Economics Questions and Answers

Economics

This causes two problems for people who are trying to compute the consumer price index (CPI). First, there is the problem of new goods that become something of “necessities” for the average...

Latest answer posted October 2, 2012 6:39 pm UTC

1 educator answer

Economics

In a sense, the market structure does not affect output decisions. All firms should determine the quantity of output in the same way. In all market structures, the best quantity of output is the...

Latest answer posted April 6, 2012 2:34 am UTC

1 educator answer

Economics

When governments practice protectionism (restricting or banning imports), they are typically trying to improve their own domestic economies. Many governments feel that imports compete unfairly with...

Latest answer posted May 26, 2011 10:06 pm UTC

1 educator answer

Economics

One aspect of the American economy that is suffering is exports. In 2014, dockworkers on the West Coast entered a conflict with employers in which both parties were "blaming each other for problems...

Latest answer posted May 27, 2015 7:22 am UTC

1 educator answer

Economics

Malaysia’s economical woes can be traced back to the Chinese economic slowdown. The country is one of the China’s largest trading partners and the ripples of the downturn in China were bound to be...

Latest answer posted November 25, 2015 3:03 pm UTC

1 educator answer

Economics

My opinion of Keynesian economics is that it works better in theory than it does in practice. The main reason for this is that those who hold political office have a hard time following Keynes’s...

Latest answer posted February 22, 2013 12:20 am UTC

1 educator answer

Economics

What a productions possibility curve is supposed to show you is A) that there are tradeoffs and opportunity costs because you have to make less of one thing to make more of another, B) that...

Latest answer posted August 14, 2015 5:46 pm UTC

1 educator answer

Economics

The marginal propensity to consume (MPC) is an economic metric that calculates how much money a person is likely to spend if their income increases. For example, if a person receives a $200 check...

Latest answer posted February 24, 2021 6:57 pm UTC

1 educator answer

Economics

Within a system of mercantilism, the banks and large businesses are the primary forces behind public policy. While this focus on financial profits can create large economic growth for a nation as a...

Latest answer posted February 19, 2021 6:54 pm UTC

1 educator answer

Economics

The relationship of mercantilism to “absolute advantage” is largely antithetical. Whereas mercantilism posits a zero-sum relationship between two entities (in this context, nations) wherein a...

Latest answer posted February 19, 2021 7:55 pm UTC

1 educator answer

Economics

To be precise, a good itself cannot be elastic in economic terms. Instead, it is proper to say that demand for the good is elastic. When we say that demand for a good is elastic, we mean that,...

Latest answer posted November 4, 2013 4:31 pm UTC

1 educator answer

Economics

One of Nike's main advantages is longevity. Nike was founded in 1964 and almost immediately helped revolutionize the entire sportswear industry. One of the ways in which Nike has been particularly...

Latest answer posted January 25, 2019 6:11 pm UTC

2 educator answers

Economics

First, we have to remember that externalities come in two basic types. There are both positive and negative externalities. Of course, the government will respond differently to the two. With...

Latest answer posted April 24, 2013 3:12 am UTC

1 educator answer

Economics

The reserve ratio refers to the percentage of deposits that the bank is required to keep in order to efficiently handle customer demands for withdrawals. The money multiplier shows how the money...

Latest answer posted November 23, 2018 5:44 am UTC

2 educator answers

Economics

Proponents and opponents of raising the minimum wage nationwide are both equally convinced about the correctness and effects of their position. While everyone seems to favor an improved economy,...

Latest answer posted December 10, 2018 5:49 am UTC

1 educator answer

Economics

Many economists, including Nobel Prize winner Paul Krugman, have asserted that financial deregulation, begun under the Ronald Reagan administration in the 1980s, had the largest impact on the...

Latest answer posted July 16, 2018 1:10 am UTC

2 educator answers

Economics

Trade-off and opportunity cost are both terms in economics that refer to choosing one option over other options based on the value of the various options. When we have to make a selection among...

Latest answer posted September 16, 2020 6:31 pm UTC

1 educator answer

Economics

This is an interesting assignment. It is important to keep in mind that when the New Deal was launched, America was still in the midst of the Great Depression that followed the stock market crash...

Latest answer posted March 7, 2020 12:12 pm UTC

1 educator answer

Economics

When using the basic circular flow model, it is possible to add nuance by adding injections to the model and leakages from it. The leakages and injections should cancel one another out, producing...

Latest answer posted October 2, 2012 6:33 pm UTC

1 educator answer

Economics

There are always limits. You cannot perpetually grow. Eventually, you will run out of resources. When we ran out of capital, we began to rely more on other countries. Look where that got us.

Latest answer posted September 26, 2011 3:22 am UTC

2 educator answers

Economics

The Circular-Flow Model depicts the way that money and products flow within the economy, illuminating the interdependent relationship between the different facets of the economy. The model includes...

Latest answer posted October 24, 2018 1:58 pm UTC

2 educator answers

Economics

The only one of these choices that could be correct is the first one. The others show an improper connection between price and quantity demanded. The one caveat is that the phrase in the first...

Latest answer posted March 29, 2012 6:30 am UTC

1 educator answer

Economics

Free ports are locations from which goods can be imported and exported without the exporter or importer having to pay tariffs that are levied on the same products when they are brought into the...

Latest answer posted February 8, 2011 5:30 pm UTC

1 educator answer

Economics

A labor-intensive good is, as the name suggests, one that requires lots of labor to produce. For instance, anything that is handmade could be considered labor-intensive, depending on how much time...

Latest answer posted September 8, 2020 1:10 pm UTC

1 educator answer

Economics

No, the overall unemployment rate does not provide an accurate picture of the impact of unemployment on all groups. There are a number of reasons for this. They include: Different demographic...

Latest answer posted November 12, 2012 5:43 pm UTC

1 educator answer

Economics

This is not necessarily a true statement. Of course, it is true that subsidies take up tax revenues rather than bringing them in. However, revenue is not the main point of having a trade barrier....

Latest answer posted April 13, 2013 3:44 pm UTC

1 educator answer

Economics

From the way the question is worded, it looks like we are to assume that the marginal utility of each of these goods does not diminish as we buy more; normally it would, by the Law of Diminishing...

Latest answer posted June 3, 2016 7:10 pm UTC

1 educator answer

Economics

You pose your question about legal and illegal immigrants under the heading of "Economics." Thus I must infer that you mean to ask what is the difference between legal and illegal immigration in...

Latest answer posted February 14, 2012 10:13 am UTC

8 educator answers

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...

Latest answer posted July 22, 2019 2:11 pm UTC

1 educator answer

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

1 educator answer

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...

Latest answer posted February 5, 2020 3:21 am UTC

1 educator answer

Economics

When deciding which job to take, you have to consider many things. Job A will pay you more, but it will also cost you more in monetary costs (for your new clothes and your transportation) as well...

Latest answer posted February 20, 2012 11:26 pm UTC

1 educator answer

Economics

Outside of their names, there is not much that is similar between these two market structures. First of all, they have very different structures in terms of the number of firms involved....

Latest answer posted April 3, 2013 6:47 pm UTC

1 educator answer

Economics

Economists argue that minimum wages affect labor markets by creating surpluses of labor. In other words, minimum wages create a situation in which there are more people who want to work at the...

Latest answer posted March 19, 2013 4:13 pm UTC

1 educator answer

Economics

The best answer for this question is D. Gross Domestic Product only counts services that are bought and sold. It does not count any services, regardless of how valuable they are, that are not...

Latest answer posted July 9, 2012 12:40 am UTC

1 educator answer

Economics

In a perfectly competitive market, a firm that invents a new method of production that lowers its marginal costs will either have lighter losses if it is unprofitable or higher profits if it is...

Latest answer posted January 8, 2019 9:20 pm UTC

2 educator answers

Economics

Excess production makes free markets possible. If there were no excess production, there would be no market. In a situation where people only make what they themselves need, there is no exchange....

Latest answer posted March 12, 2013 6:41 am UTC

1 educator answer

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...

Latest answer posted November 13, 2019 7:46 pm UTC

1 educator answer

Economics

The reason that there are many measures of money is because money can be more or less liquid. It is important to know how much money is out there in the economy, but it is also important to break...

Latest answer posted February 18, 2013 2:03 am UTC

1 educator answer

Economics

Based on the information in the question, Lucia is correct to warn Mario that the increase in prices might undermine his conclusion. In fact, this increase should almost certainly undermine his...

Latest answer posted January 29, 2021 2:42 pm UTC

1 educator answer

Economics

The easiest way to think of a balanced budget is to consider your budget. If you are working and earning a weekly salary, as long as you don't spend more than you make, your budget is balanced....

Latest answer posted March 22, 2019 6:34 pm UTC

2 educator answers

Economics

The reason for this has to do with supply and demand and also with the concepts of fixed costs and variable costs. Firms charge lower prices during times when demand is low. A movie theater has...

Latest answer posted March 20, 2012 9:14 am UTC

1 educator answer

Economics

Industrial goods are products that are manufactured to allow factories to produce goods for the public. Demand for industrial goods is dependent on the demand for consumer goods. If consumers want...

Latest answer posted April 13, 2016 4:43 pm UTC

1 educator answer

Economics

The Federal Reserve (the Fed) uses monetary policy to try to improve the economy. When there is excessive unemployment in the economy (during a recession) the Fed needs to try to increase the...

Latest answer posted November 25, 2012 2:26 am UTC

1 educator answer

Economics

A diagram of a free market economy would have at its base the voluntary transactions of all the buyers and sellers in each market (the market for shoes, the market for phones, houses, coffee,...

Latest answer posted January 4, 2019 8:57 pm UTC

2 educator answers

Economics

If it is always true that frozen prepared pizzas are cheaper than homemade pizzas (and I am not sure that it always is true as I have seen people do calculations claiming that their homemade pizzas...

Latest answer posted March 14, 2013 7:39 pm UTC

1 educator answer

Economics

The government controls the supply of money in the economy through monetary policy. In the United States, there are three main tools of monetary policy, all of which are controlled by the Federal...

Latest answer posted October 11, 2012 2:09 pm UTC

1 educator answer

Economics

To find the elasticity coefficient for this product, we use the midpoints formula. This is expressed as Elasticity coefficient = [(Q2 – Q1)/(Q1 + Q2) divided by [(P2 – P1)/(P1 + P2)]. It does not...

Latest answer posted October 23, 2012 8:26 pm UTC

1 educator answer

Economics

The substitution effect is when there is a change in quantity demanded due to the change in the price of one good relative to another good. Consumers take the good whose price stayed low and...

Latest answer posted August 11, 2011 1:55 am UTC

1 educator answer

Economics

If the government cuts the subsidy provided to tobacco farmers, the farmers would have to compensate for the decrease in their revenues earned by increasing the cost of tobacco that they sell to...

Latest answer posted February 2, 2012 10:27 am UTC

1 educator answer

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