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Economics
The best answer for this would be corn. Eggs are just about as good, but corn is probably a little bit better. The relevant aspects of perfect competition for the purposes of this answer are that...
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Economics
Sport Utility Vehicles (SUVs) are vehicles that combine varying elements of off-road, all terrain, and road-going vehicle features. Over the years, SUVs have started to be offered in an...
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Economics
The effectiveness of market competition, as understood according to classical liberal economics, is always dependent on the circumstances in which a given business has to operate. The purely...
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Economics
The yield curve is a curve that depicts several interest rates for several loan periods (1 year, 5 years, 15 years, 20 years, 30 years, etc.) for the same loan to a particular borrower. The yield...
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Economics
The principle of competition applies to individuals within both private and public organizations. However, it applies to private organizations much more than to public organizations. People in...
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Economics
There is an old saying: “Jack of all trades; master of none.” What this means is that a generalist may be knowledgeable and skilled across a broad spectrum of activities but not represent the...
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Economics
“Opportunity cost” refers to the sacrifice that an individual makes by not taking one course of action because of the potential benefits they might accrue by pursuing an alternative one. For...
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Economics
The Federal Reserve publishes the Beige Book as a source for information and decision making for banks, financial institutions, manufacturers, and government agencies. The report, like most...
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Economics
Price elasticity of demand is mainly of interest to the government for the purposes of taxation. Governments in most places impose sales taxes or value-added taxes. These sorts of taxes raise the...
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Economics
The question you are asking is an example of price elasticity of demand: how the quantity demanded of a product or service rises or falls in response to a change in the price of that product or...
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Economics
Marxism continues to be an ideology and framework for understanding nation-state and economic realities around the world. In terms of analysis of boss/owner-worker relations and dynamics, Marxism...
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Economics
In economic terms, the market for allotments is in disequilibrium because the government has effectively set a price floor for the allotments. In recent years, the demand for allotments has gone...
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Economics
No, this statement is not accurate. Monopolists cannot simply raise prices as high as they like. The demand for their goods or services may be less elastic than the demand for most other...
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Economics
China is a member of the World Trade Organization. As such, it is supposed to be doing away with trade barriers. China became a member of the WTO in 2001 and has been reducing its trade barriers....
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Economics
There are many microeconomic factors which can affect the automobile industry. We will examine two. Price of oil/gas. The price of oil affects what sorts of cars people want to buy. As the price...
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Economics
Globalization has created a good deal of confusion as to the economies of the major three countries in the world. We typically think of the United States as a capitalist, Russia as communist, and...
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Economics
Based on Economics (Tregarthen and Rittenberg), if we spend $1 more on capital, we must spend $1 less on labor. Since the marginal product of capital is 60, and the price of capital is $6, the...
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Economics
Manipulating interest rates is one of the things that the Federal Rreserve does to carry out montery policy. The Fed changes interest rates to try to prevent excessive inflation or to try to give...
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Economics
In order to answer these questions, we must do a bit of simple algebra. First, we will find the equilibrium price and quantity using the equations given. The demand curve’s equation was Q = 100 –...
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Economics
Increased trade could alleviate some of the poverty of Brazil, since it would create a greater demand for Brazilian products and thus create more jobs. The influx of jobs created through...
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Economics
Microsoft, of course, does not sell only one product. Therefore, it is in at least two market structures. When it comes to operating systems, Microsoft is essentially a monopoly. Microsoft...
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Economics
The market for cell phones and cell phone service is an oligopolistic market, at least in the United States. The market for cell phones and cell phone service is clearly not a monopoly. There is...
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Economics
If the government places a tax on each radio that sellers produce, the outcome will be negative for both sellers and buyers. The consumer surplus will shrink and the producer surplus will also...
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Economics
To calculate Price Elasticity of Demand, you need to calculate the percent change in demand for each percent change in price of that good. With the knowledge we have of the goods, the demand for...
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Economics
Not having access to the actual proceedings of the student’s working group, it is not possible to assess success or failure on the part of any or all the three economic groups involved in the...
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Economics
Fresh fruit often comes from a variety of farms within an area. Many countries often insist that the place of origin is listed on packaging for fresh fruit or at least the case it arrives in at the...
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Economics
The basic difference between these two is that the resource market is the market for things that are used to make other things while the product market is the market for the things that are...
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Economics
If one or more of the factors of production is weak, economies will have to try to do better with the other factors of production. For example, a country like Japan has relatively little "land."...
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Economics
There is no credible economist who would disagree with the premise of new technologies displacing workers. Historical evidence supports the conclusion of economists, and it also may provide a clue...
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Economics
The reason for this is that the marginal cost is part of the average total cost. Therefore, a change in the marginal cost of making the next unit of output will affect the average total cost. We...
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Economics
First, we need to determine the amount of the recessionary gap that exists in this economy. Since the real GDP at the current time is $14 trillion, and since the government wants a real GDP of $15...
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Economics
A market economy only works if people are free to do what they want (within reason) with their property. They are allowed to have money and are free to buy what they want. They are allowed to...
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Economics
There are four components to aggregate expenditures. These components are used to calculate gross domestic product. The four components are consumer spending, investment on the part of...
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Economics
The correct answer to this is C. This sort of a fiscal policy (more government spending, no change in the level of taxation) would lead to an increase in aggregate spending and a move to the right...
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Economics
Of the four choices that you have given here, the second is the best answer to this question. In a market economy like that of the United States, people are generally paid according to their value...
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Economics
Recent increased tariffs have had an extremely negative impact on both American consumers and businesses. This result has not been surprising because there is a historical antecedent for the...
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Economics
There are a number of factors that determine what a particular economy produces. These are commonly known as factors of production. The most central factors of production are often the natural...
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Economics
What this would mean is that the economy was experiencing deflation. Deflation is when the price level for the economy as a whole drops. If the price level is dropping, a small increase in...
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Economics
There are two main similarities between fiscal policy and monetary policy. The first of these has to do with the goals of these policies. In both cases, the goal is to keep the economy growing at...
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Economics
What you are trying to do here is to find the investment multiplier. This is found through the equation multiplier = 1/1-MPC Since you have the MPC, this is easy to calculate. Multiplier =...
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Economics
Gross Domestic Product or GDP is a measure of the total value of all the goods and services produced in a country in a given time. In contrast, full employment GDP refers to the scenario when all...
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Economics
Organized crime can be gang- or mob-related, but in this case, since we're discussing 9/11, I will discuss it in relation to terror groups. Organized crime can pose a significant threat to supply...
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Economics
Banks play two major, closely related roles in the economy. They serve to provide the loans that allow a great deal of consumption and investment to occur and they increase the supply of money....
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Economics
The production possibility frontier (PPF) gives an idea of the opportunity cost of producing a particular product. If there are two products A and B that can be produced using the same resources,...
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Economics
In an ideal market for any product the quantity supplied increases with the price of the product and the quantity demanded decreases with an increase in price. The opposite is true for a decrease...
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Economics
No, this statement is not true. An increase in aggregate demand is often desirable, but it can also lead to inflation in some circumstances. An increase in aggregate demand is good if aggregate...
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Economics
If two countries experience different rates of inflation and the exchange rate does not adjust, then the exchange rate between the two will overvalue the currency of the nation that has the higher...
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Economics
If there were to be a reduction in the availability of credit and debit cards, it would lead to an increase in the demand for money. It is likely that the increase would not be very big, however....
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Economics
That's the trillion-dollar question, isn't it? If we knew precisely what determined the GDP of a country, development economics would be a solved problem.But I can tell you some things that most...
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Economics
Risk and return go hand in hand because the riskier investments do not attract as many investors. Therefore, they have to offer greater rewards to those who do invest in them. If a particular...