All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Tutor New

Search
Sign In
Register

study help
business
introduction to economic

Questions and Answers of Introduction To Economic

How would you put dollar values on the benefits and costs of truck safety regulations (News, p. 270)? Do benefits exceed costs? LO2
In most cities local taxi fares are regulated. Should such regulation end? Who would gain or lose? LO3
Prior to 1982, AT&T kept local phone rates low by subsidi zing them from long-distance profits. Was such crosssubsidization in the public interest? Explain. LO1
Why would a profit-regulated firm want to sell itself inputs at inflated prices? Or increase wages? LO3
Given the inevitable limit on airplane landings, how should available airport slots be allocated? How would market outcomes be altered? LO2
Discuss the costs associated with regulation.
Identify the regulatory dilemmas posed by natural monopoly.
List the characteristics of natural monopoly.
9. On the graph below, draw the AD and AS curves with these data:Price level 140 130 120 110 100 90 80 70 60 50 Real output Demanded 600 700 800 900 1,000 1,100 1,200 1,300 1,400 1,500 Supplied 1,200
8. Complete the following table:(a) What is the level of equilibrium GDP?(b) What is the equilibrium price level?(c) If full employment occurs at real GDP 5 $200 billion, what kind of GDP gap
7. What was the range, in absolute percentage points, of the variation in quarterly growth rates between 2000 and 2008 of(a) Consumer spending?(b) Investment spending?(Note: See Figure 9.8 for data.)
6. Illustrate on the following graphs the impact of Panasonic’s changed investment plans(World View, p. 188).
5. If every $1,000 increase in the real price of homes adds 5 cents to annual consumer spending (the “wealth effect”), by how much did consumption decline when home prices fell by $2 trillion in
4. Illustrate on the following two graphs the wealth effect from declining home prices (discussed on p. 186).
3. On the accompanying graph, draw the consumption function C = $100 + 0.8 YD . (a) At what level of income do households begin to save?Designate that point on the graph with the letter A.(b) By how
2. (a) What is the implied MPC in the News on page 184?(b) What is the implied APC?
1. From the information on pages 179–181 in 2007 what was(a) The APC?(b) The APS?(c) The MPC?(d) The MPS?
6. How should home builders respond when they see home prices falling? LO2
5. According to the World View on page 188, why did Panasonic cut investment spending in 2009? Was this a rational response? LO2
4. Why would an employed consumer cut spending when other workers were being laid off (see News, p. 185)? LO2
2. Why do rich people have a higher marginal propensity to save than poor people? LO1
1. What percentage of last month’s income did you spend?How much more would you spend if you won a $1,000 lottery prize? Why might your average and marginal propensities to consume differ? LO1
LO3. Explain how and when macro failure occurs.
LO2. Describe how and why AD shifts occur.
LO1. Identify the components of aggregate demand and their determinants.
5. According to the News on page 159,(a) By what percent did GDP decline?(b) How much output was lost in the $14 trillion economy?(c) How much income did this represent for each of the 300 million
4. Use the following information to draw aggregate demand (AD) and aggregate supply (AS) curves on the graph below. Both curves are assumed to be straight lines.Price Level Output Demanded Output
3. Suppose you have $500 in savings when the price level index is at 100.(a) If inflation pushes the price level up by 10 percent, what will be the real value of your savings?(b) What is the real
2. In Figure 8.8 , what price level will induce people to buy all the output produced at full employment?
1. (a) How much output is unsold at the price level P 1 in Figure 8.7 ?(b) At what price level is all output produced sold?
10. Could President Obama have pursued the classical policy strategy? LO3
4. How did the decline in U.S. home prices in 2006–8 affect aggregate demand? LO2
What, if anything, can the government do to promote steady economic growth?
What forces cause instability?
How stable is a market-driven economy?
LO3. Assess how changes in AD and AS affect market outcomes.
LO2. Describe the nature of aggregate demand (AD) and aggregate supply (AS).
LO1. Distinguish the major macro outcomes and their determinants.
11. On the accompanying graph, illustrate for each year ( A ) the nominal interest rate (use the prime rate of interest), ( B ) the CPI inflation rate, and ( C ) the real interest rate (adjusted for
10. Using the information of page 139 and Table 7.5 , by how much did the price level increase(a) Between 1982–84 and 2009?(b) Between 2000 and 2009?
9. According to Table 7.3 , what happened during the period shown to the(a) Nominal price of gold?(b) Real price of gold?
8. Use the GDP deflator data on the inside cover of this book to compute real GDP in 2000 at 2008 prices.
7. Use the item weights in Figure 7.2 to determine the percentage change in the CPI that would result from a(a) 10 percent increase in entertainment prices.(b) 6 percent decrease in transportation
6. Suppose the prices listed in the table for Problem 5 changed from one year to the next, as shown below. Use the rest of the table to compute the average inflation rate.Unit Price Percent Item
5. Assuming that the following table describes a typical consumer’s complete budget, compute the item weights for each product.
4. Suppose you borrow $1,000 of principal that must be repaid at the end of 2 years, along with interest of 5 percent a year. If the annual inflation rate turns out to be 10 percent,(a) What is the
3. Suppose you’ll have an annual nominal income of $40,000 for each of the next 3 years, and the inflation rate is 4 percent per year.(a) Find the real value of your $40,000 salary for each of the
2. If tuition keeps increasing at the same rate as in 2008–9 (see News, p. 132), what will it cost to attend a 4-year private college in 4 years?
1. According to the World View on page 136, how much did a loaf of bread cost in Zimbabwe(a) At the beginning of the 3-week period?(b) At the end of the 3-week period?
11. How much do higher gasoline prices contribute to inflation? LO1
10. Could demand-pull inflation occur before an economy was producing at capacity? How? LO3
9. Identify two groups that benefit from deflation and two that lose. LO2
8. Are people worse off when the price level rises as fast as their income? Why do people often feel worse off in such circumstances? LO2
7. Would it be advantageous to borrow money if you expected prices to rise? Would you want a fixed-rate loan or one with an adjustable interest rate? LO2
6. If all prices increased at the same rate (i.e., no relative price changes), would inflation have any redistributive effects? LO2
5. Whose real wealth (see Table 7.3 ) declined in the 1990s?Who else might have lost real income or wealth? Who gained as a result of inflation? LO2
4. Who gained and who lost from the price changes in Table 7.2 ? LO2
3. Who gains and who loses from rising house prices? LO2
2. How might rapid inflation affect college enrollments? LO2
1. Why would farmers rather store their output than sell it during periods of hyperinflation? How does this behavior affect prices? LO2
LO3. Discuss the meaning of “price stability.”
LO2. Explain how infl ation redistributes income and wealth.
LO1. Illustrate how infl ation is measured.
10. On the accompanying graph, illustrate both the unemployment rate and the percentage change in real GDP (output) for each year. (The data required for this exercise are on the inside cover of this
9. In 2008, how many of the 800,000 black teenagers who participated in the labor market(a) Were unemployed?(b) Were employed?(c) Would have been employed if they had the same unemployment rate as
8. According to the data in the News on page 123, how high was the underemployment rate in January 2009?
7. Based on the data in the previous problem, what happens (“up” or “down”) to each of the following numbers in Year 2 when 1 million jobseekers become “discouraged workers”?(a) Number of
6. Suppose the following data describe a nation’s population:Year 1 Year 2 Population 200 million 204 million Labor force 120 million 123 million Unemployment rate 6 percent 6 percent(a) How many
5. According to Okun’s Law, how much output (real GDP) was lost in 2008 when the nation’s unemployment rate increased from 4.6 percent to 5.8 percent? $
4. Between 1980 and 2008, by how much did the labor-force participation rate ( Figure 6.2 ) of(a) Men fall? ________%(b) Women rise? ________%
3. If the labor force is growing by 1.5 percent per year, how many new jobs have to be created each month to keep unemployment from increasing?Web query: By how much did U.S. employment actually
2. Between 2000 and 2007, by how much did(a) The labor force increase?(b) Total employment increase?(c) Total unemployment change?(d) Total output (real GDP) increase?(e) The national unemployment
1. According to Figure 6.1 , what percent of the civilian labor force was(a) Employed? ________ %(b) Unemployed? ________%(c) What percent of the population was employed in civilian jobs? ________%
10. How can the outsourcing of U.S. computer jobs generate new U.S. jobs in construction or retail trade? (See News, p. 125.) LO3
6. When the Chrysler plant in South St. Louis closed(p. 111), whose jobs and incomes were affected? LO2
5. If the government guaranteed some income to all unemployed persons, how might the unemployment rate be affected? Who should get unemployment benefits? (See News, p. 117.) LO2
LO3. Explain the meaning of “full employment.”
LO2. Compare the major types of unemployment.
LO1. Describe how unemployment is measured.
11. According to the News on page 106, do per capita GDP data overstate or understate the rise in U.S. well-being since 1990?
10. On the accompanying graph, illustrate (A) nominal per capita GDP and (B) real per capita GDP for each year. (The necessary data appear on the endpapers of this book.)(a) By what percent did
9. According to the data in Table 5.3 what is(a) Real GDP in 2006, at prices of 2005?(b) Real GDP in 2005, at prices of 2006?
8. Suppose all the dollar values in Problem 4 were in 2000 dollars. Use the Consumer Price Index shown on the end cover of this book to convert the numbers to 2008 dollars. What is the value of that
7. (a) Compute real GDP for 2005 using average prices of 1995 as the base year. (On the inside covers of this book you’ll find data for GDP and the GDP “price deflator” used to measure
6. What share of total income consists of(a) Wages and salaries(b) Corporate profits( Note: See Table 5.5 for data)
5. What is the value of net investment in Problem 4?
4. (a) Calculate national income from the following figures:Consumption $200 billion Depreciation 20 Retained earnings 12 Gross investment 30 Imports 40 Exports 50 Net foreign factor income 10
3. What was real per capita GDP in 1933 measured in 2006 prices? (Use the data in Table 5.4 to compute your answer.)
2. If real GDP increases by 3 percent next year and the price level goes up by 2 percent, what will happen to nominal GDP?
1. Suppose that furniture production encompasses the following stages:Stage 1: Trees sold to lumber company $ 800 Stage 2: Lumber sold to furniture company $1,500 Stage 3: Furniture company sells
10. Are you better off today than a year ago? How do you measure the change? LO1
9. Over 4 million Web sites sell a combined $70 billion of pornography a year. Should these sales be included in(a) GDP and (b) an index of social welfare? LO1
8. Is the Fordham Index of Social Health, discussed in the News on page 106, a better barometer of well-being than GDP? What are its relative advantages or disadvantages? LO1
7. How might the quality of life be adversely affected by an increase in GDP? Cite specific examples. LO1
1. The manuscript for this book was typed for free by a friend. Had I hired a secretary to do the same job, GDP would have been higher, even though the amount of output would have been identical. Why
LO3. Distinguish the major submeasures of output and income.
LO2. Explain why aggregate income equals aggregate output.
LO1. Identify what GDP measures—and what it doesn’t.
10. According to the News on page 78, what percent of income is spent on lottery tickets by(a) A poor family with income of $18,000 per year?(b) An affluent family with income of $40,000 per year?
9. Suppose the following data represent the prices that each of three consumers is willing to pay for snowplowing:Quantity Consumer A Consumer B Consumer C 1 $50 $40 $30 2 30 20 20 3 20 15 10(a)

Showing 1400 - 1500 of 1763

First
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved