1. What do economists mean when they state that a good is scarce? a. There is a shortage or insufficient supply of the good at the existing price. b. It is impossible to expand the availability of the good beyond the current amount. c. People will want to buy more of the good regardless of the price of the good. d. The amount of the good that people would like exceeds the supply freely available from nature. 2. Which of the following is most clearly consistent with the basic guidepost
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1. The following table shows the average retail price of salted grade AA butter per pound and the Consumer Price Index from 1980 to 2000‚ scaled so that the CPI = 100 in 1980. | 1980 | 1985 | 1990 | 1995 | 2000 | Consumer Price Index | 100.00 | 130.58 | 158.56 | 184.95 | 208.98 | Retail Price of Butter | $1.88 | $2.12 | $1.99 | $1.61 | $2.52 | a. Calculate the real price of butter in 1980 dollars. Recall: Real Price of butter in Year t=CPI1980CPIt×Nominal Price in Year t For Example:
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6. To fully explain the multiplier effect‚ we need first to define the Injections and Withdrawals‚ preferably through the model of Circular flow of income: It is a simple economic model describing a circulation of income between producers (firms) and consumers (households.). It consists of direct inner flow between firms and households and outer flow. The outer flow is caused by the fact that households do not spend all of their income on consumption; part of their income is withdrawn as net
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Explain why government regulation is needed‚ citing the major reasons for government involvement in a market economy. In the beginning there was no intention for the government to have a hand in business. The government wanted businesses to act on their own best interests without any involvement from the government. Regulation was brought about to enhance the public and take care of those that have lost or investigate those who have cheated. For many years there was no government regulation and
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1. The Bureau of Labor Statistics announced that in April 2010‚ of all adult Americans‚ 139‚455‚000 were employed‚ 15‚260‚000 were unemployed‚ and 82‚614‚000 were not in the labor force. Use this information to calculate: a. the adult population = employed+unemployed+not in the labor force=237329000 b. the labor force = employed+unemployed=154715000 c. the labor-force participation rate = (labor force/adult population) x 100= 65.2% d. the unemployment rate = (unemployed/labor force) x 100=
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2011 H1 Economics Prelim Questions Raffles Institution With the help of a diagram‚ analyze the effects of China’s increasing control over rare earths mines on the Japanese economy. To what extent would China’s reduction in the export of rare earths pose a challenge to the West’s march toward a greener future? Evaluate the effectiveness of the Chinese’s government’s intervention in the market for rare earths To what extent do you agree with the view that the US trade position with China over
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Based on the information provided for the market for video games‚ answer the following questions. PRICE Q DEMANDED Q SUPPLIED $50 5 9 $45 7 7 $40 9 5 $35 11 3 $30 13 1 a.) Draw and properly label the demand and supply graphs (this means you must label the axes and any lines you include on the graph). b.) What is the equilibrium price and quantity? a.) b.) PRICE: $45 QUANTITY: 7 Now‚ assume that a new government report claims that video game
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China’s Market Economy in the Long Run For the majority of the last 2000 years Asia has been at the dominance of the world development in terms of GDP. China + Japan at the lead have accounted for roughly 25 to 35 percent of the world GDP until the late 1800s when US and UK combined for the lead in the share of GDP. China had become the worlds poorest country and Japan had been militarily governed while the rest of Asia was fighting amongst the Cold War. Until of late (peaking in 1950) the western
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THE UNIVERSITY OF THE WEST INDIES ST. AUGUSTINE FACULTY OF SOCIAL SCIENCES DEPARTMENT OF ECONOMICS ECON2000: INTERMEDIATE MICROECONOMICS I – 2012/13 TUTORIAL SHEET 1 THE THEORY OF CONSUMER BEHAVIOUR PROBLEMS 1. The following data represent 5 points on the supply curve for orange juice: PRICE ($ PER GALLON) QUANTITY (MILLIONS OF GALLONS) 1 100 2 300 3 500 4 700 5 900 and these data represent 5 points on the demand curve for orange juice: PRICE
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Karynn Ortiz Week 2 HW Chapter 3. Problem 2 Consider an economy in which taxes‚ planned investment‚ government spending on goods and services‚ and net exports are autonomous‚ but consumption and planned investment change as the interest rate changes. You are given the following information concerning autonomous consumption‚ the magical propensity to consume‚ planned investment‚ government purchases and goods and services‚ and net exports. Ca =1500-10r c=0.6 T=1800 Ip=2400-50r G=2000
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