Write down your understanding and interpretation for each of the following equations, then make sure that you familiarize yourself with these formulas: GDP = C + SP + (T – TR)
What will be an ideal response?
Answer: Total Income= Consumption Spending + Private Savings + Net tax payment
Alternatively, private savings in a closed economy can be expressed as total income plus government transfers minus taxes and consumption, SP =GDP + TR – T – C
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Starbucks sells coffee in both New York City and in rural upstate New York. The price of coffee is higher in New York City
This fact means that the value of marginal product of land is ________ in New York City and so Starbucks is willing to pay a ________ rent in New York City. A) lower; lower B) higher; lower C) lower; higher D) higher; higher
Consider a market with inverse demand p = 100 – 2Q. Firms have no fixed cost and constant marginal cost c
a. Derive the firms' outputs and profits when this market is served by Cournot duopolists. b. How do outputs and profits vary with c? Specifically, use calculus to find the derivative of the output of each firm and profit of each firm with respect to c. c. Suppose the firm's also have a fixed cost of F in addition to the marginal cost c. How does F alter the best response functions and NE? Explain in words. (For technical reasons, assume that both firms still produce a positive level of output in equilibrium)
The Federal Reserve System is divided into:
a. 2 districts. b. 12 districts. c. 26 districts. d. 50 districts. e. 1 district.
On which point on the graph above should the economy operate if it wants to maximize its future production possibilities?
a. A b. B c. C d. D