Category: Economics

From January 1, 2017 until November 5, 2017 there were 307 mass shootings in the United States. Donald Trump blamed the slayings on terrorists from abroad and persons:

As the concentration ratio falls in a market after a new firm enacts a very successful marketing campaign, what should happen to the prices and competition in the market?

➤ How does an open market purchase affect the federal funds rate?
An open market purchase increases reserve supply and typically lowers the federal funds rate. With more excess reserves, banks lend overnight at lower cost. The Fed uses these operations to move the funds rate toward its target and can adjust purchases to maintain its policy rate.

The main suppliers of loanable funds are:Question 6Answera.Governments and municipalitiesb.Households and saversc.Financial intermediariesd.Corporations seeking expansion

➤ Why would both countries gain from trade if one is absolutely better at everything?
Both countries gain when each specializes in the good with lower opportunity cost and trades at a price between their opportunity costs. In the example, A specializes in cloth and B in wheat. If they trade at, say, 1 cloth for 2.5 wheat, both obtain the other good cheaper than producing it, increasing consumption possibilities.

➤ When will a country see measurable gains from R&D and innovation policies?
Returns often appear over medium to long horizons. Basic research and deep institutional reforms typically show benefits within a decade or more. Applied R&D and targeted adoption programs can deliver measurable productivity gains within five years, especially when institutions are strong and firms have the capacity to implement new technologies.

True, False, Uncertain. If profits are defined as the revenue less costs and revenue is zero then maximizing profits is the same thing as maximizing the negative of costs.