Pernille von Ubisch Dr. Nagy ECON 337 11/04/15 Assignment 3 The United States’s current account deficit is a result of United States expenditure exceeding income. With an increasing government budget deficit, an increasing trade deficit, in addition to little national saving, the United States is dependent on large inflows of money from other countries. In other words, by running a current account deficit, the United States need to run a surplus on the financial and capital account in order for
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Chapter 1 1. Ideas for beyond the final exam a. How much does it really cost? i. Opportunity Costs 1. Value of the next best alternative that must be given up because of that decision. 2. Economists say that the true cost of such decisions are not the number of dollars spend on the computer, new equipment, or military, but rather the VALUE OF WHAT MUST BE GIVEN UP TO ACQUIRE THEM. 3. EXAMPLE- cost of college is more expensive add the money
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Last decade, an alternative energy - ethanol is started to be produced in order to be an alternative to oil consumption. Since fuel ethanol industry is based largely on corn, what would be the effect of ethanol production on food prices? In previous decades, corn has been sold cheaply. Now that the ethanol industry is beginning to arise, farmers are able to make more profit as corn prices are increasing. There is a distinction between the use of corn for food and it's use for fuel. Ethanol is
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Research Paper The Effects of the Great Recession on the Auto Industry Submitted by Luis A. Castro Prepared for Professor John Machnic BUSN 6120, Managerial Economics Summer 1, 2012 Section: OE Webster University July 24, 2012 CERTIFICATE OF AUTHORSHIP: I, Luis A. Castro, certify that I am the author. I have cited all sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by
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Chapter 01 Limits, Alternatives, and Choices QUESTIONS 1. What is an opportunity cost? How does the idea relate to the definition of economics? Which of the following decisions would entail the greater opportunity cost: Allocating a square block in the heart of New York City for a surface parking lot or allocating a square block at the edge of a typical suburb for such a lot? Explain. LO1 Answer: An opportunity cost is what was sacrificed to do or acquire something else. The condition
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The Evolving Economic Power of the Internet The Ever Evolving Economic Power of the Internet It can be agreed upon by many, that the internet is considered one of the most significance advances man has offered to economics. Using the internet, we have connected the entire world into one global economy. Businesses are now capable of conducting transactions with businesses in any location in the world. A firm can reach out to potentially millions of customers in other countries
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GRAPH 1 : Monetary Base (Source: St Louis Federal Reserve Bank FRED) Monetary Base – the sum of the Fed’s monetary liabilities (currency in circulation and reserves) and the U.S. Treasury’s monetary liabilities (Treasury currency in circulation, primarily coins). (Mishkin, 396) There has been a steady insignificant increase (practically absent) in the size of monetary base over the period of 2004-2008. However, during the mid of recession (indicated by the shaded area on the graph) there
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1. List the three largest categories that make up the market basket that is used to compute CPI The 3 categories are housing at 43%, transportation at 17%, and food and beverages at 15%. 2. Suppose the market basket of goods and services purchased by an average urban household consists of only X, Y, Z, three consumer products. Calculate the CPIs for each year and the inflation rate for the Year 1‐Year 2 period. CPI: Year 1- 100, Year 2- 118.18 Inflation Rate- 18.18% The formula for CPI
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1. a. When the new video game console is released, there is an excess amount of demand and a limited amount of supply, and this is where the shortages come from. At first, the price will remain constant for a while until the demand lessens. Due to this, distributors now have a high amount of supply, and to get rid of this excess amount, they have to make a price cut so consumers will buy the product. This final outcome is not necessarily the fairest outcome because all of the suppliers were able
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David Lenz Macroeconomics: Science or Not? After reading both articles about macroeconomics and whether it is a science or not, I am intrigued by both writers’ ideas. In the article, “What is economics good for?” by Rosenberg and Curtain, they discuss that economics should not be considered a science but instead a craft, saying that “the Chairman of the Federal Reserve must, like a first violinist tuning the orchestra, have the rare ear to fine-tune complexity (Rosenberg and Curtain, 1).”
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