Macroeconomics: Private and Public Choice
15th Edition
ISBN: 9781305176799
Author: Gwartney
Publisher: Cengage
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Chapter 5, Problem 6CQ
To determine
Explain the reason for protection which is important to the efficient operation of an economy.
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Macroeconomics: Private and Public Choice
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- How is it that the problem of who to produce for is resolved in the capitalist system?arrow_forwardA fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they don't like the taste. From an economic perspective, the company should keep the hamburger on the menu because they've spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.arrow_forwardWhat are the characteristics of law?arrow_forward
- List the two branches of economics.arrow_forwardWhat are the fundamental problems and issues facing an economy in general?arrow_forwardAccording to the invisible hand concept, the best way for a society to encourage the creation of jobs and the production of the products most wanted by consumers would be to: A) Permit government owned industries, such as telecommunications, transportation, and energy, and operate these firms as nonprofit organizations. B) Allow private ownership of businesses, but make use of extensive regulation to force businesses to behave in a socially desirable way. C) Allow entrepreneurs personal freedom to follow their own self-interest. D) Impose high taxes on individuals, and use the revenue to subsidize businesses to encourage them to produce the maximum rate of output.arrow_forward
- Economics affects nearly everything we do in some way. Someone else has produced most items we consume, or use, in our daily lives, from food to clothes to music to gas for our cars. Chances are, when we purchase these daily items, we don't question the price with the producer. But in the United States, the interactions between the consumers and producers determine quite a lot in terms of business and economics. Think about the items and services that you and your family buy or consume. What causes you to pay the prices that you do for these goods and services? What determines the price that's on the price tag? What goes into determining, or setting, that price? Consider all the possible elements that could influence the prices you pay.arrow_forwardPlease use the graph to answer the given questions. Assume the people act rationally. Which of the statements best describes a situation represented by point A? Look at the image to solve for this Jeff agrees to lend money to his brother, who plans to use the funds to open a shoe store. Wayne projects that if he takes out a loan to open another gym franchise, he will earn a lower return than the interest rate he would have to pay, so he decides against it. Janine predicts that, if she borrows to expand operations, she will earn a rate of profit higher than the interest rate of the loan. So, she decides to take out the loan. Carly decides against purchasing a corporate bond because she has another investment opportunity that returns 17%. Given the market conditions, what will be the prevailing interest rate? 18% 2% 17% 10% 6% Given the market conditions, how much will be available in loanable funds? $90 billion $50 billion $30 billion $70…arrow_forwardcan you give me a brief explanation on why this passage is an economic motivator?arrow_forward
- A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they dont like the taste. From an economic perspective, the company should keep the hamburger on the menu because they have spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.arrow_forwardA good can be an intermediary good in one case and a final good in another casearrow_forwardDon't use Ai.arrow_forward
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