As mentioned at the beginning of the Chapter 2 (Santerre and Neun), the life expectancy rate in Russia fell significantly from 1989 through 1994. Use health production theory to explain what would happen to the relationship between good health and medical care in Russia if alcohol consumption diminished and the market economy strengthened. Provide a graph to illustrate your explanation.
In: Economics
In: Economics
Show using a graph that if a monopolist in an input market faces a monopsonist in the same input market, the equilibrium level of input use is indeterminate.
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Describe a time when someone did not really listen to or understand a point you were trying to get across. Describe the actions you took to try to make them understand your point. How do these actions apply to negotiations and sales?
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1.) Think back to August 6, 1945. The United States has just dropped an atomic weapon on the city of Hiroshima killing tens of thousands of Japanese and devastating the infrastructure. A Keynesian at that time might conclude that there is a silver lining in the destruction, as economic prosperity will result. Evaluate this claim in a few sentences.
2.) Do people need money in order for market prices to form? Explain.
3.) Most introductory economics textbooks have a section on “market failure.” It is here that students learn that markets may fail to achieve their potential – leaving people worse off than they theoretically could be. The existent of market failure is often taken as an excuse for government intervention to do whatever markets fail to do. In just a couple of sentences, explain why economists (and others, particularly politicians) must accept the possibility of “government failure” as well? That is, tell me why government solutions to perceived market “failures” may themselves fail to achieve their own stated goals? The U.S. Drug war is an apt example of a discrepancy between a stated political policy goal and the actual attainment of that goal.
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3. One of Argentina's priorities should be to fight inflation said the International Monetary Fund (IMF) in a report. The inflation rate fluctuates around 24%. Propose what the central bank of Argentina could do to fight inflation. Use the economic models and graphs to support your answer.
In: Economics
Executive Pay
1. Explain the Ratio between CEO and average worker pay
2. Explain how the economy is suffering from executive pay
3. What are the principles of executive compensation
In: Economics
There is a positive relationship between two variables if
they move in the same direction.
they move in opposite directions.
neither variable moves.
one variable changes and the other does not.
One of the most obvious clues to the relative scarcity of a product is
its current market price.
the variations in available sizes.
the quality of the product.
the limited selection of colors.
Recall the Application about the harmattan and how it affects the price of cocoa to answer the following question(s).
According to this Application, the longer than usual harmattan has impacted the supply curve for cocoa pods, shifting the supply curve to the ________ due to a(n) ________ in cocoa yields.
left; decrease
right; decrease
left; increase
right; increase
If the number of automobile manufacturers decreases,
the supply of automobiles increases.
the demand for automobiles decreases.
the supply of automobiles decreases.
the demand for automobiles increases.
If the price elasticity of demand is 2, this means that a ________ increase in price causes a ________ decrease in quantity demanded.
15%; 100%
20%; 40%
15%; 10%
30%; 20%
Claudia spends her income on two goods, DVD rentals and chewing gum. She considers both goods to be normal goods. If Claudia's income increases and the prices of the two goods remain constant, she will:
rent fewer DVDs and purchase less chewing gum.
rent more DVDs and purchase less chewing gum.
rent fewer DVDs and purchase more chewing gum.
rent more DVDs and purchase more chewing gum.
Recall the Application about finding estimates of elasticities of demand to answer the following question(s).
According to the Application, the regular price elasticities of demand found at www.ers.usda.gov are reported as
positive numbers.
negative numbers.
dollars per unit of foreign currency.
foreign currency units per dollar.
In: Economics
can you give me 4 references related to progressive insurance corporation
In: Economics
Imperfect competitors can justify not restricting output to the profit maximizing level because:
a) They want to maximize long term profits.
b) They are concerned about avoiding a possible anti-trust suit.
c) They are concerned about other firms entering the market.
d) Any of the above.
e) None of the above.
In: Economics
For each of the following events affecting equilibrium inflation rate and unemployment rate, indicate the specific short-run result that will occur. Note some of these events may affect both aggregate supply and aggregate demand. Your answers should be based on the single strongest change.
Result A: Inflation increases, Unemployment increases
Result B: Inflation decreases, Unemployment decreases
Result C: Inflation decreases, Unemployment increases
Result D: Inflation increases, Unemployment decreases
Result | Event |
Government raises personal income taxes. | |
The price of imported final goods falls. | |
The interest rate rises. | |
There is an increase in the price of foreign oil. | |
Environmental pollution standards are tightened substantially. |
|
A reduction of foreign consumption of U.S. products occurs. |
|
An increase in government purchases occurs. | |
Households prefer to save more | |
Inflationary expectations increase. | |
The prices of imported intermediate goods falls |
In: Economics
In: Economics
For which of the following countries - Japan, US, Brazil, Ethiopia - is the divergence between GNP per capita measured at official exchange rates and at purchasing power parity (PPP) likely to be largest? Which is likely to be smallest? Explain why for both answers.
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The paradox of thrift is an idea that was popularized by the early 20th century economist John Maynard Keynes. It says that when individuals try to save more (such as during uncertain economic times), it will lead to a fall in aggregate demand and hence in income. Keynes was arguing that what seems to be a good idea – i.e. thrift – produces a bad outcome – i.e. a fall in income.
-Using the equation describing goods market equilibrium, explain how Keynes arrived at his conclusion.
-Using the graphical description of goods market equilibrium that focuses on savings and investment, does the same conclusion hold? How so?
-What do you think? Is it a true or false paradox?
In: Economics