Define net exports and net capital outflow. Explain how and why they are related. The net exports of any country are the difference between the value ..
What is the theory of liquidity preference? How does it help explain the downward slope of the aggregate demand curve? Theory of liquidity preference ..
Explain how each of the following developments would affect supply of money, the demand for money, and the interest rate. Illustrate your answers with..
Suppose an economy is in long-run equilibrium.Long-run aggregate supplyUse the model of aggregate demand and aggregate supply to illustrate the initia..
Beleaguered State Bank (BSB) holds $250 million in deposits and maintains a reserve of 10 percent. Show a T-account for BSB. BankReserves $25 Deposits..
List the four components of GDP. Give an example of each. To understand how the economy is using its scarce resources, economists study the compositio..
-The word “economy” comes from the Greek word oikonomos meaning “one who manages a household.”-This makes some sense because in the economy we are fac..
CHAPTER15. MONOPOLY < PROBLEMS AND APPLICATIONS> Larry, Curly and Moe run the only saloon in town. Larry wants to sell as many drinks as possible wit..
WHAT THE HECK IS THAT? -The pressures of finding a job- Everyday we can watch the news about how it's getting hard to find jobs. Yesterday I watched t..
CHAPTER8. APPLICATION: THE COSTS OF TAXATION. This chapter analyzed the welfare effects of a tax on a good. Consider now the opposite policy. Suppose..
CHAPTER9. APPLICATION: INTERNATIONAL TRADE. < QUESTIONS FOR PRVIEW > Draw supply and demand diagram for an importing country. What is consumer surplu..
CHAPTER1. TEN PRINCIPLES OF ECONOMICS What is inflation and what causes it? What is inflation? In January 1921, a daily newspaper in Germany cost 0.3..
CHAPTER1. TEN PRINCIPLES OF ECONOMICS Explain whether each of the following government activities motivated by a concern about equality or a concern ..
CHAPTER4. THE MARKET FORCES OF SUPPLY AND DEMAND. Over the past 20 years, technological advances have reduced the cost of computer chips. How do you ..
CHAPTER5. ELASTICITY AND ITS APPLICATION. Suppose that your demand schedule for compact discs is as follows: Price Quantity Demanded (income=$10,000)..
CHAPTER9. APPLICATION: INTERNATIONAL TRADE. < PROBLEMS AND APPLICATION > The world price of wine is below the price that would prevail in Canada in t..
CHAPTER4. THE MARKET FORCES OF SUPPLY AND DEMAND What is a competitive market? Briefly describe a type of market that is not perfectly competitive. E..