Economics Questions and Answers

Economics

The Federal Reserve (Fed) can do a few things to help the economy. It can lower the interest rate by which it loans money to banks. This means that banks can lower the rates they give consumers to...

Latest answer posted December 23, 2018 3:27 pm UTC

2 educator answers

Economics

The "model of perfect competition" includes a list of requirements that must be met for a state of "perfect" (or "pure") competition to exist. The list expands or contracts according to various...

Latest answer posted December 6, 2016 4:06 am UTC

1 educator answer

Economics

There are advantages and disadvantages of a free market economy and government intervention. One advantage of a free market economy is that the economy is most efficient when this condition exists....

Latest answer posted October 23, 2015 9:30 pm UTC

1 educator answer

Economics

All of the elements of the above scenario represent a flow from household to a firm. Consider that a free market economy is an integrated economy – one element or aspect of this type of economy...

Latest answer posted February 4, 2015 8:16 pm UTC

2 educator answers

Economics

When the price of a product increases, the quantity producers are willing to supply goes up and the quantity demanded by consumers comes down. The reverse happens when there is a drop in price. Due...

Latest answer posted September 29, 2012 1:36 pm UTC

1 educator answer

Economics

With the end of the Cold War and the collapse of the Soviet Union, communism has largely been eliminated from consideration of viable or major economic systems. The two main surviving economic...

Latest answer posted July 2, 2013 7:56 pm UTC

1 educator answer

Economics

One factor is the media's influence on the car industry. Car companies can tout their car's performance, safety, and price. They can vary in their advertising techniques by showing families, racing...

Latest answer posted January 8, 2020 7:12 pm UTC

4 educator answers

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...

Latest answer posted December 16, 2019 1:41 pm UTC

1 educator answer

Economics

Perfect competition occurs when all the firms within the industry have a small share of the market or the market is almost equally split among the different entities. In imperfect competition some...

Latest answer posted December 29, 2015 3:39 pm UTC

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Economics

Pareto efficiency refers to an allocation of resources where the marginal rate of substitution is the same for all consumers. The allocation should be such that if there are two entities being...

Latest answer posted April 22, 2015 4:52 am UTC

1 educator answer

Economics

The benefits of a free-market economic system have long been identified as (A) lower prices for goods and services and (B) higher-quality goods and services for the consumer. In a free-market...

Latest answer posted January 22, 2017 4:13 am UTC

2 educator answers

Economics

There are two different ways to conceive of this question, each with a different answer. One way to understand this question is to say that it is asking about our conscious choices. In other...

Latest answer posted January 4, 2013 3:16 pm UTC

1 educator answer

Economics

A lot of your questions are rather subjective. How you answer them will depend on your own socioeconomic status and how your socioeconomic position has changed or hasn’t changed throughout your...

Latest answer posted September 10, 2020 2:18 pm UTC

1 educator answer

Economics

A price ceiling is a maximum price. It is instituted in times of national emergency in order to prevent price gouging. This regulation is meant to ensure fairness for the public in times of...

Latest answer posted March 8, 2019 10:34 pm UTC

2 educator answers

Economics

An advantage of a buffer stock scheme is that it can moderate large price fluctuations in a given commodity market, providing greater assurance of long-run supply at a cost at which production will...

Latest answer posted December 16, 2018 11:56 pm UTC

2 educator answers

Economics

The economic impacts of lasers are generally positive. There only very few negative impacts of this technology. Lasers have opened up many new sorts of economic activities. They have made it...

Latest answer posted December 1, 2013 4:49 pm UTC

1 educator answer

Economics

The lack of a double coincidence of wants is a major reason why it is important to have a system of money. Without money, we need to barter. But barter depends on a double coincidence of wants....

Latest answer posted February 25, 2012 11:40 pm UTC

1 educator answer

Economics

The economy is important to households, consumers (these two are essentially the same thing), and firms because it determines the sorts of opportunities those groups have to make money and to buy...

Latest answer posted July 19, 2015 4:00 pm UTC

1 educator answer

Economics

The best way to distinguish between these two is to understand that demand is represented as a line on a graph while quantity demanded is represented by a point. Demand is the amount of a good or...

Latest answer posted June 27, 2012 4:22 pm UTC

1 educator answer

Economics

According to microeconomic theory, a market structure can be said to fall under the condition of perfect competition if all of the following criteria are met: 1.) The various sellers of a product...

Latest answer posted February 26, 2020 5:11 am UTC

3 educator answers

Economics

The principle of competition does not generally apply to public organizations. This is because they typically do not have any competitors. It may apply within those organizations, but not for the...

Latest answer posted September 15, 2012 1:14 am UTC

1 educator answer

Economics

A required reserve ratio is the percentage of cash from customer deposits the Federal Reserve requires banks to hold. For example, if the Federal Reserve sets a 10% reserve ratio, commercial banks...

Latest answer posted December 19, 2016 3:31 pm UTC

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Economics

The relationship between the two is somewhat indirect. If people have smaller disposable incomes, they will spend less money, reducing the amount of revenue raised through sales taxes. This has the...

Latest answer posted May 24, 2016 4:17 am UTC

3 educator answers

Economics

To affect the total money supply, you can use a simple formula. Change in total money supply divided by money multiplier equals the change in necessary reserves. The money multiplier is the inverse...

Latest answer posted April 24, 2019 3:42 pm UTC

3 educator answers

Economics

When a buyer buys one thing and gets another free, the second item cannot truly be free. The reason for this is that someone has to absorb the cost of the "free" item. It may be that other buyers...

Latest answer posted May 10, 2012 12:12 am UTC

1 educator answer

Economics

There are three key concepts to understand when solving this question: 1. The Production Possibilities Curve (ppc) shows all the combinations of goods you can feasibly produce. This means it shows...

Latest answer posted February 21, 2019 4:59 am UTC

2 educator answers

Economics

One method of growing a factor of production would be importing workers. This can be done by providing visas for unskilled laborers to come take unfilled jobs or it can be by providing financial...

Latest answer posted October 21, 2019 11:05 pm UTC

4 educator answers

Economics

For any product or service in a free market, at equilibrium the quantity demanded is equal to the quantity supplied. You have the equations which provide the relation between quantity demanded or...

Latest answer posted August 31, 2011 12:37 pm UTC

1 educator answer

Economics

If we are discussing the US economy, the 4,00o people who have given up looking for a job would make the unemployment figures look significantly better. This is because the US Department of Labor...

Latest answer posted December 16, 2020 2:08 pm UTC

1 educator answer

Economics

Since the fictional country has a trade deficit, it's an open economy. In an open economy, the savings (S) are equal to the government savings (GS) plus the private savings (PS): S = GS + PS...

Latest answer posted September 13, 2018 9:07 am UTC

4 educator answers

Economics

There are two possibilities that would result in the decrease in market equilibrium price and an increase in equilibrium quantity. One of these is as illustrated by Pohnpei397, an increase in...

Latest answer posted February 23, 2015 12:10 pm UTC

2 educator answers

Economics

From the beginning of the Industrial Revolution, especially here in America, the disadvantages of a capitalist society have been readily apparent: workers without safety precautions; working in...

Latest answer posted July 31, 2011 6:22 am UTC

6 educator answers

Economics

The equilibrium price and quantity for a good or service are determined (in a free market) by supply and demand. When supply or demand changes, the equilibrium price and quantity will change as...

Latest answer posted November 4, 2013 1:47 pm UTC

1 educator answer

Economics

In theory, a monopolist can set any price it wants. Absent the pressure to push prices down due to competition, the sole supplier of a good or service is free to charge its customers whatever...

Latest answer posted April 12, 2018 1:25 am UTC

2 educator answers

Economics

Gross Domestic Product can be calculated in several ways, the most common of which is by market value. If the GDP of Ruritania for 2019 is $100 billion, therefore, this means that the total market...

Latest answer posted September 25, 2020 6:49 am UTC

1 educator answer

Economics

Marginal product of labor is the extra units of output produced with increase in the amount of labor units. Normally, when all other factors of production are held constant, the marginal product of...

Latest answer posted July 11, 2015 7:07 pm UTC

1 educator answer

Economics

Government has many options towards ending a recession. Government can cut taxes on individuals and businesses in order to stimulate spending in these sectors. Businesses will ideally take the...

Latest answer posted March 7, 2019 3:38 pm UTC

4 educator answers

Economics

Brazil is going through a rough patch, but they'll be okay in the long run. Already, Brazil is an upper-middle income country with a GDP over $2 trillion. Per capita their GDP is about $15,000,...

Latest answer posted May 19, 2016 8:00 pm UTC

2 educator answers

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...

Latest answer posted January 26, 2012 12:11 pm UTC

1 educator answer

Economics

In economic analysis, it is important to consider economic cost so that you can determine which choice is the right one. Economic cost is distinguished from accounting cost. Accounting cost only...

Latest answer posted July 17, 2012 7:35 pm UTC

1 educator answer

Economics

If you are maximizing output for fixed cost or minimizing cost for fixed output (there is a duality that makes these two optimization problems equivalent), the price you pay for a given amount of...

Latest answer posted May 9, 2016 7:59 pm UTC

1 educator answer

Economics

From a production perspective, effective resource allocation means that the available resources are utilized with minimal to no waste during the different processes. Thus, each aspect of the...

Latest answer posted September 7, 2017 10:09 am UTC

3 educator answers

Economics

A household budget is based on two figures. One is the amount of income for the household, the other is the amount of expenses. Based on the amount of money that can be predicted to be brought into...

Latest answer posted August 15, 2011 9:06 pm UTC

1 educator answer

Economics

A product whose demand is price elastic is one that is easily avoided if the price is too high. Products in this category would be considered luxury items, as opposed to necessities. In hard...

Latest answer posted December 6, 2011 6:35 am UTC

10 educator answers

Economics

Supply is the amount of a good or service that producers make available, and demand is the amount of that same good or service that consumers are willing to buy. In a market economy, supply and...

Latest answer posted December 11, 2018 5:18 pm UTC

3 educator answers

Economics

The opportunity costs of buying a new car and going to college can be compared in terms of the actual money required for both expenditures, but also in regard to the significant differences between...

Latest answer posted June 13, 2020 5:33 am UTC

1 educator answer

Economics

The euro system has created a large zone within Europe in which various countries all share the same currency. This single currency system has one major advantage, as well as one major...

Latest answer posted July 31, 2016 7:16 pm UTC

1 educator answer

Economics

Economists who accept the quantity theory of money are usually called monetarists. Monetarists believe that there is a direct proportional relationship between prices and the amount of money in...

Latest answer posted December 30, 2018 2:55 pm UTC

2 educator answers

Economics

Demand-side economics (also known as Keynesian economics) is related to the federal budget deficit because it often prescribes deficit spending. According to demand-side economics, the way to get...

Latest answer posted September 24, 2012 8:22 pm UTC

1 educator answer

Economics

Macroeconomics is the “forest” because it is concerned with the big picture. Microeconomics is “in the trees” because it is concerned with the details that make up the “forest.” Microeconomics is...

Latest answer posted November 5, 2013 2:55 am UTC

1 educator answer

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