If an economy wants to experience economic growth, what decision must it make and carry out? Explain.
What will be an ideal response?
People in the economy must decide to consume fewer goods and services in the current period, and to invest those resources into greater productive capacity for the future. This can be in the form of more capital stock, better training for workers, or improved technology.
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Consumer surplus is
A) the total difference between the total amount that consumers actually pay for an item and the total amount that they would have been willing to pay. B) the total difference between the total costs firms incur in producing an item and the utility consumers derive from purchasing the item. C) the total difference between the total amount that consumers would have been willing to pay for an item and the total amount that they actually pay. D) the total difference between the utility consumers derive from purchasing an item and the total costs firms incur in producing the item.
For which pair of firms would a merger be horizontal?
a. Avis Car Rentals and United Airlines b. Coca-Cola and Nike c. Barnes and Noble and Borders bookstores d. Dominos Sugar and Dominos Pizza e. Samuel Adams Beer and Samsonite Luggage
A bushel of apples costs $15.00 in the U.S. The same apples cost 1,600 yen in Japan. If the exchange rate is 80 yen per dollar, is there a possibility for arbitrage? Explain and defend your answer. As part of your defense, find the real exchange rate
Considering the roughly $1.35 trillion in U.S. currency held by the public:
A. the Federal Reserve distributes the amount equally across all denominations of bills. B. over half of the currency held in the form of $20 bills. C. over 90% of the amount is held in the form of $1 bills. D. more than three-fourths is held in the form of $100 bills.