Questions from General Economics


Q: Ace Manufacturing produces 1,000 hammers per day. The total

Ace Manufacturing produces 1,000 hammers per day. The total fixed cost for the plant is $5,000 per day, and the total variable cost is $15,000 per day. Calculate the average fixed cost, average variab...

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Q: Why is a slow growing economy a problem during a recession?

Why is a slow growing economy a problem during a recession?

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Q: What is the major economic problem during the expansionary phase of the

What is the major economic problem during the expansionary phase of the business cycle?

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Q: What should government do with its spending and taxes during a recession

What should government do with its spending and taxes during a recession? Why?

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Q: What should government do with its spending and taxes during an upturn

What should government do with its spending and taxes during an upturn in the business cycle? Why?

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Q: What should government do with the money supply to combat a recession

What should government do with the money supply to combat a recession? Inflation?

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Q: What are some examples of inferior products? Answer:

What are some examples of inferior products?

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Q: Why do most banks and credit card companies offer interest rates on

Why do most banks and credit card companies offer interest rates on their cards which vary with the current yield on newly issued U.S. Treasury bills?

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Q: Why did the high rates of inflation during the 1970s hurt Savings

Why did the high rates of inflation during the 1970s hurt Savings and Loans so much?

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Q: Why do most homebuyers hope for inflation? Answer:

Why do most homebuyers hope for inflation?

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