Supply and Demand and English Literature
Should the government build more shelters for the homeless? Where will it get the resources to do so? I think that the government should build more shelters for the homeless people. The reason that I think the government should build more shelters is that if they are not giving people jobs than they should give them houses to stay because everybody is equal. For example when Hurricane Sandy hit the north the government had shelters to provide a place for the homeless. However if a bigger hurricane hits then the government will need more shelters. 2. Why do we measure output in value terms rather than in physical terms?
Because things can be measured in different forms such as ton, cubic, piece etc. Converse these forms based on prices we will have a comparable value, in dollar term. The outputs are in different unit of measure. For example, a house, a car, a cow etc. To sum them up, we have to change them to the same unit of measure. That’s in dollar term. 3. What does the supply and demand for human kidneys look like? If a market in kidneys were legal, who would get them? How does a law prohibiting kidney sale affect the quantity of kidney transplants or their distribution?
As of this day in the US, 87,939 people need kidney transplants. In 2010, only 15,430 people received kidney transplants. That’s not too good. The main problem is that not enough people are registered as donors. If the market were legal, only the wealthy would be able to get one, and that is the problem. Who in the world would sell a kidney for $150 to a poor person when a rich person would pay $150,000 or more for one? That is why it can’t be made legal; it hurts everyone who is not rich. 4. If all soda advertisement were banned how Pepsi sales would be affected? How about total soda consumption?
If all soda advertisements were banned, Pepsi sales would not be affected. They cut their advertising budget in the last several years because they realized they would never be able to catch up with Coke. Also if Pepsi doesn’t advertise their product they would save millions a year. Pepsi also doesn’t have to do a lot of advertisement because they are already known all over the world so it wouldn’t affect their product. 5. What are the fixed input constraints that limit worker productivity in the typical fast-food outlet? No, it is still be added as a cost, but it’s called implicit cost or the costs which have been never paid.
This makes economist more sense than accountants as a thinker. This question reflects a lack of understanding of the small business as a lifestyle choice. Get your head out of the big business clouds a minute and look at this as cash basis accounting rather than accrual accounting. When you have a few people in the family and the income comes out of the station, why would you pay yourself an hourly wage? By the Way, gas doesn’t make money. The store does. And you probably have to run several stores to get a decent retirement. 6. What industries do you regard as being highly competitive?
Can you identify any barriers to entry into those industries? The Fast Food Restaurant industry is very competitive in the US. Barriers to entry; 1) The biggest is obviously the government in the form of local and state health boards, food inspectors, and nationally the FDA. 2) Start up cost: (a) buying everything you need, (b) getting through the initial months that will inevitably slow while you gain a reputation. 7. If you owned the only bookstore on or near the campus what would you charge for you economics book? If I owned the only bookstore on or around a campus I would raise the price of all the books.
The reason that I would raise the price is that there are a lot of students there and most of them don’t have a car, so they have to take the bus and pay. So they don’t have to pay for the bus, but just pay more for the book. This is a good business because most students also don’t have time to go buy a book at a far bookstore. 8. Why are professors of computer science paid more than professors of English Literature? Professors of computer science are considered in higher demand than those of English literature. The knowledge base for computer sciences is being changed constantly so the need for instruction is greater.
Also to be a scientist you need to be smart and most people are smart but are lazy to do the job. So whoever is smart and ready takes the science job and whoever is smart and lazy take English literature. 9. Why should taxpayers subsidize public colleges and universities? What eternal benefits are generated by higher education? If you subsidize public colleges, the supply curve of public college education would shift to the right, thus making public colleges cheaper. With public colleges cheaper, the demand for private colleges would decrease, making private colleges cheaper.
So as a result of subsidizing public colleges, you make public and private college education cheaper. Also For the same reason why they pay for public schools even if they don’t have kids who go to them – because everyone benefits from the knowledge they gain after they graduate. I’ve never needed the fire department’s help. Does that mean my tax dollars shouldn’t go to fund them? 10. Could we ever achieve an unemployment rate below “full” employment? What problems might we encounter if it did? That’s impossible. A 0% unemployment rate would mean every single to-age worker has a job.
There couldn’t possibly be a negative rate since every worker has a job, there is a job for every worker. a -% unemployment rating could only happen if there was a surplus of jobs, but there would never be a surplus of jobs, with too few laborers. This is against every sensible judgment when running a business, it’s unsustainable. What business wants to create jobs it knows it will never fill? 11. What kind of external shock would benefit an economy? An increase in price of an export or decrease in price in an export would benefit an economy.
If the changes were significant enough, they could have an extreme impact on the economy in Question. Also a drop in price of a major import. An increase in price of a major export. Availability of a new labor-saving technology. An influx of cheap labor from abroad. 12. How long does it take you to spend any income you receive? How would you spend it? It depends on what my income is. For example if i get 10 dollars a day then I would spend 2 and save 8. If you spend 2 and save 8 then you have a good chance of succeeding in USA. i would spend it on food and entertainment. 13.
Have you ever borrowed money to buy something (car)? In what form did you receive the money. How did your loan affect the money supply? Aggregate demand? I borrowed money from my cousin last year to buy a car. I received the money in a check. My loan did not supply my money supply. 14. Why do banks want to maintain as little excess reserves as possible? Banks usually choose not to keep reserve because the money that you deposit is being loaned out. When the bank loans out its customers’ money it makes an overall net gain or profit. This is what keeps banks in business and is also why you receive an interest on your deposit.