Savings:

What will be an ideal response?


The accumulation of funds that results when people in an economy spend less that their income

Economics

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Using the IS-MP model, explain what happens to output and the real interest rate when the IS curve shifts to the right and when it shifts to the left, and when the MP curve shifts up and when it shifts down?

What will be an ideal response?

Economics

Which of the following statements is true?

A) Another name for capital consumption allowance is depreciation. B) When there are two consecutive quarterly declines in Real GDP the economy is said to be in recession (based on the standard definition). C) In the expansion phase of a business cycle, Real GDP rises beyond the recovery. D) a and b E) a, b, and c

Economics

Sulfur Dioxide Discharged (Tons)Firm AFirm B10$10,000$12,000911,00017,000813,00022,000716,00026,000620,00033,000Table 9.8 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If the two firms were to voluntarily trade pollution permits, how many permits would be swapped?

A. 0 B. 1 C. 2 D. 3

Economics

Using the HO model, assume that the United States is capital abundant and Mexico is labor abundant. If soybeans are capital intensive and avocados are labor intensive, it would be reasonable to expect the United States to

A) specialize completely in soybean production. B) specialize completely in avocado production. C) increase soybean production, but still produce some avocados. D) increase avocado production, but still produce some soybeans.

Economics