Tag: Economics – Others

How does the automatic adjustment mechanism move the economy to potential real gross domestic product (GDP) in the long run when current real GDP is above potential GDP?

Question 13 (Mandatory) (4 points) The lowering of trade and investment barriers creates fewer opportunities for companies to have the world as their market. True False

Using your labour demand equations from question 2 and the labour market clearing condition for the home economy, find expressions for L1 and L2 in terms of (A1,A2,p1)

Distinguish between positive and normative statements and provide an example of each.
A
statement is a statement about what is.
A
statement is about what ought to be.

What effect might a rise in stock prices have on consumers’ decisions to spend?
A rise in stock prices will generally lead to more consumer spending.

A developing economy is characterized as
technically developed.
a heavily agrarian economy.
having a fair distribution of income.
more politically active.

Given cost and price (demand) functions C(q)=120q+45,400 and p(q)=-2.7q+800, how many items must the company produce to earn $50,000 in revenue?It must produce items.

What made the so-called “Progressive Era” different, was that it was the first and only time in American history when significant reform efforts were made. True or false?
True
False

Adam consumes two goods: housing and food. Suppose we are given Adam’s marginal utility of housing and his marginal utility of food at the basket her currently consumes.

In a profit maximizing farm production problem (e.g. the ‘three crop model’ from module 2), what type of constraint is a limit of planting 400 acres of row-crop land?