Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 7P
To determine
a)
The mistake in the statement that, Government revenues will always increase with an increase in the taxes.
Concept introduction:
When one variable varies systematically with another variable.
Capacity of one variable to influence other.
Period of economic decline with low production and
To determine
b)
The mistake in the statement that, we should increase the imports in case of recession.
Concept introduction:
When one variable varies systematically with another variable.
Capacity of one variable to influence other.
Period of economic decline with low production and demand.
To determine
c)
The mistake in the statement that, US steel industry and the entire economy is helped by increasing the tariff on imported steel.
Concept introduction:
When one variable varies systematically with another variable.
Capacity of one variable to influence other.
Period of economic decline with low production and demand.
To determine
d)
The mistake in the statement; to reduce the national debt, US government can sell the gold in Fort Knox at $1200 per ounce.
Concept introduction:
When one variable varies systematically with another variable.
Capacity of one variable to influence other.
Period of economic decline with low production and demand.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
1) Suppose the U.S. government wants to stop importing foreign cars. They believe by not importing cars from other
countries they will have absolute advantage in manufacturing cars, and this will help the U.S. economy. Explain what
is wrong with this idea. Use a graph to illustrate your point.
(21)
Carla just started her new job working at the Department of Commerce. In order to see whether Carla “knows her stuff,” her boss asks her to put together a presentation on the current state of the economy. What economic indicators should Carla look at?
Select one:
a. The unemployment rate, business profits, and auto sales.
b. The growth rate of real GDP, employment in the steel industry, and Oil prices.
c. The inflation rate, the unemployment rate, and the growth rate of real GDP.
d. The inflation rate, the unemployment rate in Georgia, and mortage interest rates in Texas.
(22)
Price ceilings typically result in ________.
Select one:
a. shortages
b. price equilibrium
c. excess supply
D6)
How can markets explain the “hockey stick” phenomena?
Select one:
a.
Markets were mostly immature in the early 18th century. They helped the firms to grow easily.
b.
Markets contribute to the economy by increasing the productivity of labour, by allowing people to specialise in the production of goods.
c.
The political and economic conditions in Great Britain helped the markets to grow faster so that GDP per capita increased substantially.
d.
All of the above.
Knowledge Booster
Similar questions
- 1. (a) The following equations describe an economy: C = 100+ 0.75Yd I = 50-25r T = G = 50 Where C is aggregate consumption, Ya is disposable income, I is aggregate investment. T'is taxes, G is government purchases and r is the rate of interest. Derive the IS curve for the economy. Show the area of excess demand and excess supply in the goods market. (b) Draw the graph and explain the derivation of IS curve.arrow_forward4. Macroeconomics is a field of economics which concerns performance, structure, behavior, and decisions of an economy at aggregate levels. There are three key issues in macroeconomics, e.g. output growth, price level and employment. Finish the questions of macroeconomic concepts and issues as following. (1) Consumer Price Index (CPI) is a price indicator to reflect price levels over time. As a key economic indicator, CPI is computed monthly by the Bureau of Labor Statistics (BLS) using a "market basket" purchased by the typical consumer each month. Suppose you are doing a study to yearly price levels (CPI) of a metropolitan area in the US. Its CPI includes three categories, Food (grocery), Energy (gasoline) and other items (all goods and services less food and energy). The table below provides you the prices of the three categories in 2019, 2020 and 2021. Also, you have the units purchased by a typical consumer in these three categories. Use 2019 as the base year, to show step-by-step…arrow_forward6. Normative and positive statements The following table contains statements that provide some analysis of policies that address the financial crisis of 2007-2009. Categorize each statement as positive or normative. Statement The financial crisis was caused by faulty mathematical models that encouraged excessive risk taking. The lack of effective regulation contributed to a risk-seeking culture in the financial services industry. Central banks should have imposed tighter regulations on banks to prevent the financial crisis. Executives of banks that received financial assistance from the government should not have received bonuses. Positive Normative O O O O O OOarrow_forward
- - U.S. aggregate demand and long-run aggregate supply decreased during the Great Recession. This caused real gross domestic product (GDP) to and the price level to decrease; decrease increase; increase decrease; remain unchanged decrease; increase remain unchanged; increasearrow_forward7. In seeking to show that population growth threatens to exhaust the world's agricultural resources, the Worldwatch Institute has pointed out that in 1988, for the first time in its history, the United States ate more food than it grew. (a) By what measure do you suppose the United States ate more food than it grew in 1988? Volume? Weight? Calories? Or monetary value?arrow_forward2 The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s, but eventually this growth slowed. Why did this occur? Capital per hour worked (labor) grew rapidly from 1950 to 1980, but technological change occurred very slowly. Capital per hour worked (labor) grew slowly, but technological change grew very rapidly. Increasing implementation of new technologies eventually suffered diminishing marginal returns. The centrally planned economy invested too heavily in technological change. Consumption goods eventually took priority.arrow_forward
- [Microeconomic theory] Explain in a picture what is meant by Corner Solution? Illustration of haram and halal goods, ice cream and hot coffee during the rainy season.arrow_forward(This is a complete question) Ghana’s government wants to shift from agriculture to manufacturing. To do so, the government plans to implement a policy of import substitution industrialization (ISI). About half of Ghana’s population depends on agriculture, but Ghana still imports some of its food. The majority of Ghana's people live in rural areas and exist on a subsistence way of life. Ghana has one of the highest rates of income inequality in the world. Nearly half of the population is employed in agriculture. Explain import substitution industrialization and how it can affect Ghana. What role does learning by doing play, and when does it make sense for the government to interfere?arrow_forwardNeed help with this question. Please explain each step. Thank you :)arrow_forward
- 6. Microeconomics and macroeconomics Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. A consumer's optimal choice when buying a flat-screen TV The effect of federal government spending on the national unemployment rate The effect of a cigarette tax on the quantity of cigarettes sold Microeconomics Macroeconomics οιοιοarrow_forward36.) What is one example of the changing demographics in Europe? a. the population is aging b. imports and exports are increasing c. many countries have rebuilt their economiesarrow_forward1. Classify the following as microeconomics or macroeconomics and give and provide a justification for your choice by choosing answers from A-F to fit each statement below. ,The effect of rising oil prices on employment in the airline industry. - A comparison of alternative tax policies and their respective impacts on the rate of the nation’s economic growth. - Changes in the nation's unemployment rate over short periods of time. - The effect of changes in the household saving rates on the growth rate of national income. a- Micro. Examining one firm in the economy b- Macro examining one sector in the economy c- Micro, examining one individual/household in the economy d- Macro, examining the entire economy e-Micro examining one firm in the economy f- Micro examining one sector of economy 2. Choose the most appropriate answer to fit the statements. Due to heavy rains the price of ground produces increase a- Compare the cost versus benefits in the making b- Diminishing returns c- People…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
