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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how to best produce them. Daniel Defoe’s [1659 (?60)-1731] Robinson Crusoe [1719] was a tale of a solitary individual‚ endowed with scarce resources‚ and the challenges he faced. When Friday enters the story‚ their lives and the allocation problem are altered. When individuals live in social groups it becomes necessary to distribute the goods among the individuals as well as choosing which goods and services to produce. In the jargon of the economist‚ it is necessary • • • to
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News Article Analysis Topic: Demand and Supply Headline: Used- car shortage looms as curbs bite Source: The Strait Times Date: 25th May 2013 Summary Supply of used-cars has decreased from 7000 to 2400 because MAS (Monetary Authority of Singapore) lifted loan curbs on these vehicles for 60 days. Moreover‚ suppliers are unable to increase supply of used cars since owners are not selling due to future loan restrictions. Under the old scheme‚ car buyers can borrow up to 100 percent of the purchase
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Questions 2. Assume a monopolist faces a market demand curve P = 100 – 2Q‚ and has the short-run total cost function C = 640 + 20Q. What is the profit-maximizing level of output? What are profits? Graph the marginal revenue‚ marginal cost‚ and demand curves‚ 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
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ECO 5305 Final Exam Answers underlined in yellow 1. Fixed costs include: a. variable labor expenses. b. output-related energy costs. c. output-related raw material costs. d. variable interest costs for borrowed capital. 2. Marginal cost equals: a. average variable cost at its maximum point. b. the change in total fixed cost divided by the change in quantity. c. the change in total variable cost divided by the change in quantity. d. total cost divided by quantity
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stabilize the economy; to protect businesses‚ consumers‚ investors‚ and competition; to conserve the environment; to regulate working conditions; and to protect business property. Both state and federal laws govern mergers and acquisitions. State laws set the procedures for the approval of mergers and establish judicial oversight for the terms of mergers to ensure shareholders of the targeted company receive
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Note Book Chapter 1 Getting Started 1.1 DEFINITION AND QUESTIONS 1. Scarcity is the condition that arises because wants exceeds the ability of resources to satisfy them. 2. Scarcity is the condition that arises because wants exceed the ability of resources to satisfy them. Scarcity is not eliminated when people become rich‚ movie goers are able to see the next The Social Networ installment‚ or people gain employment because of the movie’s release. In all cases‚ people will have wants that
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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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of the rods will have length of more than 122.5 mm? If 10% of rods were to be rejected for being too short‚ what is the minimum length of the rods that will accept? What is the assumption you have made in your calculation? (20 marks) END (c) Set 1 Page 1
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that the price of good A is $4‚ the price of good B is $2 and the consumer’s income is $60. Which of the following baskets is not on the consumer’s budget line? Response: A = 20‚ B = 5 * Edit Question 9 The budget line Response: represents the set of all
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