Macroeconomics

The two parts in this assignment will contribute equally to your grade and will be evaluated separately.

INSTRUCTIONS: you have 1 hour 30 minutes to complete the exam. Write all your answers in the space provided; any work on the back pages will be given zero credit. You can write

I declare that this assignment is my individual work. I have not worked collaboratively nor have I copied from any other student’s work or from any other source except where due acknowledgment is made explicitly in the text, nor has any part been written for me by another person.

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).

1. College logo t-shirts priced at $15 sell at a rate of 25 per week, but when the bookstore marks them down to $10 it finds that it can sell 50 t-shirts per week. What is the price elasticity of demand for the logo t-shirts? Is the demand elastic or inelastic?

7. Which of the following must be true if a firm is experiencing economies of scale?

Sweat stains are the first thing a person would notice about the jackets in the bag. You can see them from far, they are visible like stars in a dark night, a lot of them. Then there is a smell of rusty metals mixed with smell of stinky socks. There, a shine appear and gone in your sight before your brain makes a conscious thought, it was the reflection of light on the blade. The mask was soaking in a dark green tone, of course, it’s mixture of sweat and electric surface of the lame, it is, your honor. You fence.

1. If an economy produces final output worth $5 trillion, then the amount of gross

The paper discusses a number of issues related to the macro economy of the United States of America. The rise of the international trade has completely changed the dynamics of the industry and has affected the overall productivity of the economy of the United States of America. This paper highlights a few key issues in the trade setup of the economy.

Principles of Macroeconomics Homework 1 Please write down your answers as clearly as possible. 1. Below are some data from the land of milk and honey. Year 2008 2009 2010 Price of Milk $1 $1 $2 Quantity of Milk 100 quarts 200 200 Price of Honey $2 $2 $4 Quantity of Honey 50 quarts 100 100

Episode 2: Scarcity and Choice https://www.youtube.com/watch?v=yoVc_S_gd_0 At the beginning of the video Dr. Mary McGlasson says that two things are true about every single person regardless of their race, religion, and even income; which are that everyone has unlimited wants, and that everyone has limited resources, and even if individuals were to satisfy some wants, other wants would arise eventually. Furthermore, she defines scarcity as something that happens when there is not enough resources, or services to satisfy everyone’s wants, at a price zero, and thus price tags come around. With this in mind, she said that a drawback of the system of charging for the scarce resources is that the rich are the one’s capable of acquiring more of those resources, leaving the poor in great disadvantage. Dr. Mary states that if something has a price it’s because that product or good is scarce, however water is an examples of a resource that does not have a deliberate monetary price, yet it is scarce in some places.

21) Huey has eaten two hamburgers and is considering a third. The marginal benefit in his decision is the pleasure from consuming

a) Textbook Definition: “the PPC captures all maximum output possibilities for two (or more) goods, given

Rent-seeking is also used. Rent-seeking is increasing prices so people can make a profit. Government uses laws and rules to gain more money from activities. For example, foreign goods are higher priced so that government can make more money off things, but this also limits competition. This limits competition because not everyone is

International macroeconomics is the study of how nations cooperate through trade of goods and services, through movements of money and by investment based on the idea that resources are less transportable internationally than goods. During the semester, we learned that a primary motivation behind a nation’s participation in international trade is the belief that resources are not circulated equally among all trading nations. International trade is the structure where upon American wealth rests. International trade is the structure upon which American prosperity resides. Free trade policies have produced a level of competition in today 's open market that stimulates recurrent improvement leading to superior products, better-paying