. THE ECONOMIC PROBLEM AND ECONOMIC SYSTEMS The economic activity of a society consists of activities related to the production and consumption of goods and services. Since earliest times‚ the primary function of organized society has been economic in nature. The other elements of civilized society -- architecture‚ literature‚ music‚ etc. -- emerge only after the material needs of the society have been amply provided for. Poor societies do not build great pyramids‚ erect magnificent cathedrals‚ or
Free Economics Economy Economic system
Question1 A fast food restaurant currently pays $5 per hour for servers and $50 per hour to rent ovens and other kitchen machinery. The restaurant uses seven hours of server time per unit of machinery time. Determine whether the restaurant is minimizing its cost of production when the ratio of marginal products (capital to labor) is 12. If not‚ what adjustments are called for to improve the efficiency in resource use? The ratio of prices PK/PL= r/w= 50/5=10 and The capital
Premium Economics
Assignment #4: CHAPTER 3 - Why Do Firms Cluster? 2. Labor Pooling: What’s Fixed and Variable? Consider the model of labor pooling‚ with each firm locating either in an isolated site or in a cluster with other firms. Fill the blanks with "fixed" or "variable". A. In an isolated site‚ the wage is variable and the firm’s workforce is fixed because the supply of labor is perfectly inelastic. B. In a cluster‚ the wage is fixed and the firm’s workforce is variable because the supply of labor is
Premium Supply and demand Firm Automobile
MBA 515 Practice Multiple Choice Questions 1. If the price of automobiles were to increase substantially‚ the demand curve for gasoline would most likely A) shift leftward. B) shift rightward. C) remain unchanged. D) become steeper. 2. Recently‚ many cities have attempted to pass laws taxing the sale of sugary drinks such as soda pop. If one of these laws passes‚ we would expect A) the supply curve for soda pop to shift to the right. B) the supply curve for soda pop to become more vertical
Premium Supply and demand Economics Microeconomics
1：Mercantilists believed that a nation would benefit from achieving: an even trade balance (exports equal to imports). a positive or favorable trade balance (exports larger than imports). as much self-sufficiency as possible (minimal exports and imports). a trade deficit‚ funded by loans from other nations. [我的答案] a positive or favorable trade balance (exports larger than imports). 2：Adam Smith’s theory was based on the labor theory of value‚ assuming that: the value of labor depended
Premium International trade Economics
1. Labor Demand curve for Perfect Competition and Labor Demand for Labor for Imperfect Competition * Table 1.1 Demand for Labor: Firm selling in a Perfectly Competitive Product Market Units of Labor | TP | MP | Product Price‚ P | Total Revenue‚ TR | MRP (TR/L) | VMP (MP*P) | 4 | 16 | | $2 | $32 | | | 5 | 28 | 12 | 2 | 56 | $24 | $24 | 6 | 37 | 9 | 2 | 74 | 18 | 18 | 7 | 43 | 6 | 2 | 86 | 12 | 12 | 8 | 46 | 3 | 2 | 92 | 6 | 6 | 9 | 48 | 2 | 2 | 96 | 4 | 4 | * X- Axis
Free Economics Perfect competition Employment
The stability and prosperity of the government in the developing countries allows for a more stable situation in the region and therefore increases Australia’s national security. However‚ providing aid to developing countries can result in an economic disadvantage for Australia. The donation of foreign aid can lead to the recipient country developing a culture of dependence‚ so instead of using the aid money provided by Australia to help develop their country by implementing programs and policies
Premium International relations Australia Papua New Guinea
Kelsea Shick Economics October 5‚ 2010 An economic system consists of production‚ distribution/consumption of goods and services of an economy (Grolier). Without any of the above an economy would not become as industrialized and successful as either the
Premium United States Mixed economy Market economy
Quiz 1 1. An increase in the imports of clothing into the U.S from India wills benefits the____________ & hurt the___________. A) U.S. clothing producers; Indian clothing producers B) Indian consumers; Indian clothing producers C) U.S consumers; Indian clothing producers D) U.S consumers; U.S clothing produces 2. Suppose Country A‚ a labor-abundant country‚ produces only wheat & cloth. The following equations illustrate the prices & costs of wheat and cloth in
Premium Economics Supply and demand International trade
Assess the view that making an oligopolistic market more contestable is the best way to improve the efficiency of that market. The theory of perfectly contestable markets was presented as a generalization of the theory of perfectly competitive markets and was presented as providing guidelines for the conduct of regulation‚ namely to allow freedom of entry and exit and to ensure equal access of competitors. An oligopolistic market is a particular market that is controlled by a small number of firms
Free Economics Perfect competition Monopoly