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flow is caused by the fact that households do not spend all of their income on consumption; part of their income is withdrawn as net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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Name __________________________ _________ last 4 PSU ID _______ Section 001 11:15 SPARKS MWF Spring 2011 Chuderewicz YOU MUST USE THIS AS A TEMPLATE – NOTEBOOK PAPER IS NO LONGER ACCEPTED - MAKE SPACE FOR YOUR ANSWERS BY HITTING ENTER (you certainly don’t need to type this assignment)– LEAVE THE QUESTIONS AS THEY ARE – AND PLEASE STAPLE! ALSO‚ PLEASE PUT THE FIRST TWO LETTERS OF YOUR LAST NAME IN THE TOP RIGHT HAND CORNER OF THIS PAGE SO THAT WE CAN ALPHABETIZE THESE EASILY. THANKS IN
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Chapter 1 Introduction Multiple-Choice Questions 1) The best definition of economics is A) how choices are made under conditions of scarcity. B) how money is used. C) how goods and services are produced. D) how businesses maximize profits. Answer: A Level of Difficulty: Easy 2) Managerial economics is best defined as the economic study of A) how businesses can make the most profits. B) how businesses can decide on the best use of scarce resources
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Q1. When the income distribution gets very skewed‚ with a small number of people getting a large portion of the income‚ the taxation system can be used to redistribute some of the income so that the poor aren’t as poor and the rich aren’t as rich. Taxes can be used to redistribute some income to the poor. The government can use a progressive income tax. The definition of progressive tax is the taxing mechanism in which the taxing authority charges more taxes as the income of the taxpayer increases
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