Macroeconomics

According to the case for analysis (Demand and Supply in the Copper In

According to the case for analysis (Demand and Supply in the Copper Industry) in the text, all of the following can lead to a decline in the price of copper except: A) steady production uninterrupted by labor strikes or natural disasters. B) substitution away from copper to other materials such as aluminum and plastic. C) […]

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Date: September 10th, 2020

Why are isoquants negatively sloped? A) Along a single isoquant, the

Why are isoquants negatively sloped? A) Along a single isoquant, the firm can substitute the use of one input for another while holding the total level of output constant. B) Due to the effects of diseconomies of scale. C) Because the farther the isoquant is from the origin, the higher the level of output. D) […]

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Date: September 10th, 2020

Which of the following is not cited as one of the factors that account

Which of the following is not cited as one of the factors that accounts for the large-scale production that exists in many sectors of the economy? A) Economies of scale. B) Advertising and image differentiation. C) The minimum efficient scale of operation in many industries is quite high relative to market demand. D) Risk spreading. […]

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Date: September 10th, 2020

List and describe the sources of spending in the economy by focusing o

List and describe the sources of spending in the economy by focusing on the four major sectors of the economy. What will be an ideal response?   ANSWER The four major sources of spending in the economy include consumption spending, which is spending by households on durable and non-durable goods and services; gross private domestic […]

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Date: September 10th, 2020

Assume a consumer is currently purchasing a combination of goods, X an

Assume a consumer is currently purchasing a combination of goods, X and Y, that maximizes her utility given her budget constraint, i.e., MRSX,Y = PX/PY. Now assume that there is a decrease in the price of Y. In this case, to once again maximize her utility, the consumer will want to adjust her purchases of […]

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Date: September 10th, 2020