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The City of Rochester is thinking of expanding its airport. The expansion will increase travelers' consumer surplus by $100 and airlines' producer surplus by $200, while costing taxpayers only $50. Ho
Draw the short-run tradeoff between inflation and unemployment. How might the Fed move the economy from one point on this curve to another?
The government spends $3 billion to buy police cars. Explain why aggregate demand might increase by more than $3 billion. Explain why aggregate demand might increase by less than $3 billion.
The business section of most major newspapers contains a table showing U.S. exchange rates. Find such a table and use it to answer the following questions. a. Does this table show nominal or real exch
Let’s consider the effects of inflation in an economy composed only of two people: Bob, a bean farmer, and Rita, a rice farmer. Bob and Rita both always consume equal amounts of rice and beans.
What happened to the elasticity of demand for American cars when the Japanese developed a strong auto industry? What happened to the elasticity of demand for American autoworkers? Explain.
What are the three categories into which the Bureau of Labor Statistics divides everyone? How does it compute the labor force, the unemployment rate, and the laborforce participation rate?
Using a diagram of the labor market, show the effect of an increase in the minimum wage on the wage paid to workers, the number of workers supplied, the number of workers demanded, and the amount of u
Suppose households believe that greater government borrowing today implies higher taxes to pay off the government debt in the future. What does this belief do to private saving and the supply of loana
Explain the difference between saving and investment as defined by a macro economist. Which of the following situations represent investment? Saving? Explain.
The chapter explains that Social Security benefits are increased each year in proportion to the increase in the CPI, even though most economists believe that the CPI overstates actual inflation.
Suppose a freeze in Florida destroys part of the Florida orange crop. a. Explain what happens to the price of oranges and the marginal product of orange pickers as a result of the freeze.
The makers of Tylenol pain reliever do a lot of advertising and have very loyal customers. In contrast, the makers of generic acetaminophen do no advertising, and their customers shop only for the low
Suppose that the president proposes a new law aimed at reducing heath care costs: All Americans are to be required to eat one apple daily.
Does a monopolistic competitor produce too much or too little output compared to the most efficient level? What practical considerations make it difficult for policymakers to solve this problem?
The U.S. government administers two programs that affect the market for cigarettes. Media campaigns and labeling requirements are aimed at making the public aware of the dangers of cigarette smoking
Beachfront resorts have an inelastic supply, and automobiles have an elastic supply. Suppose that a rise in population doubles the demand for both products (that is, the quantity demanded at each pric
Write a paragraph in which you describe the conditions under which a Web site could become profitable by relying exclusively on advertising revenue. In second paragraph
If the probability of a newborn child bieng female is 0.5, find the probability that in 100 births, 55 or more will be female.Use the normal distribution to approximate the binomial distribution.
If the price of a product is given by P(x)=(1024/x)+1500, where x represents the demand for the product, find the rate of change of price when the demand is 2.
Consider a perfectly competitive market with an upward sloping market supply curve. Explain the effects of a decrease in supply for the equilibrium price and quantity as well as the total amount of sp
Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate r. What would determine whether a student would choose to be a
An economy is faced by exhaustion of an important natural resource at a time when it is introducing improved technology.explain how these events will effect the economy production possibility curve.
1) when inflation rises quickly, borrowers will be hurt or lenders if the actual inflation rate is less than the expected inflation then:
How does analysis of demand contribute to business decision making give your answer with reference to the responsibilities of a sales manager?