consider the following short-run model of equilibrium in the foreign exchange market, money market, and goods market:
(1) R=R∗+Ee−EE,
(2) MsP=L(R,Y),
(3) Y=C(Y−T)+I+G+CA(q,Y−T).
All variables have the interpretation given in class (in particular, q=EP∗P is the country's real exchange rate).
Suppose that the government increases temporarily its spending by ΔG.
a) Explain how the endogenous variables of this model adjust to the new short-run equilibrium.
b) Suppose now that the government combines the temporary increase in government spending with a temporary increase in the money supply (both occurring at the same time). What can you say about the short-run response of output in this case compared to that in .a)?
c) Explain the intuition behind the difference in the response of output in questions .a) and .b).
(1) R=R∗+Ee−EE,
(2) MsP=L(R,Y),
(3) Y=C(Y−T)+I+G+CA(q,Y−T).
All variables have the interpretation given in class (in particular, q=EP∗P is the country's real exchange rate).
Suppose that the government increases temporarily its spending by ΔG.
a) Explain how the endogenous variables of this model adjust to the new short-run equilibrium.
b) Suppose now that the government combines the temporary increase in government spending with a temporary increase in the money supply (both occurring at the same time). What can you say about the short-run response of output in this case compared to that in .a)?
c) Explain the intuition behind the difference in the response of output in questions .a) and .b).
Consider the following short-run model of equilibrium in the foreign exchange market, money market, and goods market:
(1) R=R∗+Ee−EE,
(2) MsP=L(R,Y),
(3) Y=C(Y−T)+I+G+CA(q,Y−T).
All variables have the interpretation given in class (in particular, q=EP∗P is the country's real exchange rate).
Suppose that the government increases temporarily its spending by ΔG.
a) Explain how the endogenous variables of this model adjust to the new short-run equilibrium.
b) Suppose now that the government combines the temporary increase in government spending with a temporary increase in the money supply (both occurring at the same time). What can you say about the short-run response of output in this case compared to that in .a)?
(1) R=R∗+Ee−EE,
(2) MsP=L(R,Y),
(3) Y=C(Y−T)+I+G+CA(q,Y−T).
All variables have the interpretation given in class (in particular, q=EP∗P is the country's real exchange rate).
Suppose that the government increases temporarily its spending by ΔG.
a) Explain how the endogenous variables of this model adjust to the new short-run equilibrium.
b) Suppose now that the government combines the temporary increase in government spending with a temporary increase in the money supply (both occurring at the same time). What can you say about the short-run response of output in this case compared to that in .a)?
Which of following best describes the concept of potential output?
1.the total output that can be produced when all factors of production(land,labour and capital) are fully employed.
2.the total output that can be produced when the economy is in short run economic equilibrium
3.the total output that can be produced in future when technological advances allow a higher level of output.
4.the total output that can be produced if no productive resource (land,labour, and capital) was ever left idle.
1.the total output that can be produced when all factors of production(land,labour and capital) are fully employed.
2.the total output that can be produced when the economy is in short run economic equilibrium
3.the total output that can be produced in future when technological advances allow a higher level of output.
4.the total output that can be produced if no productive resource (land,labour, and capital) was ever left idle.
At the profit-maximizing output level, an increase in price by a perfectly competitive firm will:
a) increase total cost more than total revenue ,
B ) cause an increase in profits ,
C)cause the firm to loose all of its sales ,
D)increase total revenue more than total cost ,
E)Reduce total cost more than total revenue
a) increase total cost more than total revenue ,
B ) cause an increase in profits ,
C)cause the firm to loose all of its sales ,
D)increase total revenue more than total cost ,
E)Reduce total cost more than total revenue
which of the following statements about the monopolistiocally competitive market in the long run is true ??
1) the marginal revenue curve coincides with the demand curve facing the firm
2) the firms operate on the upward sloping portion of the long run average cost curve
3)the firms make above normal profit in the long run
4) the resources are effeciently utilized
5) the firms produce the outputlevel that is less than the output corresponding to the minimum of average total cost
1) the marginal revenue curve coincides with the demand curve facing the firm
2) the firms operate on the upward sloping portion of the long run average cost curve
3)the firms make above normal profit in the long run
4) the resources are effeciently utilized
5) the firms produce the outputlevel that is less than the output corresponding to the minimum of average total cost
The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a perfectly competitive firm producing different quantities of chocolate gift boxes. The market price of a gift box is $5 per box.
Instructions: Enter your answers as whole numbers. For profit per gift box, round your answers to 2 decimal places.
a. Fill in the marginal revenue (MR) and average revenue (AR) columns.
b. Given a price of $5 per gift box, how many gift boxes should Choco Lovers produce?
25
gift boxes
What will be the profit per gift box?
$
c. Suppose that Choco Lovers raises the price of gift boxes to $7 per gift box. How many gift boxes should Choco Lovers produce now?
gift boxes
What will be the new profit per gift box?
Instructions: Enter your answers as whole numbers. For profit per gift box, round your answers to 2 decimal places.
a. Fill in the marginal revenue (MR) and average revenue (AR) columns.
b. Given a price of $5 per gift box, how many gift boxes should Choco Lovers produce?
25
gift boxes
What will be the profit per gift box?
$
c. Suppose that Choco Lovers raises the price of gift boxes to $7 per gift box. How many gift boxes should Choco Lovers produce now?
gift boxes
What will be the new profit per gift box?
