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Q: Economics ( Answered,   1 Comment )
Question  
Subject: Economics
Category: Business and Money > Economics
Asked by: jenkohl-ga
List Price: $30.00
Posted: 07 Apr 2005 10:57 PDT
Expires: 07 May 2005 10:57 PDT
Question ID: 506350
Explian a "determinant of demand" and which determinants of piizza
demand change when the White House is in crisis.

What would happen in the apple market if the government set a minimum
price of $2.00 per apple? What might motivate such a policy?

How might the following government interventions affect a nation's
economic growth? a) Mandatory school attendence  b) High income taxes 
c) Copyright and patient protection  d) Political corruption

If gross investment is not large enough to replace the capital that
depreciates in a particular year, is net investment greater or less
than zero? What happened to our production possibilities?

Which is more damaging to the economy: demand-pull or cost-push inflation? Why? 

What factors might cause consumers to spend more of their income on
goods and services, thereby shifting the AD curve rightward?

What events might change consumer confidence and what effect would
this have on aggregate demand?

What is the rationale behind the term of service given to a Chairman
of the Federal Reserve Board? Currently, this position is held by Alan
Greenspan.

Explain fiscal policy or monetary policy as an analogy to a gas-combustion engine.

Summarize the basic principles behind "supply-side" economics.
Answer  
Subject: Re: Economics
Answered By: wonko-ga on 12 Apr 2005 08:20 PDT
 
A. determinant of demand is a factor determining the market demand for
a good or service.  When the White House is in crisis, more people are
working late, which expands the size of the market for pizza.

The price, being higher than the current market price, would decrease
demand while increasing supply.  The government could implement such a
policy to support farm incomes, which are otherwise in decline because
demand is growing slower than supply created as a result of new
technologies.

a) increase b) decrease c) increase d) decrease.  Each of these
factors either increases or decreases an individual's incentives or
abilities to perform productive work.

Net investment is less than zero.  The economy decreases its ability
to produce because equipment is being used up faster than it is being
replaced Kurz.

Cost-push inflation is more damaging because it occurs during periods
of high unemployment and slack resource utilization.  In contrast,
demand-pull inflation occurs with low unemployment.  However, rampant
demand-pull inflation caused by money-supply growth can also be
extremely devastating to an economy.

Belief that their jobs are secure, cheap credit, and increasing gains
in stock market and/or housing wealth.  These are factors that could
lead consumers to feel that they can afford to save less.

Terrorist activities, rising unemployment, rising interest rates, and
war are all factors that can adversely affect consumer confidence,
thereby decreasing aggregate demand.  Rising housing prices and stock
markets, decreasing unemployment, and decreasing interest rates can
positively affect consumer confidence, thereby increasing aggregate
demand.

The idea is to insulate governance of the Federal Reserve and
interest-rate policy from short-term political considerations.

Both fiscal policy and monetary policy act as a source of fuel to the
economy that is represented by the engine.  "What Is Fiscal Policy?"
by Reem Heakal, Investopedia.com (May 19, 2004)
http://www.investopedia.com/articles/04/051904.asp

"Supply-side economics.  A view emphasizing policy measures to affect
aggregate supply or potential output.  This approach holds that high
marginal tax rates on labor and capital incomes reduce work effort and
saving."  (Page 747)

Source: "Economics" 14th edition by Samuelson & Nordhaus, McGraw-Hill Inc. (1992)

Sincerely,

Wonko
Comments  
Subject: Re: Economics
From: professorman-ga on 07 Apr 2005 12:46 PDT
 
If you really want answers to these questions you will probably have
to raise your offering price considerably. I can tell you, as an
Economics professor, that the information that you are lookng for
generally takes about 10 weeks to cover in depth. The Google
Researchers can answer your questions in more detail than you can
probably ever imagine, but that kind of knowledge costs money. I would
expect AT LEAST 2 hours of time if not more would be sufficient to
answer these questions. You may want to try pricing your question
accordingly.

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