Write down your understanding and interpretation for each of the following equations, then make sure that you familiarize yourself with these formulas: NS = SP + SG = GDP – C – G, in a closed economy
What will be an ideal response?
Answer: National Savings (NS) is the sum of private savings plus government savings, or NS=GDP – C – G in a closed economy. To see this remember that SP = Y – C – (T – TR) and SG = (T- TR) – G. So, SP + SG = Y – C – (T – TR) + (T – TR) – G = Y – C – G.
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Allegiant Air holds a natural monopoly on most of the routes it serves in the United States. Allegiant Air ________ operate on the ________ portion of its demand curve when total revenue is ________
A) will always; elastic; increasing B) will usually; elastic; decreasing C) will never; elastic; increasing D) will always; inelastic; increasing E) will never; inelastic; increasing
When demand increases in a perfectly competitive market, in the short run ________, and in the long run ________.
A. quantity supplied increases; prices increase B. quantity supplied decreases; prices decrease C. prices increase; supply increases D. prices increase; prices stay permanently higher
The Smoot-Hawley trade bill of 1930, designed to save jobs and increase revenue for the federal government, resulted in
What will be an ideal response?
If the price elasticity of supply is elastic, which of the following could be a possible value of the elasticity?
A. 3 B. 1 C. 0.3 D. 0