Chapter 12 - Money and Banking in the Developing Economy Bimetallic Standard - A monetary system in which a government recognizes coins composed of gold or silver as legal tender. The bimetallic standard backs a unit of currency to a fixed ratio of gold and/or silver. Central Bank - A public institution that manages a state’s currency‚ money supply & interest rates. Central banks also usually oversee the commercial banking system of their respective countries. Recession - A period of slow
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Chicago to Raise Cigarette Tax Source: Chicago Sun Times Accessed: November 23‚ 2013 Posted: November 21‚ 2013 Word Count: 748 Written: November 25‚ 13 Microeconomics The city council in Chicago‚ Illinois is discussing a raise to the tax on cigarettes in an effort to cut the amount of people who start smoking each year. This type of tax is called a Pigouvian tax (meant to limit consumption of a good). Currently‚ the cigarette tax has been stuck at 68 cents a pack since 2006 and the
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Cyclone devastates Australia’s banana crop- Practice IA Introduction to theory: Demand and supply are basic economic theories that can help the government and producers make informed decisions like how much to produce‚ and the price they set for products. Connection to article: The recent Cyclone Larry has affected crops in Australia‚ decreasing their supply of bananas drastically‚ as well as causing a decrease in the employment of workers in the banana industry. Analysis: Demand is the curve that
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6.1a) A monopoly is facing the demand and marginal cost curves which is P = 12 - 0.002Q and MC = 3 + 0.001Q. When the demand curve is P = a- bQ‚ the marginal revenue curve will be MR = a- 2bQ ‚ therefore‚ MR = 12 - 0.004Q.(Refer to figure1) Figure 1 To maximize the profits‚ the company should produce at the output level where marginal revenue is equal to marginal cost. If the marginal revenue is higher than marginal cost‚ the firm can increase profit by producing more. If
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STUDY GUIDE – MIDTERM EXAM – SSCI 165 Terms: --Spatial --Functional Specialization --Scale --Agrarian & Industrial Revolutions --Realm --ASEAN --Region --Supranational Organizations --Formal & Functional Region
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1. What do economists mean when they state that a good is scarce? a. There is a shortage or insufficient supply of the good at the existing price. b. It is impossible to expand the availability of the good beyond the current amount. c. People will want to buy more of the good regardless of the price of the good. d. The amount of the good that people would like exceeds the supply freely available from nature. 2. Which of the following is most clearly consistent with the basic guidepost
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1. The following table shows the average retail price of salted grade AA butter per pound and the Consumer Price Index from 1980 to 2000‚ scaled so that the CPI = 100 in 1980. | 1980 | 1985 | 1990 | 1995 | 2000 | Consumer Price Index | 100.00 | 130.58 | 158.56 | 184.95 | 208.98 | Retail Price of Butter | $1.88 | $2.12 | $1.99 | $1.61 | $2.52 | a. Calculate the real price of butter in 1980 dollars. Recall: Real Price of butter in Year t=CPI1980CPIt×Nominal Price in Year t For Example:
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As an employee of the World Bank‚ you have been asked to research 1 economic concern in a South American country and write a report on your findings. Select a South American country to research. Select one of the following economic concerns to research: Quantities of specific goods and services Gross Domestic Product (GDP) Unemployment Inflation Research data sets for the 1 economic concern within the South American country that you have chosen. In a 3–4 page report‚ answer the
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6. To fully explain the multiplier effect‚ we need first to define the Injections and Withdrawals‚ preferably through the model of Circular flow of income: It is a simple economic model describing a circulation of income between producers (firms) and consumers (households.). It consists of direct inner flow between firms and households and outer flow. The outer flow is caused by the fact that households do not spend all of their income on consumption; part of their income is withdrawn as net
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Explain why government regulation is needed‚ citing the major reasons for government involvement in a market economy. In the beginning there was no intention for the government to have a hand in business. The government wanted businesses to act on their own best interests without any involvement from the government. Regulation was brought about to enhance the public and take care of those that have lost or investigate those who have cheated. For many years there was no government regulation and
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