Consumer and producer surplus
What is the differences between consumer surplus and producer surplus? And how are they measured?
What is the differences between consumer surplus and producer surplus? And how are they measured?
How does a bond issuer decide on the appropriate coupon rate to set on its bonds? Explain the difference between the coupon rate and the required return on a bond.
Research and analyze two companies competing in the same category- one that genuinely incorporates sustainability marketing into its operations and one that either does not do any sustainability marketing or that only superficially does so. Compare consumer perceptions of their respective brands, and predict the companies’ relative long-term competitiveness in that category.
Coffee suppliers have been dealing with shortage due to coffee leaf rust and drought. Therefore, there are some changes in supply and demand of this product, people is starting consuming tea as a substitute. How would you illustrate this change graphically in terms of supply and demand ? Describe it.
a. Explain why the law of demand applies to food just as it does to all other goods and services. b. Explain how the substitution effect influences food purchases and provide some examples of substitutions that people might make when the price of food rises and other things remain the same. c. Explain how the …
The price of food increased during the past year Read More »
Some people say that since inflation can be reduced in the long run without an increase in unemployment, we should reduce inflation to zero. Others believe that a steady rate of inflation at, say, 3 percent, should be our goal. What are the pros and cons of these two arguments? What, in your opinion, are …
Long-run goals for reducing inflation and unemployment Read More »
How important is the division of labor to a capitalist economy? How does the division of labor lead to more efficient production? What are some examples of division of labor and specialization from your personal experiences?
The U.S. economy relies heavily on international trade. Choose two transactions at random that result from international trade; one where purchases are made from another country and one where the U.S. sends a product to another country. Identify the impact of each of these on imports, exports, net imports, and net exports at the time …
What is the effect of a fiscal expansion on output and interest rates when exchange rates are fixed and capital is perfectly mobile?
Using real-world examples, evaluate the view that a rise in inflation rate will always result in negative consequences for the economy.