Econolands Essay

Answer the next question on the basis of the following production possibilities tables for countries Alpha and Beta:

Macroeconomics is the field of economics that studies the behavior of the economy as a whole not certain parts. Gross National Product (GDP) the economy’s total output; how it is affected by changes in unemployment, national income, rate of growth, and price levels. Macroeconomics encompasses an increase or a decrease in net exports would affect a nation 's capital account. Government’s role in macroeconomics is to keep the economy in equilibrium; taxes and government spending augment the balance to achieve equilibrium in the economy

16) A country's consumption possibilities frontier can be outside its production possibilities frontier if __________.

Sustainability, which in definition mean the capactiy of something to be maintained itself, is a concept that began to pick up traction in the mid-20th century. This

There are four main macroeconomic objectives of the government it wishes to achieve in order to maximise the welfare of the society, they are: low and stable inflation, a favourable current account position on the balance of payments, low unemployment and sustained economic growth.

Q19) In Figure 2, it is _______ for an economy to be at point B.

C) A flatter production possibility curve denotes lower opportunity costs. The Western region has the comparative advantage to produce bowling balls. For each ball produced, their opportunity cost is one-quarter (.25) of one bicycle, versus the Eastern region’s opportunity cost of four bicycles. The Eastern region has the comparative advantage to produce bicycles with the opportunity cost of one-quarter (.25) of one bowling ball for each bike produced. This flatter production possibility curve can be visualized by reversing the data used above in the Eastern region table:

The concepts of macroeconomics help me understand that there are external factors that will affect the end users. For an example, in the simulation, the consumer’s decision making process will be altered based on the property management’s decision to convert some of their apartments to condos. Also, the increase in population and the government mandates will have the effects as well.

The term sustainability conveys to me the idea of something permanent or long term. Most people probably think of sustainability in an environmental context, related to issues such as, global warming, pollution and overpopulation. While the aspect of the environment is of crucial importance I think however, that sustainability needs to be looked at in a broader sense and include factors such as, social, political and economic aspects. According to Laasch and Conway (2015), sustainability is the level to which any state has the ability to sustain the three forms of capital which are social, economic and environmental depending on the conversation’s context, Laasch et al., (2015). Edward Barbier (as cited in Laasch et al., 2015) strongly emphasised the importance of social,

In this way, the Fed manages price inflation in the economy. So bonds affect the U.S. economy by determining interest rates. This affects the amount of liquidity. This determines how easy or difficult it is to buy things on credit, take out loans for cars, houses or education, and expand businesses. In other words, bonds affect everything in the economy. Treasury bonds impact the economy by providing extra spending money for the government and consumers. This is because Treasury bonds are essentially a loan to the government that is usually purchased by domestic consumers. However, for a variety of reasons, foreign governments have been purchasing a larger percentage of Treasury bonds, in effect providing the U.S. government with a loan. This allows the government to spend more, which stimulates the economy. Treasury bonds also help the consumer. When there is a great demand for bonds, it lowers the interest rate.

1) According to the Law of Demand, the demand curve for a good will A) shift leftward when the price of the good increases. B) shift rightward when the price of the good increases. C) slope downward. D) slope upward. Answer: C 2) An increase in the price of pork will lead to A) a movement up along the demand curve. B) a movement down along the demand curve. C) a rightward shift of the demand curve. D) a leftward shift of the demand curve. Answer: A 3) An increase in consumer incomes will lead to A) a rightward shift of the demand curve for plasma TVs. B) a movement upward along the demand curve for plasma TVs. C) a rightward shift of the supply curve for plasma TVs. D) no change of the demand curve for plasma TVs. Answer:

Production Possibility Frontier (PPF) is a graph that shows the potential combinations of goods that an economy is able to produce given available technology and factors of production.

Sustainability is a topic that has become very important in recent years. Sustainability is defined as, “the ability to continue a defined behavior indefinitely.” ("Finding and Resolving the Root Causes of the Sustainability Problem", 2014)

5. Suppose the production possibilities for two countries, A and B, producing two goods, X and Y, are as follows:

Monetary stability also means price stability. Price stability refers to inflation. The government inflation target is 2%. Monetary stability is achieved through the monetary policy, which consists of the process in which the bank controls the money supply and the interest rate with the aim of getting a set of objectives oriented