ECO 111 Answer Key – WA#1 1. The "invisible hand" of the marketplace represents the idea that even though individuals and firms all act in their own self-interest‚ prices and the marketplace guide them to do what is good for society as a whole. Note: the “invisible hand” does not guarantee equilibrium. At the same time‚ it does not imply wealth redistribution – which is the worst thing for any economy. The easiest way to understand wealth redistribution is with the following example: suppose
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Question 1 1. Economics studies _____. How society manages its scarce resources social welfare ethical use of resources protection of workers’ rights 5 points Question 2 1. GDP ______ Is the Gross Domestic Price Index Measures the market value of all final goods and services produced in the U.S. in a given year Measures the cost of inputs to factories in a given year Measures the unemployment rate 5 points Question 3 1. Inflation results in _____. A general decrease in
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that the economy will return to its original full employment equilibrium according to: (a) the population dynamics theory. (b) psychological theories of the business cycle. (c) Joseph Schumpeter’s theory of creative destruction. (d) classical macroeconomic theory. (e) external shock theory. A graph showing a positive relationship between the interest rate and the expected inflation rate would illustrate the: (a) Cambridge equation. (b) Friedman’s liquidity effect. (c) Fisher effect. (d) Laffer
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positive but statistically insignificant effect on FDI inflow. The estimated long-run ARDL model showed that macroeconomic variables such as inflation‚ GDP and trade openness determined FDI inflow into Ghana. Notwithstanding the positive relationship between establishment of IP agency (GIPC) and FDI inflow‚ this relationship was statistically insignificant. Greater efforts at macroeconomic management specifically‚ promotion of external trade‚ increasing GDP and reducing inflation holds more promise
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Deliverable Week 4 Learning Team Deliverable TA-4D) Recessions seem to show up every so often and create economic hardship. One might think that macroeconomic policymakers could tame the business cycle and implement policies that would end recessions. Are recessions a necessary fact of macroeconomic life? If not‚ what would it take to eliminate them? If they are unavoidable‚ what types of business can benefit from them? How would a recession affect your firm? Economists
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Econ 110A: Macroeconomics • Text: Macroeconomics‚ by Olivier Blanchard 5th edition-updated‚ Pearson/Prentice Hall or second edition of UCSD custom • Professor Marjorie Flavin Office: Economics Building #216 General email: mflavin@ucsd.edu Better email: Instead of using my general email above‚ please email from within TED. Office hours: Tuesdays‚ 10:00 – 12:00 or by appt. Lecture 1‚ Tuesday‚ January 10 1 Web site is on TED. If you are enrolled in the course as a regular student‚ you should already
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be viewed as a special branch of economics bridging the gulf between pure economic theory and managerial practice. Economics has two main divisions :- (i) Microeconomics and (ii) Macroeconomics. Microeconomics has been defined as that branch of economics where the unit of study is an individual or a firm. Macroeconomics‚ on the other hand‚ is aggregate in character and has the entire economy as a unit of study. Microeconomics‚ also known as price theory or Marshallian economics which is the main
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success or failure of their enterprise. How does macroeconomics affect business? Macroeconomics is the field of economics that studies the behavior of the economy as whole and not just specific companies‚ but the entire industries and economies. This study looks at economy-wide phenomena‚ such as Gross National product and how it is affected by changes in McKenzie 2 unemployment‚ national income‚ rate of growth‚ and price levels. Macroeconomics look at how an increase or decrease in net exports
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Principles of Economics chapters 1. Ten Principles of Economics 2. Thinking Like an Economist 3. Interdependence and the Gains from Trade 4. The Market Forces of Supply and Demand 5. Elasticity and Applications 6. Supply‚ Demand‚ and Government Policies 7. Consumers‚ Producers and the Efficiency of Markets 8. Application: The Costs of Taxation 9. Application: International Trade 10. Externalities 11. Goods and Common Resources 12. The Tax System 13. The Costs of Production 14. The Competitive
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Question 2. Choose the sector in South Africa Economy‚ which exhibits the features of Oligopoly. With more than 30 Million South African mobile phone owners according to data from the “SA Mobile Market “statistical handbook‚ and since this market is dominated by three companies‚ which exhibits the features of oligopoly in South Africa. Oligopoly refers to a few sellers with similar products and dominates the market and can influence each other. There are 3 mobile phone service providers‚ which
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