Assess component of gross domestic product 1. Why does an increase in the share of one component of gross domestic product (GDP) require a decrease in some other share? 2. What is the relationship between the consumption share and the real interest rate? 3. What is the relationship between the investment share and the real interest rate? 4. Explain carefully all the steps that relate […]

The importance of nonrivalry discussion help What is the essential difference between economic growth in the last 200 years and in the 2,000 years before that? 2. Why do capital and labor have diminishing returns? Why are economists so sure that technology played a big role in economic growth during the last 200 years? 4. Why does technology include different ways to organize a business […]

Order theories of economic fluctuations help Why do theories of economic fluctuations focus on aggregate demand rather than potential GDP as the main source of short-run economic fluctuations? 2. Why do theories of economic growth focus on potential GDP (with its three determinants) rather than aggregate demand as the main source of economic growth? 3. Why does the unemployment rate rise when real GDP falls […]

The discretion and rules debate questions Why are actual expenditures and revenues always different from the president’s proposals? 2. How is the government’s debt affected by the government’s budget surplus? 3. Why would a tax cut in a recession reduce the size of the recession? 4. Why might a proposal to cut taxes in a recession do little to mitigate the recession? 5. What is […]

The difference between a stock and a bond What is the difference between physical capital and financial capital? 2. How is the relationship between the marginal revenue product of capital and the rental price related to the firm’s decision to rent additional units of physical capital? 3. Why is the quantity of physical capital demanded negatively related to the rental price of capital? 4. How […]

comparative advantage a dynamic concept What is the difference between absolute advantage and comparative advantage? 2. What is the difference between the production possibilities curve before trade and after trade? 3. In what sense is comparative advantage a dynamic concept? 4. Why might costs per unit decline when the market increases in size? 5. What is the difference between inter-industry trade and intra-industry trade? 6. […]

Order Economic model assignment Think about how you would construct a model of how your college is governed. Which officers and administrators would you include and exclude from your model if the objective were one of the following: a. To explain how decisions on financial aid are made b. To explain the quality of the faculty Relate this to the map example in the chapter. […]

Discussion on the government of Indonesia Discuss the resource limitations that affect a. the poorest person on earth b. Bill Gates, the richest person on earth c. a farmer in Kansas d. the government of Indonesia 2. If you were president of your college, what would you change if your budget were cut by 10 percent? By 25 percent? By 50 percent? 3. If you […]

Discuss stabilization policy assessment policy versus (short-run) stabilization policy. 2. Explain why economic growth might be higher in a country with well-established property rights and a stable political system compared with a country where property rights are uncertain and the government is unstable. 4. Explain why the best educational policies to promote faster growth might be different in the following countries. a. Mozambique b. Brazil […]

Discussion on final goods and intermediate goods Explain the difference between final goods and intermediate goods. Why is it sometimes difficult to apply this distinction in practice? In this regard, why is the concept of value added useful? 2. Explain the difference between government spending and government purchases of goods and services (G). Which is larger? 3. Explain why national income and gross domestic product […]