You are selling your 1996 Mustang. You have already spent $1000 on repairs. At the last minute, the transmission dies. You can pay $600 to have it repaired, or sell the car “as is.” In each of the following scenarios, should you have the transmission repaired? Explain. A. Blue book value (what you could get […]
Macroeconomics Discuss ‘open-market operations’ and ‘discount rate’ as tools used by the central bank of a country to control money supply. Answer in your own words and give a long and good answer
Using Microeconomics to Understand Markets and Predict Changes One reason for studying microeconomics is to better understand how markets work and to predict how various events affect the prices and quantities of products in markets. For example, how would a tax on beer affect: 1. The price of beer? 2. How many people buy beer? […]
Using Macroeconomics to Understand Why Economies Grow The world economy has been growing in recent decades, averaging about 1.5 percent higher per capita income per year.Why do some countries grow much faster than others?
Suppose a firm producing baseball, it is operating in the short run. The price of baseball is $5, the hourly wage is $12, and each baseball requires $1 worth of material. The firm has experimented with different workforces and the results are shown in the first two columns of the following table. 1. Fill in […]
Mohamed produces Toys in the perfectly competitive Toys market. Fill in the missing values in the following table: (5 marks) Suppose the equilibrium price in the Toys market is $30. How many Toys should Mohamed produce? How much profit will he make? (1 mark) If next week the equilibrium price of Toys drops to $15, […]
What is micro economics? Explain briefly about micro economics.
Q1 Consider the market for orange juice. In this market, the supply curve is given by QS = 100PJ −20PO and the demand curve is given by QD = 1000−150PJ +100PC, where J denotes orange juice, O denotes Orange, and C denotes coffee. Assume that PO = 10 and Pc = 8. Calculate the equilibrium […]
Instructions: The assignments should be typed in Word. Diagrams and graphs, however, may be drawn with a pen and a ruler, drawn using Word/Excel, and scanned/pasted/attached to your submission. Problem 1 The demand and supply functions for hockey sticks are represented by the following equations, where Qd is the number of crates of sticks demanded, […]
12.1 Learning Outcomes: Recognize fiscal policy as an important tool of government intervention in a market economy. Recognize monetary policy as an important tool of government intervention in a market economy. Evaluate effects of changes in a tax policy. 12.2 Action Required: Watch the video using the following link: (908) Introduction to inflation | Inflation […]
