Claim that Adam Smith's theory of the marketplace outdated. Provide 3 reasons and examples to support this claim

Question 2

Draw the marginal cost (MC), average variable cost (AVC) and average total cost (ATC) curves for a typical firm in a diagram, and briefly explain the relationship between:

a. AVC and ATC.

b. MC and ATC.

Explain impact of provisions under the Constitution of India on economy along with suitable examples.

The 1990s were characterized as the “lost decade” for Japan. Growth in per-capita GDP was very low as the economy stagnated. The IS-LM model played a key role in the economist’s debates. This question is about trying to understand which policy the government should use to try to pull Japan out of a recession.

1. Interest rates were extremely low in Japan at this time. When interest rates get close to zero, the demand for money is extremely high (say close to infinity). In this case, what does the LM curve look like? Draw a picture of what the LM curve may look like for Japan.

2. Now, let’s think about the IS-LM equilibrium in Japan. Which part of this LM curve do you think the Japanese economy is in equilibrium at? Indicate this on your graph and draw in the IS curve now to give you an equilibrium at that point.

3. How effective a tool is a monetary policy for pulling the economy out of the recession in Japan?

1)In the IS–LM model, the impact of a decrease in government purchases in the goods market has ramifications in the money market, because the decrease in income causes a(n) ______ in money ______.

A) Increase; supply;

B) Increase; demand;

C) Decrease; supply;

D) Decrease; demand.

2)If the IS curve is given by r = 18 – .01Y and the LM curve is given by r = -4 + .01Y, if the full employment level of output is 1,200, then in the long run, with no government policy intervention (hint: what is the short run equilibrium Y and think about SRAS and LRAS as well as the IS-LM)

1. The price level decreases and the output level increases;
2. The price level decreases and the output level decreases;
3. The price level increases and the output level increases;
4. The price level increases and the output level decreases.

3)If the IS curve is given by r = 18 – .01Y and the LM curve is given by r = -4 + .01Y, if the full employment level of output is 1,200, then in the long run (hint: what is the short run equilibrium Y and think about SRAS and LRAS as well as IS-LM)

1. The LM curve will shift downwards (to the right) and the interest rate will increase.
2. The LM curve will shift upwards (to the left ) and the interest rate will decreases.
3. The LM curve will shift downwards (to the right) and the interest rate will decrease.
4. The IS curve will shift inwards causing the interest rate to increase

Think about the last movie you saw in a movie theater. What aspects of the movie had international components in it? Are there more international elements included than compared to your favorite movie from 10 years ago?

No Long-Run Economic Profits 1717 unread replies.1717 replies. a) Explain & depict the LongRun equilibrium for a monopolistically competitive firm. *Draw and upload graphs to depict the long-run

What are the benefits and opportunity costs to a bank that maintains a consistent level of excess reserves?

Suppose that you are given the following information about a particular economy C = 500 + 0.75(Y –T) Where C = consumption T = 1,000 T = taxes I = 750 – 25r I = investment G = 1,000 G = government spending M = 3,200 M = Money Supply P = 2 P = Price level (M/P)d = M/P = 0.5Y – 50r r = real interest rate in percent (i.e., 10 = 10%)

a)Using this information generate the equations for the IS and the LM curve (with Y and then r on the left hand side)

b)Using this information, calculate the short run equilibrium level of output (Y), interest rate (r), and investment (I).

c)Suppose that the long run full employment level is 5,000, and there is no government interference in the economy.

explain briefly (without diagrams) how the economy will adjust to the long run equilibrium (you can start by envisaging the SRAS-AD-LRAS framework and draw diagrams on scrap paper)

calculate the interest rate in the long run equilibrium Real balance (M/P) in the long run equilibrium Price level in the long run equilibrium

How would your answer to part (c) in question 2 above differ if the government decides to attain the full employment level of output though the use of fiscal policy (changing G)

John Hardwig defends the position that a person could have a duty to die (at the least by no longer trying to continue living) in certain circumstances, although he notes that he does not think it should be enforceable. His view arises largely from his rejection of the ‘individualistic fallacy’ and an implicit understanding that resources are often limited. Does this stance open the door to claiming that medical professionals may have a duty to take into account more than the patient’s best interests? Why or why not?

What are the long-term ramifications of investing heavily in human welfare at the expense of economic production?

Why should you care about inflation?

A. It affects your purchasing power

      B. It affects the monthly payment on a fixed-rate mortgage

       C. It affects the monthly payment on a fixed rate car loan

       D. All of the above

When the value of the U.S. dollar rises, what does that mean for your personal finances?

A. Overseas travel is less expensive

B. Imported goods are cheaper

C. Your foreign investments are worth less

D. All of the above