Microeconomics Vocabulary |Word |Definition | |Market |A market is any situation or place that enables the buying and selling of goods and| | |services | |Perfect Competition |Perfect competition is a market structure
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Japan posts China trade deficit Japan has a lower export revenue than import spending to the EU and China which led to the fall of their GDP by 0.9% - GDP=C+G+I+(X-M) a fall in X will lead to a fall in GDP‚ ceteris paribus - and as exports to their top export destination‚ China‚ decreases by a total of 12% ‚ Japan‚ one of the world’s top economies‚ will have another consecutive quarter of falling GDP‚ leading them into a recession. We can see a deflationary gap forming and a decrease in real
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Chapter 12 Commercial Banks’ Financial Statements and Analysis True/False Questions 1.A wholesale bank is one that focuses its business activities on commercial bankingrelationships.Answer: True Page: 351 Level: Easy 2.In 2004 Bank of America‚ headquartered in Charleston‚ West Virginia‚ was thenation ’s sixth largest bank.Answer: False Page: 351-352 Level: Medium 3.Banks have higher leverage than most manufacturing firms.Answer: True Page: 352‚355 Level: Easy 4.Loans to consumers and to individuals
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Economics 202 Fall 2013 Exam 1 1. A resource is something that a. is used to produce goods and services b. is provided by nature‚ not made by society c. exists in unlimited quantities d. must be produced by a firm 2. Michigan has an abundant supply of fresh water. However‚ an economist would consider it a scarce resource because a. water is necessary for humans ’ physical survival b. pollution will eventually destroy all life in the Great Lakes c. water is limited relative to people ’s
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aggregate demand curve is Y = 7‚250 + 5‚000/P. Price Level :2.0 ‚1.25 ‚1.0 ‚0.8 ‚0.5 Aggregate Demand :9‚750 ‚11‚250‚12‚250 ‚13‚500 ‚17‚250 Chapter 9. Problems 4 6. (7 points) Explain briefly how a change to the following MS‚ MD‚ or P (ceteris paribus) would shift the LM function to the right. Include in your discussion whether the variable would have to increase or decrease to cause the rightward LM shift. Discuss which of these the FED exercises control over. a. MS. b. MD (money demand)
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------------------------------------------------- Review Assessment: Chapter 1 Quiz (Due January 29‚ 2012) Status | Completed | Score | 75 out of 100 points | Instructions | | | Question 1 | 0 out of 2 points | | The following multiple-choice question requires critical thinking about In the News and World View articles that appeared in the text. One World View article is titled "Food Shortages Plague N. Korea." On a production-possibilities curve between private and public
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Given that the price is raised it will become more favourable for producers to increase their supply‚ referring to the Law of Supply which states that “as the price of a product rises‚ the quantity supplied of the product will usually increase‚ ceteris paribus (all other things being equal)”. If the producers are able
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at the start of the New Year. This is going to increase the quantity demanded of these commodities‚ according to the Law of Demand. . The Law of Demand states that an increase in price level‚ will lead to a decrease in the quantity demanded‚ ceteris paribus. At the same time‚ a decrease in world oil prices has reduced costs of production and transportation for many trading countries‚ giving them an incentive to increase their supply. Article Analysis The article initially mentions that the expected
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Question 1: During the 1990s‚ technological advance reduced the cost of computer chips. Explain‚ with the use supply and demand diagrams‚ how the following markets are affected in terms of prices and quantities. a) Computers b) Computer software c) Typewriters a) DEMAND- Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity
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Economy as a whole 2. What is the difference between deductive and inductive methods in economics when discussing theories? Deductive: Beginning with theory‚ testing with facts Inductive: Deriving of theory starting with facts 3. What is the ceteris paribus assumption? Why is it used in economics? All other factors remain the same‚ e.g. the demand curve for a can of Coke is not affected by the weather. Used because if we don’t use it there are too many variables‚ making whatever we are trying to
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