Explain the following terminologies in economics

Economics Terms Explained: * Spreading the overhead. * A break-even level of production. * The efficiency of mass production? How does the theory of efficient production apply to managers of government bureaus or departments that are not run for profit? How about non-profit clubs that collec...

Asymmetric Information for Market of Used Cars

2) Suppose that there is asymmetric information in the market for used cars. Sellers know the quality of the cars that they are selling, but buyers do not. Buyers know tat there is a 40% chance of getting a lemon a low quality used car . A high quality used car is worth $30,000, and a low quality u...

Production Questions for Cost

2) At the end of the year, a firm produced 18,000 lab top computers. Its total costs were $8 million , and its fixed costs were $5 million. what are the avg. variable costs of this firm? 3) The cost structure of a manufacture of microchips is described in the table shown below . The firm fixed c...

Transportation Decision Making

Please show all work for this and explain your derivations. Lack of step-by-step work will not be credited. Partial credit will be given for step-by-step description of answer. In your own words, describe the meaning of average cost. You normally buy a crate of wine for $75. One crate has 6 bottl...

Basic Macroeconomic Definitions

1. "Crowding Out" occurs when: a) U.S. producers lose sales to foreign competition. b) An increase in taxes results in a lower level of consumption spending. c) Foreign interests buy government securities. d) Government borrowing forces up interest rates and reduces the level of private investme...

Economic Principles: GDP, Expenditure, and Federal Reserves

Section 1: 1. Distinguish between real and nominal GDP. Which one is a better measure of the business cycle? 2. What are the determinants of investment spending? 3. Why do managers need to be aware of how the price level and the level of unemployment are changing? 4. Why is it important that man...

Economic Terms and Limits of GDP Usefulness

For first year students using unfamiliar or finding the right terminology when asked to discuss certain aspects of a field of study can be challenging. Economics is no different from other professions that use certain abbreviations in which to explain segments of their specific field. GDP per capita...

Memory Tricks for Demand and Supply Curve Shapes/Elasticities

How do you remember the shapes and elasticities of demand and supply curves in Microeconomics? This solution helps you memorize the shapes of different curves in an easy to remember way. How do you remember how the axes are labelled for market equilibrium? This solution gives you an easy trick t...

Price of Currency: Canadian Dollar

Explain how each of the following will affect the "price" of the Canadian dollar. (a) The number of foreign tourists heading to Banff National Park in Alberta increases. (b) An American auto manufacturer buys $20 million in auto parts from a Canadian company. (c) Prices in Canada begin to f...

Concurrent Fiscal and Monetary Policy

Please can you help with this part of my revision: Imagine a standard aggregate demand and aggregate supply set-up. As you know, the British government has been reducing government expenditures to reduce fiscal deficit and government debt. A. Using this framework, show the effect on aggregate...

Market Structure for Tablets and Its Pricing Decision

Need help with revision question. Imagine the market for tablets (e.g. iPads), with downward sloping demand curve and upward sloping supply curve. a. Describe the market structure when iPad was introduced. In theory, how did Apple decide how much to produce and what price to charge? Describe in...

Calculation of Domestic Output and National Income

To the right is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. The results you obtain with the different metho...

Expected Value and Uncertainty

I need some help in these 4 questions of expected value and uncertainty: 1. Global Expansion/Making Decisions with Uncertainty: You're the manager of global opportunities for a U.S. manufacturer, who is considering expanding sales into Europe. Your market research has identified three potential...

Classical Theory and Keynesian theory.

Why is it important for a policy maker to understand the difference between the Classical theory and Keynesian Theory of Economics? Please highlight when each theoretical perspective is useful to employ.

The Fiscal and Monetary Policy and Economic Fluctuations

Discuss the current economic situation in the U.S. as compared to five (5) years ago. Include interest rates, inflation, and unemployment rate in your explanation. Explain the changes in interest rates, inflation, and unemployment rates that your research yielded. Explain one reason for each of the...

Examples of Two Mankiw's Ten Principles of Economics

a) Provide an example from your personal life of one of Mankiw's ten principles of economics. Briefly Explain and Discuss your example. b) Provide an example from your professional life of one of Mankiw's ten principles of economics. Briefly explain and discuss your example.

Determinants of Supply

What are the determinants of supply? How is the supply curve impacted by changes in determinants? What is the difference between a change in supply and a change in the quantity supplied and what are the causes of each?

Principles of Market Economics

You are running a small yard maintenance business for the summer. What do you expect to happen to the number of yards you can maintain in a day as you add workers if you don't purchase more capital equipment (like mowers and leaf blowers? _____________ What is a market economy? "If the amoun...

Computation of Opportunity Cost Including Demand and Supply Problem

Kaitlyn and Larissa have formed a dog bathing and grooming business. The number of dogs they can bathe or groom in any given day is depicted in Table 2.1. As they groom more dogs, the opportunity cost of grooming additional dogs _______ A) rises. B) falls.C) remains constant. D) depends on the pri...

Consumption of two goods and related taxes

The following figure shows that a tax on clothing can reduce the price of food. Suppose that after the tax on clothing consumption is imposed, another tax is levied on the consumption of food. For example, the consumption of both commodities would be subject to a tax of five percent. Describe the co...

Profit maximization

The owner of the car wash believes that the relationship between the number of cars washed and labor input is Q = -0.8 + 4.5L - 0.3L2, where Q is the number of cars washed per hour, and L is the number of people employed per hour. The firm receives $5 for each car washed, and the hourly wage rate fo...