lalithashwin156

When a person drives an automobile, that individual is creating

a. external costs only.

b. social costs.

c. private costs only because the individual pays for the insurance, gas etc.

d. internal costs only.

Describe the chain of events leading to exchange rate determination for the following cases:

(a) An increase in U.S. money supply

(d) Increase in growth rate of U.S. money supply

(c) Increase in world relative demand for U.S. products

(d) Increase in relative U.S. output supply

Which of the following is a reason for executive privilege?

a. Because the Presidency is such a hard job, they need certain privileges to make it bearable.

b. Presidents need executive privilege as a way of rewarding their friends and political allies.

c. Executive privilege is a way that Presidents can hide their mistakes and avoid getting blamed when things go wrong.

d. When the President gets advice from people about what to do, those people need to feel that they can speak freely, even if what they have to say might be unpopular, without fear that people will find out. Also, Presidents need to be able to discuss political strategy without their opponents finding out what it is.

The growth in White House staff:

a. Has exposed the president to a wider array of political interests and policy choices.

b. Means that, more and more, presidents are shielded from political reality outside the White House, surrounded by people with a kind of "bunker mentality."

c. Has been a complete blessing for modern presidents.

d. Hillary Clinton won huge majorities in a few big states, but lost a few important states by very small margins.

How might Donald Trump be removed from office (before the next election)?

a. He can be impeached and removed by Congress. It requires a majority vote in the House to impeach him, and then a trial in the Senate. If 2/3 of the Senators vote to convict him, he is removed.

b. The House of Representatives can call for a new election.

c. If the Supreme Court finds that a foreign government, like Russia, interfered with the election, they can call a new election to take place within 6 months.

d. If he is found guilty of high crimes and misdemeanors by a court of law, he will be removed.

PLEASE ANSWER ALL

When a country removes trade barriers and imports appliances and exports engineering services,

A) Its growth slows.

B) Its productivity decreases.

C) It is essentially transforming engineering services into appliances.

D) Its economic well-being decreases while that of the country that sells appliances increases.

Using "IS-LM revisiting models", make an analysis regarding the effect of the nominal interest rate and the real interest rate on the economy:

A. In the medium term

B. The connection with Fisher Effect

If a policy change causes a Pareto improvement, is the outcome necessarily Pareto efficient?

If a situation is Pareto efficient, are Pareto improvements possible?

If a change occurs that causes a Pareto efficient outcome, is the change necessarily a Pareto improvement? Please explain.

1. In small economies, an increase in the import tariff will always

A Increase domestic consumption of the good

B Decrease domestic consumption of the good

C Decrease domestic output of the good

D Decrease the world price of the good

E Increase welfare

2. True or False : an export subsidy raises the price domestic consumers pay

A True

B False

3. True or False : Home’s tariffs on Foreign products increase the value of Home's currency

A True

B False

4. True or False : In the US, when asked, skilled workers are more likely than unskilled workers to espouse protectionist positions

A True

B False

5. More concentrated industries are more likely to get trade protections because

A Industry concentration plays a roll in national defence

B More concentrated industries are easier to organize for lobbying purposes

C Industries that are more concentrated are also more sensitive to trade shocks

D There is no connection between industry concentration and trade protection

True or False: Indicate whether each of the following statements is true or false and explain why.

1. If the government gives a subsidy of $5 for each unit of output produced to firms in a competive industry, output will increase and deadweight loss will increase.

2.Education is not an example of a public good.

Indicate the statement is true or false and explain why.

1. If the government gives a subsidy of $5 for each unit of output produced to firms in a competive industry, output will increase and deadweight loss will increase.

2. Common property problems which have led to the near extinction of whales are easily solved by government intervention.

3.Firms in monopolistic competition must earn zero economic profits in the long run.

The forces that can combine to create high rivalry within an industry include all of the following except: a. numerous competitors. b. high fixed costs. c. fast industry growth. d. low switching costs for buyers.

1. The prices achieved by common-value auctions lend to increase as more information is provided to buyers.

a. True

b. False

Which of the following factor does NOT contribute to higher rivalry in a market?

A. Low switching costs for buyers
B. Fast growth in the market
C. High fixed costs

D. Large number of competitors

An economy has a recessionary gap.

With no change in aggregate​ demand, how does the economy return to full​ employment?

A.

The money wage rate​ rises, real GDP​ increases, and the price level falls.

B.

The money wage rate​ rises, real GDP​ decreases, and the price level rises.

C.

The money wage rate​ falls, aggregate supply​ increases, and the price level falls.

D.

The money wage rate​ falls, real GDP​ increases, and the price level rises.

6) The real wage will rise if the nominal wage

A. falls more rapidly than the general price level
B. increases at the same rate as labor productivity
C. increases more rapidly than the general price level
D. falls at the same rate as the general price level

The real wage will rise if the nominal wage

A. falls more rapidly than the general price level.
B. increases at the same rate as labor productivity.
C. increases more rapidly than the general price level.
D. falls at the same rate as the general price level.

Which of the following observations would be consistent with the imposition of a binding price ceiling on a market? After the price ceiling becomes effective.

a)a smaller quantity of the good is bought and sold.
b)a smaller quantity of the good is demanded.
c)a larger quantity of the good is supplied.
d)the price rises above the previous equilibrium.

1. Which of the following observations would be consistent with a price floor in a market?

A. A smaller quantity of the good is bought and sold after the price floor becomes effective than before the price floor became effective.
B. A smaller quantity of the good is demanded after the price floor becomes effective than before the price floor became effective.
C. A larger quantity of the good is supplied after the price floor becomes effective than before the price floor became effective.
D. All of the other choices are correct.

2. If the Fed lowers the federal funds rate, which of the following occurs?

A. Investment increases.
B. Consumption expenditure decreases.
C. The price of the dollar on the foreign exchange market increases.
D. Government expenditure on goods and services increases.
E. Net exports decrease.

3. Gross domestic product is equal to the market value of all the final goods and services ________ in a given period of time.

(I think it's B?)
A. produced and consumed within a country
B. produced within a country
C. consumed by the citizens of a country
D. consumed within a country
E. produced by the citizens of a country

4. Investment is defined as the purchase of

A. the purchase of new capital goods but not additions to inventories.
B. financial assets and inventories only.
C. additions to inventories only.
D. the purchase of new capital goods and additions to inventories.
E. any financial asset only.

5. When the CPI rises ________, the inflation rate is ________.

A. rapidly; low
B. slowly; high
C. rapidly; either high, low, or zero depending on whether production of output is increasing, decreasing, or not changing.
D. steadily; zero
E. rapidly; high

6. U.S. net exports include

A. sales of Hollywood movies to the rest of the world.
B. the production of Ford Mustangs in China that are sold in China.
C. the sale of shares of Nike stock on the New York Stock Exchange.
D. Honda automobiles produced and sold in Japan.
E. the sale of U.S. government securities to U.S. citizens.

7. If the CPI this year is 240 and the CPI in the previous year was 200, what is the annual inflation rate?

A. 40.0 percent
B. 20.0 percent
C. 16.7 percent
D. -16.7 percent
E. 50 percent

Which of the following is the best example of a perfectly competitive market?

Which of the following is an example of a stock variable?

During the 1990s and the first decade of the 2000s

"Output fell 2 percent last quarter" is an example of a positive economic statement.

If we included intermediate goods in the calculation of GDP,

Identify which of the following questions is NOT a microeconomic question.

A. Why are the fish stocks in the Atlantic ocean being depleted?

B. Why are libraries funded by the government?

C. Why is internation trade increasing?

D. Why do athletes earn more than checkout clerks?

U.S. exports of goods and services (on a national income account basis) are about?

20 percent of U.S. GDP.

8 percent of U.S. GDP.

28 percent of U.S. GDP.

13 percent of U.S. GDP.

A dressmaker can sew 1,300 garments with 200 bolts of fabric and 2,300 hours of labor. Another dressmaker can sew 1,300 garments with 100 bolts of fabric and 3,000 hours of identical labor. Fabric costs $110 a bolt and labor costs $30 an hour.

a. Is it possible for both methods to be technically efficient? Why or why not?

b. Is it possible for both methods to be economically efficient? Why or why not?

One farmer can grow 1,500 bushels of corn on 2 acre of land with 300 hours of labor and 25 pounds of seed. Another farmer can grow 1,500 bushels of corn on 1 acre of land with 200 hours of labor and 25 pounds of seed.


1. Could both methods be technically efficient?
A.Technical efficiency cannot be compared in this instance.
B. Because the second farmer can produce the same amount of corn with fewer inputs, both methods cannot be technically efficient.
C. Both of these methods are technically efficient; many different production processes can be technically efficient.

2.Is it possible that both of these production processes are economically efficient?
A. Both could be economically efficient; the answer depends on the price of corn.
B. It is not possible for both to be economically efficient because the first farmer uses more total inputs than the second farmer.
C. It is not possible for both to be economically efficient because the first farmer is more technically efficient than the second farmer.
D. Both could be economically efficient; the answer depends on the cost of each input.

In the marketforrewritable DVDs, explain whether the following events wouldcause anincrease or a decrease in demand or an increase ordecrease in thequantity demanded. Also explain what happensto the equilibriumquantity and the market clearing price.

1. A booming economy increases the income of the typical buyerofrewritable DVDs.
2. Consumers of rewritable DVDs anticipate that the price ofthisgood will decline I the future.

In the market for rewritable DVDs, explain whether the following events would cause an increase or a decrease in demand or an increase or decrease in the quantity demanded. Also, explain what happens to the equilibrium quantity and the market-clearing price.

1. A booming economy increases the income of the typical buyer of rewritable DVDs.
2. Consumers of rewritable DVDs anticipate that the price of this goodwill decline in the future.

. Inthe market forrewritable DVDs, explain whether the followingevents would cause anincrease or a decrease in demand or anincrease or decrease in thequantity demanded. Also explainwhat happens to the equilibriumquantity and the market clearingprice.

1. There are increases in the process of storage racks andtheboxes for rewritable DVDs.
2. There is a decrease in the price of computer drives thatreadthe information contained o rewritable DVDs.
3. There is a dramatic increase in the price of flash memorydrivesthat can be used to store digital data.

In the market for flash memory drives ( a normal good,) explain whether the following events would cause an increase or a decrease in demand or an increase or a decrease in the quantity demanded. Also explain what happens to the equilibrium quantity and the market clearing price.

A) There are increased in the prices of shortage racks and boxes for flash memory drives.

B) There is a decrease in the price of computer drives that read the information contained flash memory drives.

C) There is a dramatic increase in the price of secure digital cards that, like flash memory drives, can be used to store digital data.

D) A booming economy increases the income of the typical buyer of flash memory drives.

E) Consumers of flash memory drives anticipate that the price of this good will decline in the future

In the market for rewritable DVDs, explain whether thefollowingevents would cause an increase or a decrease in demand oranincrease or decrease in the quantity demanded. Also explainwhathappens to the equilibrium quantity and the marketclearingprice.

1. There is a dramatic increase in the price of flash memorydrivesthat can be used to store digital data.
2. A booming economy increase the income of the typical buyerofrewritable DVDs.

In the market for flash memory drives (a normal good), explain whether the following events would cause an increase or a decrease in demand or an increase or decrease in the quantity demanded. Also, explain what happens to the equilibrium quantity and the market-clearing price.

a) There are increases in the prices of storage racks and boxes for flash memory drives.
b) There is a decrease in the price of computer drives that read the information contained on flash memory drives.
c) There is a dramatic increase in the price of secure digital cards that, like flash memory drives, can be used to store digital data.
d) A booming economy increases the income of the typical buyer of flash memory drives.
e) Consumers of flash memory drives anticipate that the price of this good will decline in the future.

Problem 2

In the market for printer ink (a normal good), EXPLAIN whether the following events would cause an increase or a decrease in demand or an increase or a decrease in the quantity demanded. (See page 58).

1. There are increases in the prices of inkjet printers.

2. There are decrease in the prices of inkjet printers.

3. A booming economy increases the income of the typical buyer of printer ink.

4. There are increases in the price of printer ink.

. In the market for rewritable DVDs, explain whether the following events would cause an increase or a decrease in demand or an increase or decrease in the quantity demanded. Also, explain what happens to the equilibrium quantity and the market-clearing price.

1. There are increases in the process of storage racks and the boxes for rewritable DVDs.
2. There is a decrease in the price of computer drives that read the information contained o rewritable DVDs.
3. There is a dramatic increase in the price of flash memory drives that can be used to store digital data.

(Hint: : what risks stay with the insurer; where it belongs; and which fall on the provider.)

a. Fee-for-service

b. Capitation

c. Diagnosis related group (DRG)

Basis of hospital compensation in the United States: a or b

a. fee for service

b. DRG-type

Basis of physician compensation in the United States and United Kingdom:

a.) Fee for service

b.) Capitation

c.) Salary

Which of the following government policies is MOST necessary for the Theory of Comparative Advantage to have a positive effect on economic growth?

Which of the following is an example of an institution that promotes economic growth?

• high barriers to international trade
• bartering as a means of trade
• private property rights
• constant war and conflict
• collective property ownership

Which one of the following is a key to economic development?

Why does inflation make nominal GDP a poor measure of the increase in total production from one year to the next?

Why does inflation make nominal GDP a poor measure of the increase in total production?