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Analyze why the prices of gasoline rose so high over the summer. Was it because OPEC cut back production and the number of people driving was more? Illustrate this using a graph showing a decrease in
With a beta equal to .85 and a risk-free rate of 5%, if the required return on Navistar, Inc. is equal to 9%, what is the required return on the market, rM , assuming the market is in equilibrium?
Huntsman International’s stock has a beta of 1.23, its required return is 11.75%, and the risk-free rate is 4.30%. What is the required rate of return on the stock market? (Hint: First find the
What is the maximum amount that the money supply can increase when $1,000 cash is injected into a banking system with a 20-percent reserve requirement? Give two reasons why this maximum may not be rea
Assume that the federal government increases spending on public works programs, such as highway construction, by $40 billion. How does this change in spending affect the aggregate demand curve? Explai
Having a 100% crime free society is not likely to be attainable. Why? Do you agree or disagree? Make your case, whether you agree or disagree, by using the tools of economics of crime prevention.
If the market for unskilled labor is highly competitive, what would a minimum wage legislation do to their level of employment? What remedies do you propose if the market fails to provide adequate inc
Using the tools of demand and supply analysis, illustrate the impact of rent control on the market for housing in a free market economy. Would a voucher system of housing subsidy for the poor or low i
It is rumored that the Swiss government subsidizes cattle farming and that the subsidy is larger in areas with more tourist attractions. Can you think of a reason this policy might be efficient?
What are some economic, social, and political reasons that make economic growth important to a nation? How could a population increase contribute to economic growth, and how could it hinder growth?
If the price of one good changes, what part of the change in demand is due to the substitution effect, and what part is due to the income effect?
If the actual output is seven billion and the potential output is eight billion, then this economy has a(n);budget deficit OR trade deficit OR inflationary gap OR recessionary gap.
If planned investment increases by nine dollars and disposable income increases by ten dollars, what is the marginal propensity to consume?
Compare and contrast the outcomes with respect to price and output under a monopoly versus a perfectly competitive market. In which situation are consumers better off? Why?
Explain why a firm should continue to operate in the short run so long as market price is greater the firm's average variable cost at the profit-maximizing level of output.
Suppose a firm has total cost function given by TC(Q)=10Q+70. What are its marginal costs when producing 10 units of output?
Describe how the following quotes from the articles that opened this chapter relate to the AD-AS model: "The declining dollar, while boosting U.S. exports, is adding to inflation pressure, as goods pr
The cost function at a car manufacturing firm estimated as TC = 250 + 150Q - 2.5Q^2 + 0.5^3. Derive the MC and AC functions; What are TC amd AC at an output of 123 units? What is the value
Demand function Q = 20 - 0.2P, MC = 10 + 5Q, given that TFC = $2,000. Derive and equation for TC; Calculate the profit at the profit maximizing level.
Stlyes Inc. estimates that the total annual cost of producing shirts given equation TC = 5,000 + 4,100Q - 8Q2 + 0.004Q^3. If the market price is constant, what is the shutdown level of output?
Company A successfully launches a hostile takeover of company B, in which company A purchases all the assets of company B.
What are some of the problems in using fixed weights to compute real GDP and the GDP price index? How does the BEA’s approach attempt to solve these problems?
What will happen to the money supply in a checkable-deposits-only system? a) The required reserve ratio is 10%, and a depositor withdraws $2,000 from his checkable bank deposit.
Suppose the government wants to improve the living standard of entry-level workers. Two policies are being considered – an increase in the minimum wage
Does anyone know about the relevance of Keynesian economics to recent economic policy in the United States? If yes, please explain me about this, and if it's possible, give me some resources for this