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Economics

josh
December 17, 2015 0 Comment

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Refer to the diagram which is based on the Circular Flow Model in Chapter 2. Arrows (3) and (4) represent

How do the different economic systems (capitalism and socialism) differ in the way they answer these three questions – What to produce? How to Produce? and for whom to produce.

Explain how “Black Markets” impact economic actives: Please explain in detail and use a supply and demand graph for your examples

Suppose a war breaks out in the Middle East, which raised the price of gasoline in the United States. How would this impact the supply and demand for gasoline in the Unites States? Please illustrate using a graph and explain in words.

Suppose that a company invents a better machine for mixing the ingredients to make chocolate candies. What would happen to equilibrium price and quantity in the market for Godiva chocolate? Be able to draw the graph that illustrates your answer.

Suppose that the price of Hershey’s chocolate increases. What would happen to equilibrium price and quantity in the market for Godiva chocolate? Be able to draw the graph that illustrates your answer.

Macroeconomics

A    B    Answer
Which one of the following will be an automatic stabilizer    A.    Board of Governors and the 12 Federal Reserve Banks

GDP is the market value of    B.    Structural
A decrease in government spending will cause    C.    Real GDP is adjusted for changes in the price level.
An increase in aggregate demand is most likely to be caused by a decrease in    D.    Price of one nation’s currency in terms of another nation’s currency
Which is one of the three types of unemployment    E.     Two countries are comparatively able in producing what they need, however choices to engage in international trade
The Federal Reserve System consist of how many members and how many locations    F.     People receive loans from their banks.

Foreign exchange rates refer to the    G.    Real GDP.
Money is “created” when    H.    Discount Rate
Fiscal policy is enacted through changes in    I.       Private investment is crowded out by public spending
The tools of monetary policy for altering the reserves of commercial banks are the
J.      All final goods and services produced in an economy in a given year.

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