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 Study Help New

Search
Sign In
Register

study help
business
principles of economics

Questions and Answers of Principles Of Economics

A person who consumes wine and cheese gets a rise, so his income increases from €3,000 to €4,000.Use diagrams to show what happens if both wine and cheese are normal goods. Now show what happens
Show a consumer’s budget constraint and indifference curves for wine and cheese. Show the optimal consumption choice. If the price of wine is €3 a glass and the price of cheese is €6 a kilo,
Pick a point on an indifference curve for wine and cheese and show the marginal rate of substitution.What does the marginal rate of substitution tell us?
Draw a consumer’s indifference curves for wine and cheese. Describe and explain four properties of these indifference curves.
A consumer has income of €3,000. Wine is priced at€3 a glass and cheese is priced at €6 a kilo. Draw the consumer’s budget constraint. What is the slope of this budget constraint?
What are the main assumptions of the standard economic model?
Explain why the following might be true: a drought around the world raises the total revenue that farmers receive from the sale of grain, but a drought only in France reduces the total revenue that
Suppose that there is severe flooding in a region in which there is a high concentration of wheat farmers.a. Farmers whose crops were destroyed by the floods were much worse off, but farmers whose
Many governments impose a duty (tax) on petrol. Why do you think governments choose to tax petrol?
per cent, by how much should it increase the price?b. If the government permanently increases the price of cigarettes, will the policy have a larger effect on smoking one year from now or five years
Consider public policy aimed at smoking.a. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a packet of cigarettes is currently priced at €6 and the government
Karen receives an energy bill and on looking through it notes that she is charged a different rate for gas and electricity during the day compared to the night time.Explain to Karen the likely reason
8 12a. Use the midpoint method to calculate your price elasticity of demand as the price of DVDs increases from €8 to €10 if (i) your income is €10,000, and(ii) your income is €12,000.b.
16 20
24 30
32 45
40 50
Suppose that your demand schedule (per year) for DVDs is as follows:Price (€)Quantity demanded(income = €10,000)Quantity demanded(income = €12,000)
1,800 400a. As the price of tickets rises from €200 to €250, what is the price elasticity of demand for (i) business travellers and (ii) holidaymakers? (Use the midpoint method in your
1,900 600
2,000 800
2,100 1,000
Suppose that business travellers and holidaymakers have the following demand for airline tickets from Birmingham to Naples:Price (€)Quantity demanded(business travellers)Quantity
For each of the following pairs of goods, which good would you expect to have more elastic demand and why?a. Required textbooks or mystery novels.b. Downloads of tracks by Jay-Z or downloads of
Because better weather makes farmland more productive, farmland in regions with good weather conditions is more expensive than farmland in regions with bad weather conditions. Over time, however, as
Seafront properties along the south coast of France have an inelastic supply, and cars have an elastic supply.Suppose that a rise in population doubles the demand for both products (that is, the
What do we call a good whose income elasticity is less than 1?
In the very short run, the price elasticity of demand for tobacco products is very low but over the medium term is less so. Explain.
A business person reads that the price elasticity of demand for the product they sell is 1.25. If the person wishes to increase revenue should they increase or reduce price? Explain.
What are the main factors that affect the price elasticity of supply? Think of some examples to use to illustrate the factors you cover.
How is the price elasticity of supply calculated?Explain what this measures.
List and explain some of the determinants of the price elasticity of demand. Think of some examples to use to illustrate the factors you cover.
Market research has revealed the following information about the market for chocolate bars: Qd = 1,600 − 300p, and the supply schedule is Qs = 1,400 + 700p. Calculate the equilibrium price and
10,000 30,000a. Draw the demand and supply curves. What is unusual about this supply curve? Why might this be true?b. What are the equilibrium price and quantity of tickets?c. Your team plans to
20,000 30,000
30,000 30,000
40,000 30,000
Suppose that the price of tickets to see your local football team play at home is determined by market forces. Currently, the demand and supply schedules are as follows:Price Quantity demanded
Because bacon and eggs are often eaten together, they are complements.a. We observe that both the equilibrium price of eggs and the equilibrium quantity of bacon have risen.What could be responsible
39 121 Graph the demand and supply curves. What is the equilibrium price and quantity in this market? If the actual price in this market were above the equilibrium price, what would drive the market
53 110
68 98
81 81
104 53
26
The market for pizza has the following demand and supply schedules:Price Quantity demanded Quantity supplied€4
Think about the market for cigars.a. Are cigars substitutes or complements for cigarettes?b. Using a supply and demand diagram, show what happens in the markets for cigars if the tax on cigarettes is
Suppose that in the year 2005 the number of births is temporarily high. How might this baby boom affect the price of baby-sitting services in 2010 and 2020? (Hint:5-year-olds need babysitters,
Using supply and demand diagrams, show the effect of the following events on the market for sweatshirts.a. A drought in Egypt damages the cotton crop.b. The price of leather jackets falls.c. All
Technological advances have reduced the cost of producing mobile phones. How do you think this affected the market for mobile phones? For software used on mobile phones? For landlines?
‘An increase in the demand for mozzarella cheese raises the quantity of mozzarella demanded, but not the quantity supplied.’ Is this statement true or false?Explain.
Explain each of the following statements using supply and demand diagrams.a. When there is a drought in southern Europe, the price of soft fruit rises in supermarkets throughout Europe.b. When a
What are the supply schedule and the supply curve, and how are they related? Why does the supply curve slope upwards?
What are the demand schedule and the demand curve, and how are they related? Why does the demand curve slope downwards?
What is a competitive market? Briefly describe the types of markets other than perfectly competitive markets.
Classify each of the statements in Table 2.1 as positive, normative or ambiguous. Explain.
Classify each of the following statements as positive or normative. Explain.a. Society faces a short-run trade-off between inflation and unemployment.b. A reduction in the rate of growth of money
If models are not capable of representing the real world in any detail and rely too much on assumptions, then what value can they be? In the wake of the financial crisis, there has been much
A politician makes a speech in which he criticizes the government’s immigration policy, saying that it is too loose and encourages too many people to enter the country and take jobs away from local
A researcher in a university notices that the price of flights to holiday destinations tends to be much higher outside semester dates. He formulates a theory to explain this phenomenon. Has the
per cent ownership of Pan-European Industrial.
Draw a circular-flow diagram. Identify the parts of the model that correspond to the flow of goods and services and the flow of euros for each of the following activities.a. Sam pays a petrol station
One common assumption in economics is that the products of different firms in the same industry are indistinguishable. For each of the following industries, discuss whether this is a reasonable
Using an example, explain the difference between an endogenous and an exogenous variable.
What is the role of assumptions in economics?
Using an example, explain the difference between inductive and deductive reasoning.
Explain whether each of the following government activities is motivated by a concern about equity or a concern about efficiency. In the case of efficiency, discuss the type of market failure
Your flatmate is a better cook than you are, but you can clean more quickly than your flatmate can. If your flatmate did all of the cooking and you did all of the cleaning, would your household
Assume a social security system in a country provides income for people over the age of 65. If a recipient decides to work and earn some income, the amount he or she receives in social security
Three managers of the van Heerven Coach Company are discussing a possible increase in production. Each suggests a way to make this decision.FIRST MANAGER: We need to decide how many additional
The company that you manage has invested €5 million in developing a new product, but the development is not quite finished. At a recent meeting, your sales people report that the introduction of
per cent interest. What is the opportunity cost of spending the €10,000 now?
You win €10,000 on the EuroMillions lottery draw. You have a choice between spending the money now or putting it away for a year in a bank account that pays
You were planning to spend an evening working at your part-time job, but a friend asks you to go to a night club. What is the true cost of going to the night club?Now suppose that you had been
Describe some of the trade-offs faced by each of the following.a. A family deciding whether to buy a new car.b. A member of the government deciding how much to spend on building a new motorway
• Suppose $10,000 in new dollar bills (never seen before)falls magically from the sky into the hands of Joanna Ferris.What minimum increase and what maximum increase in the money supply may result?
20 Describe the money supply contraction process.
19 Describe the money supply expansion process.
18 How does a bank’s reserve deficiency affect the amount of loans it is likely to extend?
17 The smaller the required reserve ratio is, the larger the simple deposit multiplier is. Do you agree or disagree with this statement. Explain your answer.
16 Give an example that illustrates a change in the composition of the money supply.
15 If Jones, who has a checking account at bank A, withdraws her money, deposits half of it into bank B, and keeps the other half in currency, do reserves in the banking system change? Explain your
14 If Smith, who has a checking account at bank A, withdraws his money and deposits all of it into bank B, do reserves in the banking system change? Explain your answer.
e. Reserves.
d. Fractional reserve banking.
c. Money market deposit account.
b. Money market mutual fund.
a. Time deposit.
13 Define the following:
12 Why isn’t a credit card money?
11 Can M1 fall as M2 rises? Can M1 rise without M2 rising too? Explain your answers.
10 If you were on an island with ten other people and there was no money, do you think money would emerge on the scene?Why or why not?
9 Money is a means of lowering the transaction costs of making exchanges. Do you agree or disagree? Explain your answer
8 Explain why gold backing is not necessary to give paper money value.
7 Money makes trade easier. Would having a money supply twice as large as it is currently make trade twice as easy?Would having a money supply half its current size make trade half as easy?
6 Some economists have proposed that the Fed move to a 100 percent required reserve ratio. This would make the simple deposit multiplier 1 (1/r 1/1.00 1). Do you think banks would argue for or
5 There would be very few comedians in a barter economy.Do you agree or disagree with this statement? Explain your answer.
4 People in a barter economy came up with the idea of money because they wanted to do something to make society better off. Do you agree or disagree with this statement? Explain your answer.
3 Does inflation, which is an increase in the price level, affect the three functions of money? If so, how?
2 During much of 2007, the value of the dollar declined relative to other currencies (such as the euro, the pound, etc.).How does this affect the three functions of money?

Showing 2800 - 2900 of 5354

First
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Last

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