actual (an increase in Aggregate Demand – AD) and potential (an increase in Aggregate Supply – AS) growth. In recent years‚ Singapore has experienced a number of main economic problems such as negative externalities and failure to achieve equity (microeconomic)‚ high inflation and a worsening balance of payments (BOP) (macroeconomic problems). There is a causal relationship between strong economic growth and these problems but strong economic growth is not totally responsible for the emergence of these
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Econ 100A–Midterm 2 solutions. Thursday‚ March 22‚ 2012. True/False (2 questions‚ 10 points total) Answer true or false and explain your answer. Your answer must fit in the space provided. T/F 1. (5 points) Suppose the government wants to place a tax on one of two goods‚ and suppose that supply is perfectly elastic for both goods. If the government wants to minimize the deadweight loss from a tax of a given size‚ it should put the tax on whichever good has worse substitutes. False: If
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Microeconomics 201 First Midterm Chapter 1 Introduction: What Is Economics? 1.1 What Is Economics? 1) Which of the following is n o t a factor of production? A) money B) human capital C) physical capital D) labor Answer: A 2) An arrangement that allows buyers and sellers to exchange things is called: A) a contract. B) money. C) efficient. D) a market. Answer: D 3) Economics is best defined as the study of: A) financial decision‑making. B) how consumers make purchasing decisions
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The marginal propensity to consume (MPC) is defined as the additional consumption that results from one dollar increase in disposable income. Bill’s disposable income goes from $100‚000 in 2001 to $200‚000 in 2002‚ and his consumption spending goes from $80‚000 in 2001 to $140‚000 in 2002. Which of the following statements about Bill is true? Bill’s MPC is equal to 0.6. Which of the following changes in disposable income would lead to the greatest increase in consumption? a $20‚000 increase
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Research Proposal To: Jeffery Wehr‚ Florida International University online professor From: Talya Van Embden Date: May 24‚2014 Subject: Request for website usability and recommendation research Statement of Problem: In today’s world‚ the need and use of technology is growing rampant in the education field. Due to this‚ many government learning entities such as Universities offer online courses that allow of distance learning‚ and because of this website usability is a large aspect to these
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INCORRECT | | Over the past several years‚ the volume of world trade has: | | | A) | decreased because of increased government regulation of trade through tariffs and quotas | | | B) | decreased because of the decline in incomes brought on by global recession | | | C) | increased because of increased government regulation of trade through tariffs and quotas | | | D) | increased because of improvements in communications and transportation | | | | | | Feedback: Trade has
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Chapter 12 - Money and Banking in the Developing Economy Bimetallic Standard - A monetary system in which a government recognizes coins composed of gold or silver as legal tender. The bimetallic standard backs a unit of currency to a fixed ratio of gold and/or silver. Central Bank - A public institution that manages a state’s currency‚ money supply & interest rates. Central banks also usually oversee the commercial banking system of their respective countries. Recession - A period of slow
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6.1a) A monopoly is facing the demand and marginal cost curves which is P = 12 - 0.002Q and MC = 3 + 0.001Q. When the demand curve is P = a- bQ‚ the marginal revenue curve will be MR = a- 2bQ ‚ therefore‚ MR = 12 - 0.004Q.(Refer to figure1) Figure 1 To maximize the profits‚ the company should produce at the output level where marginal revenue is equal to marginal cost. If the marginal revenue is higher than marginal cost‚ the firm can increase profit by producing more. If
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Ten principles of economics HOW PEOPLE MAKE DECISIONS #1: People Face Tradeoffs There is no such thing as free lunch. To get one thing that we like‚ we usually have to give up another thing that we like. Making decisions requires trading off one goal against another. #2: The Cost of Something Is What You Give Up to Get It The opportunity cost of an item is what you give up to get that item. When making any decision‚ such as whether to attend college‚ decisionmakers should be aware of the opportunity
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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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