Define gross domestic product
Define gross domestic product (GDP). How is GDP measured? What is included in GDP? What is not included in GDP? What is the difference between real GDP and nominal GDP? What does real GDP measure?
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What is an economic model? How do economists use these models? What is the difference between an endogenous variable and an exogenous variable? Give me a simple mathematic model that expresses real world relationships.
Now assume that there is a dominant firm, whose marginal cost is constant at $6.00. Derive the residual demand curve that it faces and calculate its profit-maximizing output and price.
Draw the circular flow diagram of income and expenditures. Include the demand sectors C, I, and G; the flow(s) of real goods and services; the flow(s) of income ; and the flow(s) of spending.
Is it better to be born with a 65 year old single mother than not to exist at all? Is this a fair question? What is wrong, if anything, with the way this question is asked?
We spent considerable time discussing the consumer price index (CPI). What is the CPI? How is it constructed? What is it used for? Compare the CPI to the GDP Deflator.
Identify and discuss at least two arguments that support trade restrictions and two against trade restrictions. Use at least one example for each argument. Which arguments do you agree with and why?
I. Plan A. Analyze the Situation
What does it mean to be unemployed? How is the unemployment rate calculated? What are the sources of unemployment in the economy? (types of unemployment). What are the costs to the economy of unemployment?
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