Part 2. Total 50 marks ( 10 marks each). 1. Explain why you would be more or less willing to buy gold under the following circumstances: a. Gold again becomes acceptable as a medium of exchange. (2 marks) b. Prices in the gold market become more volatile. (2 marks) c. You expect inflation to rise‚ and gold prices tend to move with the aggregate price level. (3 marks) d. You expect interest rates to rise. (3 marks) Outline of solutions: (a) More‚ because it has become more liquid;
Premium Investment Debt Loan
Here are my musings for chapter 3.This chapter consists of applications – some of which are complex – of the labour supply model to social insurance programs. The central theme of this chapter is the central trade-off that any social insurance program faces between the goal of alleviating economic hardship for those who suffer income losses on one hand and the goal of maintaining reasonably strong incentives to work. In a nutshell‚ these very important programs – which are considered to
Premium Social security Tax Income
Eco 372 Economic Recommendations Economic Recommendations August 7‚ 2012 ECO/372 In December‚ 2007‚ an economic downturn began. A recession ensued and by September‚ 2008‚ it earned the name of the Great Recession (Yglesias‚ 2011). The unemployment rate‚ declining values in the housing market‚ increasing foreclosures‚ bankruptcies‚ the swelling federal debt‚ increasing food prices‚ and multiplying fuel prices demanded an economic response through fiscal policy and monetary policy. As a result
Premium Unemployment Economics United States
The Differences Between Macro & Micro Economics . Microeconomics • Microeconomics studies business decisions made on an individual level. A small business owner‚ for example‚ must consider all sorts of financial decisions in order to keep a business afloat and operating‚ such as the allocation of resources‚ and must follow the tax and state regulations created by the government. Price levels must also be determined with the help of supply and demand. A business owner must thus need to know how
Premium Macroeconomics Economics Inflation
1. An article in Marketing News argued that the level of significance used when comparing two products is often too low – that is‚ sometimes you should be using an α value greater than 0.05. Specifically‚ the article recounted testing the proportion of potential customers with a preference for product 1 over product 2. The null hypothesis was that the population proportion of potential customers preferring product 1 was 0.50 and the alternative hypothesis was that it was not equal to 0.50. the p-value
Premium Null hypothesis Statistical hypothesis testing Statistics
Long-Term Investment Decisions EC0-550 June 20‚ 2014 Royersford Knitting Mills‚ Ltd.‚ sells a line of women’s knit underwear. The firm now sells about 20‚000 pairs a year at a average price of $10 each. Fixed cost amount to $60‚000‚ and total variable cost equal $120‚000. The production department has estimated that a 10 percent increase in output would not affect fixed cost but would reduce average variable cost by 40 cents. The marketing department advocates a price reduction of 5 percent
Premium Marginal cost Costs Variable cost
Tum Tum Souriyamath Mr. Sumner A3 – Sociology April 1‚ 2013 Peer Pressure Teenagers are at the stage in their life where they are trying to figure out their role in society. During your teenage years is where you learn more about what the world has to offer. While you are growing up you gain many freedoms‚ you start becoming your own individual‚ and you ’re put in situations where you have to make your own decisions and choices. Some choices that teenagers make during this point in time may
Premium Adolescence Peer pressure Peer group
25800 Teacher Name Dr. Sells 9th Grade 9th Grade The Effect of Peers on Young Teens (Teen-Adult Hood) Peer pressure affects many teens lives daily. Peer pressure means to want to adopt a specific behavior‚ style‚ or even attitude (“Peer”). Peer pressure affects teens all over the world; no matter where someone is people can influence them easier than imaginable‚ especially if they are young. Peer pressure can push teens so far that they will end up possibly harming or even killing
Free Adolescence Peer group Affect
Causes and Effects of Peer Pressure Everest College Cause and Effects of Peer Pressure Peer pressure is a way to control or influence others. A negative effect of peer pressure is anything that someone forces another to do that makes them feel uncomfortable. It causes young individuals to do things they know is wrong which can be very dangerous. A teenage boy can convince a teenage girl to have sex with him because “everyone is doing it”. The teenage girl
Premium Adolescence Peer pressure Causality
TEENS & PEER PRESSURE • To be a member of a peer group is the primary goal of most teenagers during adolescence. The feeling of belonging and social acceptance is very strong at this stage of development. This is why peer influence plays a huge part in steering the experiences and interest of teenagers. When teens are searching for their identity and the concepts that they want to define themselves by‚ social influences and peer interaction play a huge part in this process. These two factors
Free Adolescence Peer group