Economics Questions and Answers

Economics

All other things being equal, a weak dollar will lead to an increase in exports to countries with currencies that have grown stronger relative to the dollar. We must remember that a dollar that is...

Latest answer posted February 20, 2013 5:42 pm UTC

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Economics

One of the ways in which India's economic development has evolved since the 1960s is through greater economic liberalization. For much of its history since Partition, India has been a government...

Latest answer posted July 7, 2013 12:46 am UTC

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Economics

The phrase “invisible hand” is a metaphor for how free markets work. It was coined by Adam Smith, the famous free market economist. The invisible hand is the collective will of the market, of all...

Latest answer posted January 28, 2013 2:40 am UTC

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Economics

The average total cost curve would shift downwards because of this action. The Average Total Cost is calculated by dividing the total cost by each unit produced, and the total cost is the sum of...

Latest answer posted April 1, 2019 5:25 pm UTC

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Economics

First, it is more common to say that individual firms have market power, not that the industry as a whole has market power. Market power is the power of a firm or firms to set the prices at which...

Latest answer posted February 7, 2013 6:07 am UTC

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Economics

Naturally, I think that one of the most intense uses of the analogy can be seen in President Eisenhower's Farewell Address. His introduction of the idea in "the military industrial complex" makes...

Latest answer posted September 8, 2012 9:24 pm UTC

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Economics

There are many different philosophical positions underlying economic thought and it is far from uncommon for economists to disagree. On the one hand, there are pure free market economists who think...

Latest answer posted January 29, 2018 12:33 pm UTC

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Economics

Of the people listed in this question, only #3 is seasonally unemployed. Seasonal unemployment is unemployment that happens fairly predictably because a given job tends to only be available at a...

Latest answer posted October 28, 2012 3:54 pm UTC

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Economics

If the economy is in a recession, it is most likely in the Keynesian range of the aggregate supply (AS) curve. This means that the AS curve is flat or nearly so. If government spending increases...

Latest answer posted November 11, 2012 4:08 pm UTC

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Economics

The best way to fill in that sentence if you need two words is to use the phrase “natural monopoly.” A single seller in a market where fixed costs are so high that only one seller can survive is...

Latest answer posted December 3, 2012 2:10 am UTC

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Economics

a) market failure, b)government failure, c)external cost, d)public cost Of the choices you offer here, the best answer is A, market failure. A market failure occurs when there is something...

Latest answer posted February 13, 2013 2:03 am UTC

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Economics

There is no possible objective generic answer to this question. The answer will be different for different people since different people will have different opportunity costs for eating frozen...

Latest answer posted March 15, 2013 2:29 am UTC

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Economics

There are three main types of economic system. Each system answers the fundamental economic questions (what to produce, how to produce, for whom to produce) in a different way. The first of these...

Latest answer posted February 17, 2013 3:44 am UTC

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Economics

There are several possible approaches to creating a more equal society. The following possibilities stop short of socialism or communism but are commonly used in European social democracies: 1....

Latest answer posted November 24, 2020 1:50 am UTC

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Economics

It is simply not feasible to produce public goods using private funding. The reason for this is that there is no way to prevent free riders. A public good is non-excludable. That means that there...

Latest answer posted June 9, 2012 12:59 pm UTC

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Economics

There is no official estimate of the natural rate of unemployment. Also, we should note that the estimates can change over time. Right now, some estimates have the natural rate of unemployment at...

Latest answer posted August 1, 2012 5:30 am UTC

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Economics

In this question, you are being asked to use the expenditure approach to calculate gross domestic product. The expenditure approach breaks expenditures down into four categories. These are...

Latest answer posted September 4, 2012 5:55 pm UTC

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Economics

The answer to this is A. This is an example of the provision of public goods. However, it must be said that this function is fading and is one reason why the post office is not doing as well...

Latest answer posted October 1, 2012 1:51 am UTC

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Economics

Most economists would say that an increase in the minimum wage will not help to decrease child poverty. There are two main reasons for this. First, they would say that most poor children are not...

Latest answer posted October 4, 2012 9:35 pm UTC

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Economics

The fractional reserve requirement constrains banks’ ability to create money because it does not allow them to loan out all of the reserves which they take in. When people deposit money in banks,...

Latest answer posted February 17, 2013 3:38 am UTC

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Economics

Voting during an election has an opportunity cost associated with it. Elections are not held on holidays and a person who decides to vote usually has to spend a lot of time waiting in line for...

Latest answer posted June 9, 2012 1:30 pm UTC

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Economics

Adam Smith advocated for the laissez-faire approach when managing an economy. Today, most democratic and capitalist governments around the world, including the United States, Britain, and France,...

Latest answer posted October 13, 2018 4:38 pm UTC

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Economics

If the government puts a great deal of money into public transportation, the price of used cars will go down, as will the number of such cars that are sold. This is because the increased...

Latest answer posted April 13, 2013 10:13 pm UTC

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Economics

If all other things are equal, the monopolist will charge a higher price in the market where demand is higher. The monopolist will do this is as long as these markets are truly separate enough to...

Latest answer posted December 9, 2012 8:14 pm UTC

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Economics

One way that the government could deal with this would be to simply mandate that the company reduce its emissions of the pollutants to a given level that the government feels is acceptable. The...

Latest answer posted September 13, 2011 10:41 pm UTC

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Economics

The information provided shows that India has an absolute advantage in terms of manufacturing both cell phones as well as garments as it can manufacture each of them at a lower cost compared to the...

Latest answer posted December 16, 2010 5:35 pm UTC

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Economics

The only thing that wage levels themselves (as opposed to whether those levels are rising or falling) is how productive workers are in that economy. That typically tells us how advanced an economy...

Latest answer posted December 21, 2011 12:07 pm UTC

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Economics

A bond is a financial instrument that gives the holder a constant rate of interest. The interest is usually accumulated and given to the bond holder along with the price at which the bond was...

Latest answer posted February 18, 2012 2:06 pm UTC

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Economics

Yes. The government as a whole has done many things to try to fix the economy since the economic crisis. In fiscal policy, the major steps were the TARP program passed by Congress in October of...

Latest answer posted May 1, 2012 4:47 pm UTC

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Economics

International trade can be defined as the exchange of goods and services between countries. What is important to note here is that international trade includes the exchange of both goods and...

Latest answer posted February 16, 2012 3:52 am UTC

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Economics

If all companies around the world bought American-made products, world trade as a whole would decline and the world would be worse off. The reason for this is comparative advantage. Various...

Latest answer posted June 14, 2012 2:38 am UTC

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Economics

The majority of government economic initiatives put forth in America today are examples of Keynes's policies. This is particularly true of policies favored by the Democrats. John Maynard Keynes...

Latest answer posted September 8, 2012 8:53 pm UTC

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Economics

Determining marginal revenue is very simple. Marginal revenue is defined as the change in total revenue that is derived from the sale of one additional unit of output. Given this definition, we...

Latest answer posted September 11, 2012 2:10 am UTC

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Economics

No, this is not the correct way to define a consumer non-durable good. In fact, it is the direct opposite of the correct definition. A thing is durable if it lasts a long time. Therefore, a...

Latest answer posted September 13, 2012 1:11 am UTC

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Economics

If you are talking about aggregate demand for all products, the most important determinant is consumer income. If you are talking about the demand for a specific product, both income and consumer...

Latest answer posted April 4, 2012 12:42 am UTC

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Economics

The meaning of "long run" and "short run" are the same in all aspects of economics. The short run is a time period in which at least one factor of production is fixed. For example, in the short...

Latest answer posted April 18, 2012 11:15 pm UTC

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Economics

Of these choices, the only possible answer is the Federal Reserve Board, better known as the Fed. First of all, the WTO and the IMF are not even agencies of the United States government. They are...

Latest answer posted October 12, 2011 2:34 am UTC

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Economics

Economists care about long term trends in economic growth because only economic growth can bring about improved standards of living in a country. People want to enjoy a rising standard of living...

Latest answer posted November 15, 2012 9:28 pm UTC

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Economics

The term "division of labor" refers to a system in which people become more and more specialized in terms of the work they do. The term is most often used to refer to the way that a given product...

Latest answer posted April 12, 2012 12:07 am UTC

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Economics

Public finance is the allocation of financial resources for and by government and other public bodies. Personal finance is the allocation of financial resources for and by private individuals. Some...

Latest answer posted August 26, 2020 3:31 pm UTC

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Economics

The two problems that you mention in your explanation are indeed problems with monopolies. However, they are not the only problems. First of all, the lack of competition also has one other major...

Latest answer posted May 27, 2012 8:15 pm UTC

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Economics

What you will need to do in this case is to draw a supply and demand graph. You will need to use the graph to show the change in the market. First, of course, you will need a graph representing...

Latest answer posted September 14, 2011 10:49 pm UTC

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Economics

There are a number of types of price differentials that a company can use in an attempt to maximize profit. They include: Requiring customers to perform certain actions to get the lower price....

Latest answer posted August 21, 2012 2:08 pm UTC

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Economics

The best way to answer this question is to say that all of the price and output combinations other than the equilibrium price and output combination are inefficient. In economics, the allocation of...

Latest answer posted May 11, 2013 1:27 pm UTC

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Economics

It is a little hard to know how to answer this question as it seems to imply that normal and economic profits are the same thing. This is not the case. A normal profit is the same thing as zero...

Latest answer posted February 15, 2013 12:54 am UTC

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Economics

Since I cannot actually make diagrams for you, I will describe how to make the diagrams for each market mentioned in this question. I assume that you are familiar with basic supply and demand...

Latest answer posted February 9, 2015 11:40 pm UTC

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Economics

There are three main functions of money, and checks perform all of them pretty well. This is why checkable deposits are part of M1, the measure of the most liquid money. Of course, the check...

Latest answer posted July 21, 2012 1:19 pm UTC

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Economics

A person has comparative advantage over another person if they have a lower opportunity cost for doing something. Therefore, to find out who has the comparative advantage, we must find out who has...

Latest answer posted September 12, 2012 3:14 am UTC

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Economics

This statement is true. When a government pays out unemployment compensation to an individual it is considered to be a transfer payment. Transfer payments are defined as payments made by the...

Latest answer posted September 13, 2012 1:42 am UTC

1 educator answer

Economics

Until about 2006, the European Union guaranteed a price of sugar for its farmers that was roughly double the world level. Using a well-labeled diagram of the market for sugar within the EU, show...

Latest answer posted February 9, 2015 8:33 pm UTC

1 educator answer

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