Describe the circular flow model of the free-market system. In a free-market system houses and businesses use the market to exchange currency and goods. Businesses produce goods for households, people in households pay businesses when purchasing their products, businesses pay households for labor and land, businesses get more land, and laborers
Chapter 5: Economics of Information Basic economic models assume that all parties have “perfect information.” How does “informational asymmetry” undermine our market economy?
| | 7 INCORRECT | | Answer the next question on the basis of the following production possibilities tables for countries Alpha and Beta:
____ 1. Labor markets are different from most other markets because labor demand is a. represented by a vertical line on a supply-demand diagram. b. represented by an upward-sloping line on a supply-demand diagram. c. such an elusive concept. d. derived. ____ 2. How much of the income in the United States is in the form of wages and fringe benefits?
Question Results Question 1: In our macro Circular Flow, the Businesses are choosing to borrow _____________ billion dollars. Your Answer(s): * 5000 Correct Answer(s) (in green): * 5000 * 3500 * 1000 * 500 Question 2: In the Private Sector, there are many choices to be made by Business managers regarding which “projects” to borrow for and which “projects” to invest in. These choices often contain a great deal of ______________________ as well as the potential for benefits (profits).
A corporate form of business enterprise has the following advantages: Legal framework A corporate business enterprise is established under a specific legal framework where laws governing the operations and functioning of the enterprise are outlined. The activities of the enterprise are monitored and therefore such an enterprise is recognized by law. This is important due to the fact that legal suits can be filed by the enterprise within the provisions of the law.
Question 1 (Essay Worth 15 points) Exchange Rates | Year | U.S. Dollar | South Korean Won | Malaysian Ringgits | Indonesian Rupiahs | 2008 | 1 | 9,046 | 3.49 | 9,022 | 2009 | 1 | 9,046 | 3.78 | 9,087 | 2010 | 1 | 8,995 | 3.65 | 9,144 | a. Given the change in the value of the dollar between 2008 and 2009, as indicated in the table above, describe the effects this will have on United States tourism in each of these countries.
C) There are opportunity costs involved when scarce resources are used up for free lunches
A) good A is used to produce good B. B) good B is used to produce good A. C) goods A and B are substitutes. D) goods A and B are complements. E) none of the above Answer: Scenario 2.1: The demand for books is: Qd = 120 - P The supply of books is: Qs = 5P II-7 15) Refer to Scenario 2.1. What is the equilibrium price of books? A) 5 B) 10 C) 15 D) 20 E) none of the above Answer: II-8 16) Refer to Scenario 2.1. What is the equilibrium quantity of books sold? A) 25 B) 50 C) 75 D) 100 E) none of the above Answer: III-1 17) The slope of an indifference curve reveals: A) that preferences are complete. B) the marginal rate of substitution of one good for another good. C) the ratio of market prices. D) that preferences are transitive. E) none of the above Answer: III-2 18) In what ways can economists help auto manufacturers estimate the marginal rate of substitution between features such as vehicle interior size and acceleration?
Economics 247 Assignment 1 Version A This assignment has a maximum total of 100 marks and is worth 10% of your total grade for this course. You should complete it after completing your course work for Units 1 through 5. Answer each question clearly and concisely.
Assessment task 1 1. SteamScot face a ‘basic economic problem’ what is this ‘problem’ and what is the opportunity cost of the replace and repair programme?
. Through the process of reading, I learned many things about the economy. First of all, I learned that it is a much more difficult decision to come to in regards of how much government involvement in the nation’s economy is enough, how much is too little, and how much is not enough. I also learned that trying to keep the economy stable and productive is a constant and difficult struggle, and that it is often difficult to even know what needs to or can be done in order to stabilize it. While I find economics to be somewhat boring (I am a music major and largely emotionally driven, which means that my entertainment is usually emotionally involving somehow), I actually enjoyed how Wheelan explained economics in this book. While I would not read it for fun, reading this book as an assignment was not painful.