Economics Homework - assignment

Macroeconomics: Assignment # 11.  Define Economics. Distinguish between Microeconomics andMacroeconomics.2.  State against each of the following sentences whetherthey belong to micro or macro economics:-a) The U.S. GDPregistered a growth rate of 1.8% in 2013.b) The U.S.unemployment rate stood at 6.7% in Dec. 2013.c) Compared to Fall  2013, in Spring 2014, the student enrollment atMSU increased by 5%.d) In 2013,  the U.S. inflation rate was 1.5%.e) Castle Toyota, a cardealer, retrenched 5 of its workers in Jan. 2014.f) Adverse weatherconditions damaged the tomato output and raised its price. 3.  What are the goals of macroeconomic policies?4.  What were the factors that led to the civil war?5.  Discuss briefly the causes and consequences of the greatdepression?6.  Write short notes on: a) The great expansionb) The great recessionc) Kennedy Tax Cuts  d) Business Cycle andits different phasese) Stagflation7.  List 5 factors that contributed to the emergence ofU.S.A, as the largest economy of the world.8.  What are the key economic problems? How are theyaddressed by different economic systems?9.  Alice has $100 to spend on CDs and DVDs. A CD costs $10,and a DVD costs $20.a) Construct anopportunity set.b) Draw a budget linewith DVDS measured along the horizontal axis.c) Find the slope ofthe budget line.d) If Alice has moremoney to spend what will happen to the budget line? e) If the price of theDVD falls to $10 a piece, what will be the slope of the new budget line?10.  John purchases apples and oranges. Price per lb ofapples and oranges are  $2 and $1respectively.IfJohn measures apples along the horizontal axis, what will be the slope of hisbudget line?11.  A country has the following production possibilities:Type of goods  ProductionPossibilities  A  B  C  D  E  0  5  10  15  20  10  9  7  4  0Consumer goodsCapital goodsIf the country is at point C, what is the opportunitycost of producing an extra unit of a) Capital good  b) Consumer good c) How will furtherincrease in the production of capital/consumer goods affect the opportunitycost?  12.  Account for the law of increasing opportunity costs.13.  a)  What isdemand? b) State the law ofdemand. c) Draw a demand curve?d) What do movement alongthe demand curve and shift in demand curve indicate? e) List four factorsthat cause shifts in the demand curve?  14.  What will be the effect of each of the following ondemand for  SUVs:-a) SUVs become morepopular.b) Gas pricesubstantially increases.c) A recession hits thecountry.d) Newspapers reportlarge number of fatal accidents involving small cars.15.  a)  What issupply?b)  State thelaw of supply.c)  Draw asupply curve.d) What do movementalong the supply curve and shift in supply curve indicate? e) List four factorsthat cause shifts in the supply curve?  16.  What will be the effect of the following on supply ofauto tires?a) A technologicaladvance in the method of producing tires.b) An increase in theprice of rubber.c) Levying of a per unittax on tires.d) Expected fall intire prices.17.   WheatMarketThousandsof bushels demandedPriceper bushel ($)Thousandsof bushels suppliedAmountof Surplus(+)/Shortage(-)90350804607057060680a)  What is the equilibrium price?b)  What is the equilibrium quantity?c)  At a price of $3 per bushel, what will be the surplus/shortage? What will be its consequence on price?d)  At a price of $6 per bushel, what will be the surplus/shortage? What will be its consequence on price?   18.  If  Qd = 6-P,  and   Qs=-2+P,  find the equilibrium price andquantity.    19. What does happen to the housing market when rent control is imposed?Show with a diagram.       20.  Draw a circular flow of income diagram, andexplain its various flows.