Labor markets are an important concept to understand in terms of how wages are determined. Identify one demand and supply factor that can impact wages in markets. Explain one of the main reasons why the large wage gap exists in the United States and provide one solution of this wage gap.
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Why is there a market failure in the 401(k) market? (Hint: read chapter 8 and its description of imperfect information) Write at least 2 paragraphs.
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Explain how to determine whether the law of demand holds given an input demand function and whether L and K are complements, substitutes, or unrelated inputs.
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Compare and contrast the impact of a change in the price of a good on the utility-maximizing bundle of goods with the impact of a change in the price of input on the output maximizing and cost-minimizing bundles of inputs.
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France's hybrid system of government. How does the hybrid system solve some of the problems France experienced with a parliamentary system?
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There are 4 ways of finding out how much people are WTP for improvements in environmental quality. One of them is “Hedonic estimation”. Explain this method by using an example?
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The reasons why the housing market is of particular interest to the Reserve Bank , and the steps the Bank can take to mitigate risks that might arise from the housing market. Make sure you discuss the macroprudential policy measures that the Bank has put in place to address concerns arising from the housing market
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Why Might Restaurants be Considered Safe During the Current National Pandemic?
Stephan Logan, M. Sc., Indigo Instruments, Modern Resource Management, wrote on March 10, 2000 that:
"There may be a threat to the restaurant industry (during the national pandemic) but in reality, they are the safest places other than your own kitchen."
Based on what was conveyed in the Webinar, would you agree with this statement? Why or Why Not?
Are there any variables that might cause you to disagree? Why?
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5. Assume that a country produces an output Q of 50 every year and that r* = 10%. Consumption C is 50 every year, and I = G = 0. Suppose there is a temporary drop in output in year 0, so Q falls to 28. Q returns to 50 in every future year. If the country desires to smooth C, how much should it borrow in period 0? What will the new level of C from then on? (Hint: calculate the new present value of output and then estimate the new constant level of consumption.)
A. The nation borrows 20 in period 0 and the new level of C is 48.
B. The nation borrows 22 in period 0 and the new level of C is 28.
C. The nation borrows 28 in period 0 and the new level of C is 36.
D. The nation borrows 48 in period 0 and the new level of C is 22.
6. If a nation experiences an output shock and wishes to borrow to smooth consumption, how much of consumer spending must it forgo each year to achieve consumption smoothing and maintain the long-run budget constraint?
A. an amount equal to r*/(1 + r*) of the output shock
B. an amount equal to r* as a percent of the former level of GDP
C. an amount equal to 20% of its output shock
D. 95% of the output shock
7. Which expression below represents the change in wealth in period 0? Use the following notation: Δ denotes change, Wt is external wealth at time t, TBt is the trade balance during time period t, and r* is the constant real interest rate. Assume that net labor income from abroad is zero, there are no capital gains on external wealth, and there are no unilateral transfers.
A. ΔTB0 = W0 + r*W-1.
B. ΔW0 = TB0 + r*W-1.
C. ΔW-1 = ΔW0 + TB0.
D. ΔTB0 = ΔW-1 + r*W-1.
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What are the possible consequences for Yemen in terms of it being labeled a failed state?
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In the case of Yemen, how does nationalism lead to conflict?
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Is a recessionary or inflationary gap bad for an economy? Have you ever wondered how the federal government and the Federal Reserve react to smooth out recessionary and inflationary gaps? In this activity, you will explore the concepts of fiscal policy and the attempts the U.S. government takes when the U.S. economy is in a recessionary or inflation gap. You will discuss the concepts of aggregate supply and aggregate demand to determine how the U.S. economy can work its way back to long-run equilibrium based.
Locate a recent article (published within the last year) that discusses fiscal policy and whether the U.S. economy is in an inflationary or recessionary gap. You can use the Hunt Library, newspapers, new stations, or other credible sources to locate an article. Analyze the article and then address the following concepts in your discussion.
Summarize your findings using at least 250 words and provide a minimum of one reference. Use current APA formatting to document your sources.
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If Brazilian oranges were sold in the United States, oranges and orange juice would be cheaper.
Use the laws of demand and supply to explain whether the above statement is true or false.
If Brazilian oranges are sold in the U.S. market, then the _________ will increase, the price of oranges _________.
A.
quantity of oranges supplied; will fall, and the statement is true
B.
supply of oranges; will fall, and the statement is true
C.
quantity of oranges supplied; will rise, and the statement is false
D.
supply of oranges; will rise, and the statement is false
If Brazilian oranges are sold in the U.S. market, the _________ will increase because _________.
A.
supply of orange juice; the cost of producing orange juice will fall and the quantity demanded will increase
B.
price of orange juice; the demand for orange juice will decrease
C.
quantity supplied of orange juice; it will be cheaper to produce orange juice and the quantity demanded will increase
D.
quantity of orange juice demanded; the quantity supplied will increase and its price will fall
17. Which of the following events in the market for smartphones illustrates the law of demand?
1. The price of a smartphone falls.
2. Producers announce that smartphone prices will fall next month.
3. The price of a call made from a smartphone falls.
4. The price of a call made from a land-line phone increases.
5.An increase in memory makes smartphones more popular.
A.
Events #1, #3, and #4
B.
Only Event #2
C.
Only Event #1
D.
Events #2, #3, #4, and #5
E.
All 5 events
A.
private goods
B.
rival goods
C.
exculdable goods
D.
environmental goods
A.
a flat tax
B.
proportional
C.
regressive
D.
progressive
A.
the economic decline of major industries.
B.
an economic recession.
C.
people not getting along (having friction) with their employers.
D.
changing weather throughout the year.
E.
the normal process of jobs being created and destroyed.
Dry weather has delayed rice planting and harvests will be low. But wheat is enjoying a bumper crop.
Using the demand and supply model, explain how the prices of rice and wheat will change and how the markets for rice and wheat will influence each other.
A poor rice harvest will _____ rice and ____ its price.
A.
decrease the demand for; raise
B.
decrease the supply of; raise
C.
decrease the demand for; lower
D.
decrease the supply of; lower
A.
increases the supply of; raises
B.
increases the demand for; raises
C.
increases the supply of; lowers
D.
increases the demand for; lowers
A.
substitutes, so a higher price of rice will increase the demand for wheat
B.
substitutes, so a lower price of wheat will increase the demand for rice
C.
complements, so a lower price of wheat will increase the demand for rice
D.
complements, so a higher price of rice will decrease the demand for wheat
A.
your real starting salary equals your father’s nominal starting salary.
B.
your starting salary exceeds your father’s starting salary.
C.
your starting salary is less than your father’s starting salary.
D.
your starting salary is the same as your father’s starting salary.
A.
equals the change in total spending divided by the change in total output.
B.
refers to the fact that a change in nonincome-determined spending leads to a larger change in total output and employment.
C.
allows for an increase, but not a decrease, in total output and income since wages and other incomes tend not to fall
D.
is larger the greater the portion of total spending going toward the purchase of imports.
A.
the costs of production will decrease.
B.
competition will force firms to attain economic profits rather than accounting
profits..
C.
competition will force firms to produce surplus output which drives up price
D.
the costs of production will increase.
A.
the deadweight loss that a tax generates.
B.
the inefficiency of a tax.
C.
the revenue collected by government because of a tax.
D.
the division of the burden of a tax between buyers and sellers.
E.
the division of the burden of a tax between the public and the government.
A.
$656
B.
$615
C.
$244
D.
$285
E.
$900
A.
legal barriers to entry
B.
a price-discriminating monopolist
C.
a case in which a single firm controls a resource necessary to produce the good
D.
natural barriers to entry
30. In the long run, a decline in the money supply ______ the price level and will lead to a ______ in real GDP.
a. lowers; reduction.
b. lowers; does not change.
c. lowers; increase.
d. does not change; increase.
A.
lowers, reduction
B.
lowers, does not change
C.
lowers, increase
D.
does not change, increase
A.
sell securities on the open market, raise the reserve requirement, and raise the discount rate.
B.
sell securities on the open market, lower the reserve requirement, and lower the discount rate.
C.
reduce the reserve requirement, reduce the discount rate, and reduce open market operations
D.
buy securities on the open market, lower the reserve requirement, and lower the discount rate.
A.
whether the good is a necessity or a luxury.
B.
the number of substitutes available to consumers
C.
the amount by which the demand curve shifts when the price of another good changes
D.
the time period buyers have to respond to a price change
E.
the price of the good relative to total income
A.
only the importer.
B.
only the exporter.
C.
both the exporter and the importer.
D.
the exporter at all times and sometimes also the importer.
E.
neither the exporter nor the importer.
A.
only the importer.
B.
only the exporter.
C.
both the exporter and the importer.
D.
the exporter at all times and sometimes also the importer.
E.
neither the exporter nor the importer.
A.
a normal; a normal
B.
neither an inferior good nor a normal good;
neither an inferior good nor a normal good
C.
an inferior; an inferior
D.
an inferior; a normal
E.
a normal; an inferior
A.
A reduction in the level of real GDP.
B.
The Fed’s purchase of government securities.
C.
A reduction in the discount rate.
D.
An increase in the required reserve ratio that decreases money supply.
E.
An increase in the price level.
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