Assume that a country has a domestic demand curve defined as Qd = 100 - 2P and a domestic supply curve defined as Qs = -20 + 3P. What is the autarchy equilibrium price and quantity?
What will be an ideal response?
100 - 2P = -20 + 3P => P = 120/5 = 24 and Q = 52
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Which of the following is NOT considered an example of a capital good?
A) a miner's cap B) a GPS tracking device C) an airport kiosk D) a U.S. government bond E) a stethoscope
The market demand function for wheat is Qd = 10 - 2P and the market supply function is Qs = 4P - 2, both measured in billions of bushels per year. Suppose the government wants to increase the price of wheat to $3/bushel and they impose a price floor to achieve their goal. What is the size of the aggregate surplus?
A. $4 billion B. $8 billion C. $10 billion D. $12 billion
Suppose the real GDP in an economy in the year 1999 was $2,000 and the total population was 500 . The economy experienced a 5% growth in real GDP and a 2% growth in its population in 2000 . Calculate the change in per capita income of the economy during this period
a. +1% b. +2.5% c. -3% d. +3% e. -4%
Private saving is positive when:
A. the government's budget is balanced. B. there is a government budget surplus. C. there is a government budget deficit. D. after-tax income of households and businesses is greater than consumption expenditures.