• 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 –...

• 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...

• 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...

• 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...

• 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."...

• 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...

• 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...

• 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...

• 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...

• 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...

• 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...

• 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...

• 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...

• 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...

• 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 =...

• 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...

• 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...

• 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....

• 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,...

• 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...

• 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...

• 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...

• 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....

• 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...

• 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...

• Economics
What you are asking about here is what are called "built-in stabilizers." This term refers to aspects of government policy that automatically tend to "stabilize" the economy when it moves towards...

• Economics
As a large multinational corporation, Nike has many advantages over its competitors. Because of its large size, it is able to secure many of the factors of production at lower rates than its...

• Economics
The best answer to this is that the availability of resources is the major determinant of supply in an economy that is growing rapidly. This is true both for the supply of individual goods and for...

• Economics
It is possible to argue this in two ways. It is possible to say that a market economy would handle this situation best, but it is also possible to say that a command economy (the more totalitarian...

• Economics
In order to understand what impact this action has on gross domestic product (GDP), we must first determine what the multiplier is in this situation. The formula for the multiplier is Tax...

• Economics
We can find the answer to this by using the equation for finding marginal revenue. This equation is marginal revenue = change in total revenue/change in quantity. In this case, the original total...

• Economics
Of these, only B is a macroeconomic issue. All of the others are primarily microeconomic issues. Macroeconomics is the study of the economy as a whole. By contrast, microeconomics looks at...

• Economics
Many different externalities affect nations. Three examples would be: Air pollution: Air pollution knows no boundaries. Canada has a continuing concern about U.S. air pollution, and especially the...

• Economics
There are three main types of market failure. They are: Monopoly. In some cases, one competitor in a market can come to dominate that market completely. In such a case, there is no competition...

• Economics
In the long run, an economy that is experiencing an expansionary gap (also called an inflationary gap) adjusts automatically through the price mechanism. When an economy is experiencing an...

• Economics
There are very important fundamental distinctions between active and passive approaches or polices when the Federal Reserve Board is contemplating modifications to the existing monetary policy....

• Economics
Absolute advantage and comparative advantage are two important concepts when transactions between two parties are involved, for example trade between two countries, two states or even two...

• Economics
Of the choices given here, the best choice is A, the goods market. The exact name of this market will vary from diagram to diagram, but “goods market” is the only one of the choices given that can...

• Economics
We tend to use these words interchangeably, and indeed their meanings are extremely close to one another. Nevertheless they are distinct. An approximate definition would be; Money is a way of...

• Economics
The answer is what makes a free market economy work: Supply and demand. If there is a lot of demand and little supply prices go through the roof. If there is a lot of supply and little demand,...

• Economics
Yes, some of the elements of this scenario do show flows from households to businesses. This question refers to a circular flow model, which is a basic model showing the relationship between...

• Economics
The major limit to our long term economic growth will be our ability to innovate and to become more productive over time. We will never again be able to compete with other countries in terms of...

• 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...

• Economics
The question asks about the effect of a reduction in per unit tax on the market supply of a good. We will assume that this refers to a tax placed on the item at point of sale and assessed by the...

• Economics
Assuming that both the United States and the United Kingdom allow their currencies to float, the situation you describe will lead (all other things being equal) to a decrease in the price of the...

• Economics
In order to determine what the Fed needs to do, we must first determine what the money multiplier is. The formula for finding the money multiplier is Money multiplier = 1 / required reserve...

• Economics
Gross Domestic Product (GDP) is made up of the expenditures by consumers, governments, and by businesses (on capital investment). It is also includes net exports (exports minus imports). Of the...

• Economics
Of the answers given here, the best is D. When the velocity of money increases, each dollar (or other currency) is spent more often. The money circulates more quickly through the economy. This...