Remember that these responses are model answers and should be reworded and put
into your own voice. All material provided is to be combined with your own thoughts as
you prepare a final answer.
There are many dairy farmers in the world and also many Starb
1. Question :
In the United States and in most European countries, aging
populations and declining birthrates threaten public finances.
As the population ages, there are fewer workers paying taxes
relative to the number of retired people receiving
Topic 1: What is a personal brand?
Very simply - your brand is what people say about you. Your brand is not your logo, but rather, it
is how someone else describes you, your firm, your staff, and your offerings. It is important to
understand that your bra
DQ 1: The national income accounts measure productivity,
spending, and income; but these accounts were not designed to
measure economic welfare. Discuss aspects of economic welfare
ignored in GDP. HINT: Do a Google search on the Genuine
Describe an industry that would meet the conditions of a
perfectly competitive industry:
1. There are many buyers and sellers so neither side of the
market has market power.
2. The product provided to the market is identical across
Contrast the market demand/supply curves and the individual firms labor supply/demand curve
in a perfectly competitive labor market. How does the law of diminishing marginal returns affect
a firms demand for labor?
The market demand curve is downw
The Economist regularly publishes the Big Mac index to examine
the validity of purchasing power parity. If purchasing power
parity holds, a consumer should be able to take the same amount
of money required to buy a Big Mac in the U.S. and buy a Big Mac
3. There is always debate regarding the structure of the current
income tax system in the U.S. Many opponents of the current
system argue that under its current structure, many wealthy
households are able to avoid taxes and for most households, the
1. When a government wants to increase tax revenue, they will often
increase the sales tax on gasoline. Using price elasticity of demand,
explain why the tax would be placed on gasoline rather than, say, yachts.
What might be the long run effect of raisin
A. How does the concept of tradeoff relate to opportunity costs?
B. The difference between monetary and non-monetary opportunity costs
C. Why are opportunity costs based on a persons tastes and preferences
Trade-off, is the idea that when prod
1. Determine whether each of the following is counted in the M1 measure of the money
i. The coins in your piggy bank.
ii. The funds in your checking account at First National Bank.
iii. The funds in your savings account at Second National
In a perfectly competitive market, the
demand curve faced by a competitive firm
is perfectly elastic resulting from the fixed
price which is set by the market. Since the
market price is established by the
interaction of the demand an
A perfectly competitive firm has the following fixed and variable costs in the short run. The
market price for the firms product is $140.
Output FC VC TC TR Profit/Loss
0 $90 $ 0 _ _ _
1 90 90 _ _ _
2 90 170 _ _ _
3 90 290 _ _ _
4 90 430 _ _ _
5 90 590 _
1. Discuss the differences between unemployment and
underemployment and give examples of each. Which do you
think is a more serious problem for the economy? How
might underemployment be addressed through government
Must discuss these points: