Economics Answers

Consider the effects of an exogenous increase in the domestic price level. For each of the assets listed, explain how the change in the price level would affect the wealth of the asset holder. Then explain the effect on aggregate (private sector) wealth and how the AE would shift in each case.

a) Cash holdings
b) A household mortgage

how do traditional societies deal with the production problem ?

Theoretically, lower fuel/gasoline costs help the economy by lowering prices on transported goods allowing consumers to purchase more goods, etc. Also, theoretically, fuel prices dropping TOO low hurt the economy as lower prices are caused by too high of a supply and layoffs occur as drilling/extraction is cut back.

However, is there a point where the layoffs hit a maximum and the economy continues to benefit if fuel continues to drop in price? If oil/natural gas companies stop drilling at say $35.00/barrel or $2.20 Natural Gas spot price (hypothetical benchmarks) and the price continues to fall, wont all the benefits of lower fuel costs continue to help the economy while layoffs remain fixed at a peak? You can't layoff an oilfield worker if he's alrrady laid off, right?

What is a health economic related issue? I originally suggested that "job insecurity deteriorates health", but was told that this was an economic issue with health and NOT a health economic issue. So what would a health economic issue be?

When there is excess supply...
A) prices will tend to rise
B) prises will tend to fall
C)demand will rise
D)the government will impose price ceilings ?

In light of the Ricardian model, how might you evaluate the claim by developing countries that they are at a disadvantage in trade with powerful industrialized nations?

Which ONE of the following is the limiting factor to total production in an economy:

a. The amount of money in circulation

b. The amount of Government spending and taxiation

c. The quantity and quality of its productive resources

The table below gives the index prices of four items A, B, C, and D sold at a store in 2000 and 2014.

Item: 2000 Price: 2014 Price: 2000 Quantity: 2014 Quantity:
A 40 45 1000 800
B 55 74 1900 5000
C 95 105 600 3000
D 250 320 50 200

What is the Laspeyres index for these items?

What is the Paasche index for these items?

According to Laspeyres index, prices in 2014 increased on average by how much over 2000?

According to Paasche index, prices in 2014 increased on average by how much over 2000?

what is the beliefs or characteristics that a person or group consider important