Economics Questions and Answers

Economics

On a most basic level, business provides a means of income for a population. People need money to not only survive, but to enjoy their lives. In exchange for their labor, businesses give money to...

Latest answer posted December 8, 2020 11:57 am UTC

3 educator answers

Economics

An organization’s span of control can be determined by the number of employees reporting to the manager/ supervisor. A narrow span of control refers to a structure with few employees reporting to...

Latest answer posted September 19, 2016 5:18 pm UTC

3 educator answers

Economics

Perhaps the best way to understand marginal costs, average total costs, and their intersection is to imagine yourself as a business owner. You've invented a new product, the wingding, and a small...

Latest answer posted November 28, 2020 3:06 pm UTC

5 educator answers

Economics

Before discussing the possible advantages and disadvantages of the price system, it should probably be established what a price system is. Generally, a price system refers to an economy in which...

Latest answer posted February 18, 2021 10:26 pm UTC

4 educator answers

Economics

Before getting into why a firm should be a price taker and not a price maker under perfect market conditions, let’s be clear about what the three terms in the question mean. Fortunately, these...

Latest answer posted January 12, 2021 3:00 pm UTC

4 educator answers

Economics

A circular flow model describes how money, resources, and goods (or services) move from households to corporations and back again. On one side of the model, we have the product market. Corporations...

Latest answer posted February 25, 2021 6:16 pm UTC

5 educator answers

Economics

The United States economy has variously been described as "free market," "capitalist," and "mixed." The apparent confusion here is caused partly by the differing terms and approaches of different...

Latest answer posted March 28, 2021 2:10 pm UTC

4 educator answers

Economics

For the purpose of this answer, let’s assume that the employee is choosing between the two jobs and not analyzing each job independently. One benefit of Job A is the higher starting salary....

Latest answer posted April 27, 2020 11:01 pm UTC

3 educator answers

Economics

Marginal cost and marginal benefit are important factors when making economic decisions. Marginal cost is the cost of getting more of something. Marginal benefit is the gain we receive by getting...

Latest answer posted September 25, 2016 4:29 pm UTC

2 educator answers

Economics

Strictly speaking, there is no such thing as a perfectly-competitive market in the real world. The formal definition of perfect competition requires an infinite number of firms with perfect...

Latest answer posted January 21, 2016 8:29 pm UTC

1 educator answer

Economics

The marginal cost curve shows the relationship between the marginal cost of a product and a level of output for that product. When production of a product is in its beginning stage, the marginal...

Latest answer posted January 2, 2018 8:15 pm UTC

3 educator answers

Economics

There is a difference between consumer products and industrial products. Industrial products include the machinery and resources used to make consumer products. Sometimes these products are...

Latest answer posted July 4, 2016 12:44 am UTC

3 educator answers

Economics

Economists identify four primary kinds of market structures: pure competition, monopolistic competition, oligopoly, and monopoly. The market structure in which a business (or set of businesses)...

Latest answer posted April 28, 2021 5:31 pm UTC

4 educator answers

Economics

In order to answer this question, we need to define what opportunity cost is. In a nutshell, opportunity cost refers to the benefits that you have given up by choosing one particular option. In...

Latest answer posted September 8, 2020 10:52 am UTC

4 educator answers

Economics

These are very different kinds of costs. Sunk costs are the costs that you have already incurred. This is the money that you have put into some particular endeavor and which you can not recoup....

Latest answer posted April 15, 2012 2:09 pm UTC

1 educator answer

Economics

Microsoft is in a unique situation. They operate in several different, yet similar (and converging) markets, and have a vast power differential between the markets. In one area, they have almost...

Latest answer posted December 3, 2019 7:03 pm UTC

4 educator answers

Economics

No, there can never be zero opportunity cost for anything that we human beings do in this life. In order to see why this is so, let us first look at the definition of opportunity cost. Our...

Latest answer posted October 30, 2013 9:38 pm UTC

1 educator answer

Economics

It looks like you may be referring to labor or personnel economics in your question. Labor or personnel economics is related to human resources management in terms of wages, human capital...

Latest answer posted March 2, 2017 4:18 pm UTC

2 educator answers

Economics

To best answer this question, let's first look at the definitions of primary and secondary industries. A primary industry involves the collection and production of raw materials. For example, a...

Latest answer posted October 31, 2018 12:30 pm UTC

2 educator answers

Economics

There is a difference between functional income distribution and personal income distribution. Personal income distribution focuses on how income is divided among individuals in a country. It...

Latest answer posted October 13, 2016 2:34 am UTC

2 educator answers

Economics

In theory, eliminating the middlemen sounds like a good idea. This would help to lower costs for consumers who could buy products for less and for businesses who could sell their products for less....

Latest answer posted June 26, 2016 4:55 pm UTC

3 educator answers

Economics

Banks primarily act to help control the supply of money in circulation. Economically, the amount of liquid capital in the country is important to determining the strength of an economy. Banks use a...

Latest answer posted July 5, 2019 10:42 am UTC

2 educator answers

Economics

Winston Churchill once famously noted that many "forms of Government have been tried and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed,...

Latest answer posted September 13, 2011 2:01 pm UTC

7 educator answers

Economics

A decrease in tax to GDP ratio of a country indicates: (B) less equitable distribution of national income. Let's consider why this is the correct answer: When income is distributed inequitably...

Latest answer posted May 3, 2017 12:47 am UTC

2 educator answers

Economics

The consensus opinion among the vast majority economists about the government's role in the time of economic crisis is Keynesian—that the federal government is there to prop up the situation by...

Latest answer posted April 6, 2020 12:53 pm UTC

2 educator answers

Economics

Price elasticity of demand is the change in demand of a product based on the increase or decrease of the price of that product. It is of significant importance to the government because it is used...

Latest answer posted February 10, 2020 8:15 pm UTC

4 educator answers

Economics

In economics, the change in consumption is related to the change in income by the marginal propensity to consume. If consumption changes by dY when the income changes by dX, the marginal propensity...

Latest answer posted July 17, 2015 4:29 am UTC

1 educator answer

Economics

There are many factors that can affect consumer tastes. Consumer tastes, in turn, affect demand for various things. Among these factors are: Marketing. Good advertising campaigns can alter...

Latest answer posted October 4, 2012 1:37 pm UTC

1 educator answer

Economics

The reason money needs to be divisible is actually very simple and quite logical. To start with, divisibility is one of the four properties that makes a commodity, i.e., something of use or value,...

Latest answer posted May 7, 2015 8:05 pm UTC

2 educator answers

Economics

Factor intensity can be defined with regards to factor proportions theory of production and trade, where the factor intensity can be narrowed down to individual products within an industry or in...

Latest answer posted December 21, 2015 1:01 pm UTC

3 educator answers

Economics

Export and import activities take goods or services created in one country into the market of another country. Exports and imports are vulnerable from many outside forces. Free trade agreements,...

Latest answer posted October 26, 2015 11:56 pm UTC

2 educator answers

Economics

Von Thunen was a German geographer who devised a model to explain the location of various forms of land use. In particular, his model was devised after observing land use around cities in Germany...

Latest answer posted October 1, 2016 7:47 am UTC

1 educator answer

Economics

The question of whether the economic principle of competition applies in both private and public organizations can be read in two ways. Perhaps it makes the distinction between companies that...

Latest answer posted February 13, 2020 2:31 pm UTC

4 educator answers

Economics

Quality of capital per worker is an important factor in creating economic growth. As the quality of capital per worker increases, productivity increases and economic growth occurs. To understand...

Latest answer posted November 20, 2013 3:33 pm UTC

1 educator answer

Economics

Fiscal policy and monetary policy are similar in two aspects. First, they both represent a nation’s policies to regulate its economy. They both can be expansionary to increase the aggregate demand...

Latest answer posted January 22, 2018 12:52 am UTC

3 educator answers

Economics

The government can help influence the allocation of resources, or the ways in which producers have access to the means of production and the ways in which goods and services are distributed among...

Latest answer posted January 24, 2017 12:55 am UTC

2 educator answers

Economics

The GDP or gross domestic product of a nation refers to the total monetary value of all goods and services produced within the geographic boundaries of a nation in a particular duration of time....

Latest answer posted May 19, 2016 9:10 am UTC

2 educator answers

Economics

Price functions as a reflection of supply and demand in a free market economy. For example, if you want to buy a pack of gum, and there are lots of packs of gum available, the price will remain...

Latest answer posted April 22, 2018 4:18 pm UTC

3 educator answers

Economics

Overall abundance does not mean that scarcity does not exist in certain markets or for certain people. This is because many factors can make an abundant resource scarce for some. Temporary crises...

Latest answer posted July 5, 2020 7:16 pm UTC

3 educator answers

Economics

No, when the price level falls, the value of money does not fall. In fact, the reverse happens. When the price level rises, the value of money falls. When the price level falls, the value of...

Latest answer posted May 2, 2013 8:35 pm UTC

1 educator answer

Economics

There are two sides to any transaction. There is a seller, and there is a buyer. To use an example, when you enter a store to purchase something, you are the buyer. The store, or its owner, is the...

Latest answer posted April 18, 2020 2:18 pm UTC

5 educator answers

Economics

External benefits are a form of positive unintended consequences. One of the areas in which this is most often discussed is energy efficiency. The less energy it takes to make a product, the lower...

Latest answer posted February 19, 2017 11:25 am UTC

2 educator answers

Economics

Credit cards are not money. As the name implies, they give you credit: an IOU. The bank, in other words, is loaning you money when you use a credit card. You have to pay this money back within a...

Latest answer posted April 4, 2020 3:34 am UTC

4 educator answers

Economics

The demand curve for labor is Q=100-5P and the supply curve is Q=5P. At the equilibrium point, the demand curve and the supply curve intersect each other. If the equilibrium price is Pe, the...

Latest answer posted October 25, 2017 5:01 am UTC

2 educator answers

Economics

The key difference between investment and consumption spending is that much of consumption spending is obligatory, while investment is discretionary. Imagine a middle-class suburban family. Their...

Latest answer posted October 15, 2018 5:21 pm UTC

2 educator answers

Economics

It is misleading to suggest that a free market means a level playing field or a pure meritocracy. Market economies do not exist in some ideal theoretical world with no history and no concrete...

Latest answer posted September 26, 2016 5:32 pm UTC

4 educator answers

Economics

Items that people are willing to buy even when prices increase are said to be demand inelastic. Overall, the demand for breakfast cereal is demand inelastic, because in western societies, cereal is...

Latest answer posted December 9, 2018 2:51 pm UTC

3 educator answers

Economics

Of these options, B, C, and E would affect demand while the other two options would affect supply. To understand why this is so, let us think about the meaning of supply and demand. Supply is the...

Latest answer posted July 10, 2013 9:49 pm UTC

1 educator answer

Economics

The first issue is to distinguish two very different aspects of the mobile phone market from one another. Those are the market for physical hardware or phones themselves and the market for cellular...

Latest answer posted November 22, 2019 9:30 pm UTC

5 educator answers

Economics

To find the difference between appreciation and depreciation of a currency, let's start with how they are alike. Both appreciation and depreciation measure the value of one or more currencies...

Latest answer posted May 8, 2015 2:24 am UTC

2 educator answers

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