economics central to an understanding of the problems of development? It is because that the development of a country depends on economic factors. Economics helps you to interpret how a country is developing‚ economic policies of a country that determine whether or not it develops and how fast it develops if it performs. In addition‚ economics helps you to understand how wealth and finance are distributed‚ and the causes and effects of borrowing and lending. Problems of development are like not having enough
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1. Use only 1 or 2 sentences only to answer in terms of economic concepts. [10 points] a. What are automatic stabilizers? Automatic stabilizers are part of the fiscal policy and are built into the federal/state/local tax and transfer systems. They are put in place to stimulate aggregate demand in a recession without the need for action by policymakers. Corporate and personal income taxes are the best-known automatic stabilizers. For example: when the economy is in its growth stage‚ our progressive
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the decision making mechanism‚ social customs and political realities of society. The three central coordination problems any economy must solve are: 1. What and How much to produce 2. How to produce it 3. For whom to produce it Economist find that individuals want more than is available‚ given how much their willing to work. That means that in our economy there is a problem of scarcity. Scarcity: The goods available are too few to satisfy individual’s desires. Scarcity has two elements;
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Travis Kellenberger AGEC 700 Problem Set #3 2) The demand curve for a product is given by Qdx = 1‚200-3Px- .01Pz‚ where Pz = $300. a) What is the own price elasticity of demand when Px = $140? Is demand elastic or inelastic at this price? What would happen to the firm’s revenue if it decided to charge a price below $140? At the given prices‚ quantity demanded is 750 units: Qdx = 1‚200- (3 *140) -.1 (300) = 750. -140/750=-.56; demand is inelastic at this price point and you would be decreasing
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Accounts Gross National Product is the value of all final goods and services produced by its factors of production and sold on the mkt in a given time period. It can be divided into: 1. consumption 2. investment 3. govn’t purchase 4. current account balance Capital Depreciation and National Transfers GNP has to be equal to national income. In order for this to hold we need to make some adjustments. 1. GNP doesn’t take into account the economic loss due to the tendency
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Economics and Macroeconomics Discussion Questions 1 Explain why both nations with high living standards and nations with low living standards face the problem of scarcity. If you won $1 million in a lottery‚ would you escape the scarcity problem? You would not escape the scarcity problem even if you won $1 million in a lottery because the problem of scarcity will always be present. There will always be unlimited wants that cannot be satisfied due to limited resources. 2 Why is money not considered
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treasury)‚ & Robert Morris supported dollar as American Monetary Unit This established the decimal system we use today with money – which is much easier than the British system‚ which was eventually decimalized in 1971. Coinage Act of 1792 - Set our monetary system based upon gold & silver – “Bimetallic System” for almost 75 years Designated both gold and silver as the monetary standard for the U.S. = Bimetallic Standard and lasted for almost 75 years Silver coins contained more metal than
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No‚ because society does not assign a value to free goods. | 4. (TCO 1) Which is not considered to be an economic resource? (Points : 1) | Land (or natural resources) Money Labor Tools and machinery | 5. (TCO 1) A movement along the production possibilities curve would imply that (Points : 1) | the labor force has grown. productivity has increased. productivity has declined. society has chosen a different set of outputs. | 6. (TCO 1) Which would not be characteristic of
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and show the area that represents deadweight loss on the graph. 3. In question 2‚ what would price and output be if the firm priced at socially efficient (competitive) levels? What is the magnitude of the deadweight loss caused by monopoly pricing? 4. Show that if a firm is a natural monopoly‚ a government policy that forces marginal cost pricing will result in losses for the firm. 5. Suppose a change in technology available to fringe firms increases their elasticity of supply‚ altering the total
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satisfied. 3. Economics is the social science that studies the choices that individuals‚ businesses‚ governments‚ and entire societies make as they cope with scarcity‚ the incentives that influence those choices‚ and the arrangements that coordinate them. 4. Microeconomics: The study of the choices that individuals and businesses make and the way these choices interact and are influenced by governments. 5. Macroeconomics: The study of the aggregate (or total) effects on the national economy and the global
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