Macro Economics
1. Developing a model of an economy means answering the question(s) of:
a. what to produce.
b. how to produce.
c. for whom to produce.
d. what to produce, how to produce and for whom to produce.
e. Only what to produce and how to produce, since distribution is not the task of economics.
2. Every year during the holidays there seems to be a great demand for some particular "hot" toy. This is an example of the effect of _________ on demand.
a. tastes and preferences
b. expectations
c. income
d. prices of other goods
e. wealth
3. A market is in equilibrium when there is:
a. excess demand.
b. excess supply.
c. a shortage.
d. a surplus.
e. None of the above.
4. The equilibrium quantity in a market could remain unchanged if there were a/an _________ in demand offset by a/an ________ in supply.
a. increase, decrease
b. increase, increase
c. decrease, decrease
d. None of the above.
5. Which of the following is microeconomics?
a. A study of national output growth in Japan.
b. A study of IBM sales since 1995.
c. A study of Irish employment levels.
d. A study of unemployment in Sweden.
e. None of the above can be considered microeconomics.
6. Which of the following would NOT cause the demand for a normal good or service to decrease?
a. An increase in the price of the product.
b. The income available to the household decreases.
c. Other goods which are good substitutes become available.
d. Households have negative expectations about future income, wealth and prices.
e. None of the above. All of the above would cause a decrease in demand.
7. Refer to Figure 4.1. Which panel best depicts the following situation: I do not buy Cola Cola at the supermarket because another brand is on sale.
a. panel 1
b. panel 5
c. panel 6
d. panel 7
e. panel 8
8. If there were an increase in the price of hamburger,
a. the quantity demanded of hamburger would decrease.
b. the demand for catsup would decrease.
c. the demand for hamburger rolls would decrease.
d. All of the above.
e. None of the above.
9. The conventional bowed-out shape of the production possibilities curve implies
a. producers are unable to utilize specialized resources efficiently.
b. shifting production from one good to another leads to increasing opportunity costs.
c.
The Island of Mocha in the video is an example of a traditional economic system evolving into a market system. Every person plays a key role in this traditional system. They had fisherman, coconut collector, melon seller, lumberman, barber, doctor, preacher, brownies seller, and a chief. The Mochans got sick of trading goods all across the island just to get the things that they want or needed. The Chief decided that they would use clam shell for currency instead of trading.
Every society should answer three economic questions, which are what to produce? , how to produce? , for whom to produce? The reason why a society should choose what to produce is because a product of one society’s choice is not necessarily the choice of the other choice. A society should decide how to produce goods, it is due to the fact that not all societies have the same resources, some societies may have a lot of people in them so, if they want to produce a good, they can use their human resources to accomplished their task, in the other hand societies with a low populations but a high amount of machines, can use their resources to finish their task. Some countries may be able to provide items that other countries can not, because their economy is better than those countries.
...ic growth, modest inflation, reduction in government debt and a manageable external position. However growth may slow down in 2004 with low growth in the US economy, the source of 87% of export revenues. There have been many negative Political developments such as corruption within the Dominican Republic however the current president Mejia is taking positive steps to eradicate this widespread corruption. The indicators of welfare in the Dominican Republic have improved significantly over recent years, however the economic developments have not sufficiently trickled down to the poorest segments of the population. In conclusion it is clear from the findings of the report that development is not completely stable within the Dominican Republic. It is relatively well developed compared to the other Caribbean countries however as we have seen, figures can be deceptive.
In 1835 he began to sell short stories to magazines and became the editor of the Southern Literary Messenger in Richmond. His brother Leonard Poe was a poet before his death, and Poe was thought as being morbid and mysterious. Humiliated with the fact of poverty, he moved back to Richmond and from being broke and alone there, he moved to Baltimore. The first night he was back in Baltimore he was robbed by his cousin. He made several calls to people to find a place to stay, and the only person who took him in was his Aunt Maria Clemm. From his aunt Maria, he was introduced to his younger cousin Virginia. Poe who was around the age of twenty seven married his cousin Virginia who was the short age of twelve. They loved each other so much that they wrote one another poems to exchange their love, and sang together every night before bed. In 1846, Poe moved to New York to continue his writing but was shortl...
Poe's life started tragically, when his father deserted his family and his mother died of tuberculosis (Bloom 1999). The death of his mother could have influenced some of his darker themes in his poems about death .He lived his childhood with a foster family who paid for his education (Bloom 1999). He went to a University for a while until he got into trouble. He had a gambling issue that latter put him into great debt; his foster father refused to pay for (Bloom 1999). Poe put his soul into writing and he used his personal experiences through out life. As one reads his love poems, they feel Poe’s distress and anguish over his lost loved one. Poe had a wife named Virginia that he cared for deep...
The Dominican Republic is a nation located in the Caribbean Sea and shares the land with Haiti, and the whole island is called Hispaniola as it was named when Christopher Columbus discovered it during his first voyage in the year 1492. The country has proved to be one of the leading Caribbean countries with accessible healthcare to its citizens and even expats. However, the country has a multinational population with low-to-medium incomes and multi-level access to healthcare based on income. Despite this, improvements to healthcare system can lead to better medical outcomes to all the citizens and even to the suffering citizens of the Haiti. Because the Dominican Republic is an immediate neighbor to struggling Haiti, it is the moral obligation of the Dominican to provide Haitians with access to healthcare.
As written by the Academy of American Poets, Poe began losing loved ones at the very young age of three. By this age, both of his parents who were actors at the time have died, thus leaving him to have to find another family. Afterwards, he moved to Richmond, Virginia to live with his new family Frances and John Allan. Edgar was sent to University of Virginia by his new father, John Allan, and excelled academically. Within less than a year, Poe lacked the funds from his father needed for his education, so he t...
d.) The restaurant buys a computer system for taking phone orders> demand for employees would increase because the ease of purchasing pizzas increases, therefore, increasing demand for the product.
In this report, I will be distinguishing Demand and Quantity Demanded by stating the differences between both terminologies. By referring to the textbook which we are using throughout our course plus resources from the internet, I have been able to collect some information about the definitions of demand and quantity demanded. The factors which affect the movement along the curve and shifting of the curve have been stated in the following pages in this report. Demand and Quantity Demanded are different in terminologies and also literally. The demand and quantity demanded curve has differences and it can be seen in the figures which I had pasted below.
Understanding the economics of our time, we have to first differentiate between the two. With Macroeconomics, the government can regulate the buying and selling of products, foreign or domestic. With Microeconomics we can also regulate the buying and selling of products, within the confines of the companies that produce the items we use on a daily basis.
As with all markets and their respective economies, having equilibrium is one of the key factors of a successful system. Although most markets do not reach equilibrium, they attempt at getting close. There are numerous methods devised to reach equilibrium, whether they involve human intervention directly or a cumulative decision by all factors involved. These factors may be a seller's willingness to lower overall revenue, or a buyer's willingness to withhold some demand for a certain product. Of course, the basics of supply and demand retrospectively control the equilibrium in the market.
It is the role of every government to safeguard its people in all matters including controlling the economy. Every economy faces different challenges including the business cycles that may emanate from the global market. In this paper we try to examine measures taken by the UK’s coalition government in trying to ensure that the economy benefits every citizen and reduces the overall burden to it. We consider the recent comprehensive review on spending.
Distinguish clearly between the Income and the Substitution Effects of a change in the Price of a Good. Under what Conditions will the Income Effect and the Substitution Effect act in Opposite Directions?
deal with “luxury” goods (Exhibit N). It is important to note that the sale of “luxury” goods is affected more
The macroeconomic environment is a dynamic environment, which could not remain unchanged (Gajewsky 2015). There are many factors influence the global macroeconomic environment, such as interest rate, exchange rate, GDP，aggregate demand, monetary policy and other macroeconomic variable (Oxelheim and Wihlborg 2008). These factors are closely associated with commodity price.