Macroeconomics questions

AT&T it represents economic systems because the check wasnt creation spent on consumption goods. ) Your roommate earning $100 and depositing it into her banking bon ton billhook also represents saving because the specie wasnt spent on consumption goods. D) espousal $1000 from the bank to buy a rail automobile to use in your pizza lecture business represents Investment because the car Is a heavy(p) good. Page 295 query 2 a) People get the benefit from the market place of restitution not to eliminate the risks but to afford them around to a greater extent efficiently. ) Two problems that block off indemnification companies from working perfectly and their ability to spread risk ar unfortunate election and moral endangerment. Adverse woof is when a regretful soul is more(prenominal) likely to apply for redress than a low-risk person because a high-risk person would benefit more from indemnity protection. clean-living Hazard is how after mountain buy insuranc e, they devour slight bonus to be c beful about their risky style because the insurance company entrust back much of the resulting losses.Page 295 incertitude 5 Determine the companies gross sales r tied(p)ue and number of stocks, and looking at the authority growth or weaknesses that may be facing the company. Health insurance could be an adverse selection because if its a person who has more wellness problems than the average vigorous person they would benefit more from the insurance protection. A moral hazard for health insurance would be if after people got health insurance they stopped taking care of their health as well because they get they thunder mug fall back on the insurance.Car insurance could be an adverse selection if a person has an unsafe car or a record of bad tearaway(a) they would be at higher-risk and benefit more from insurance protection. People who Just get car insurance could be a moral hazard because they know the insurance will cover a majority of their losses so they will stop driving as carefully. Chapter 1 5 unbeliefs Page 318 fountainhead 3 a) frictional un work results because it takes time for workers to search for the jobs that best suit their tastes and skills.Frictional unemployment is needful because frictional employment is often the result of changes in the contain for boil among different self-coloreds. in that location could also be changes in the composition of demand among industries or regions called blue shifts that cause temporary employment while workers are in pitch contour to search for Jobs in new sectors. Simply put, frictional unemployment is inevitable because the thrift is always changing. People also leave in that location Jobs to search for Jobs that bankrupt suit their skills which also causes some frictional unemployment. ) If the political sympathies wanted to trend frictional unemployment they could have skills development seminars in say to ease the regeneration of workers from declining to growing industries. They could also have employment agencies to see the unemployed jab to Jobs that match their skill set. Page 318 Question 7 A firm could growth its profits by raising the compensation it pays because better salaried workers are healthier and more productive, worker swage is reduced, the firm can attract higher quality workers and worker enterp acquire is increased. Age 319 Question 7 a) If manufacturing workers formed a union, I would look for that the wage would rise and the quantity of take demanded would decrease. Because the wage is higher, the quantity of get the picture supplied would increase, so in that respect are unemployed workers in the unionized manufacturing sector. B) When the workers move around unemployed in the manufacturing sector they will seek employment in the military service restriction market. The result of a larger tot of labor results in a lower wage in the unionized service sector and an increase in empl oyment.Chapter 16 Questions Page 345 question 2 Intrinsic care for government agency that the item would have value even if it were not use as cash such as gold. orderliness funds is bills without intrinsic value that is used as money because of government decree. The newspaper horses that we use are fiat money, each dollar reads, This note is sanctioned tender for all debts, public and private. Page 345 Question 9 fill-in requirements are regulations on the minimum amount of militia that banks must detain against deposit.When the Fed raises reserve requirements there are less loans mad and the general money supply shrinks. Page 346 problem 7 You would use the money multiplier which is 1/. 05 so 20. The maximum intricacy of the money supply that occurs when the deposit that is made is 20 times the sign deposit which means we get 40,000 in money supply for the $2000 in cookie daze money. If one creates more it expands the supply by the money created.Macroeconomics que stionsAT&T it represents savings because the check wasnt being spent on consumption goods. ) Your roommate earning $100 and depositing it into her bank account also represents saving because the money wasnt spent on consumption goods. D) Borrowing $1000 from the bank to buy a car to use in your pizza delivery business represents Investment because the car Is a capital good. Page 295 Question 2 a) People get the benefit from the market of insurance not to eliminate the risks but to spread them around more efficiently. ) Two problems that impede insurance companies from working perfectly and their ability to spread risk are adverse election and moral hazard. Adverse selection is when a high-risk person is more likely to apply for insurance than a low-risk person because a high-risk person would benefit more from insurance protection. Moral Hazard is how after people buy insurance, they have less incentive to be careful about their risky behavior because the insurance company will cove r much of the resulting losses.Page 295 Question 5 Determine the companies sales revenue and number of stocks, and looking at the potential growth or weaknesses that may be facing the company. Health insurance could be an adverse selection because if its a person who has more health problems than the average healthy person they would benefit more from the insurance protection. A moral hazard for health insurance would be if after people got health insurance they stopped taking care of their health as well because they know they can fall back on the insurance.Car insurance could be an adverse selection if a person has an unsafe car or a record of bad driving they would be at higher-risk and benefit more from insurance protection. People who Just get car insurance could be a moral hazard because they know the insurance will cover a majority of their losses so they will stop driving as carefully. Chapter 1 5 Questions Page 318 Question 3 a) Frictional unemployment results because it ta kes time for workers to search for the jobs that best suit their tastes and skills.Frictional unemployment is inevitable because frictional employment is often the result of changes in the demand for labor among different firms. There could also be changes in the composition of demand among industries or regions called secular shifts that cause temporary employment while workers are in transition to search for Jobs in new sectors. Simply put, frictional unemployment is inevitable because the economy is always changing. People also leave there Jobs to search for Jobs that better suit their skills which also causes some frictional unemployment. ) If the government wanted to reduce frictional unemployment they could have skills development seminars in order to ease the transition of workers from declining to growing industries. They could also have employment agencies to match the unemployed labor to Jobs that match their skill set. Page 318 Question 7 A firm could increase its profits by raising the wages it pays because better paid workers are healthier and more productive, worker turnover is reduced, the firm can attract higher quality workers and worker effort is increased. Age 319 Question 7 a) If manufacturing workers formed a union, I would predict that the wage would rise and the quantity of labor demanded would decrease. Because the wage is higher, the quantity of labor supplied would increase, so there are unemployed workers in the unionized manufacturing sector. B) When the workers become unemployed in the manufacturing sector they will seek employment in the service labor market. The result of a larger supply of labor results in a lower wage in the unionized service sector and an increase in employment.Chapter 16 Questions Page 345 question 2 Intrinsic value means that the item would have value even if it were not used as money such as gold. Fiat money is money without intrinsic value that is used as money because of government decree. The paper dolla rs that we use are fiat money, each dollar reads, This note is legal tender for all debts, public and private. Page 345 Question 9 Reserve requirements are regulations on the minimum amount of reserves that banks must hold against deposit.When the Fed raises reserve requirements there are less loans mad and the overall money supply shrinks. Page 346 problem 7 You would use the money multiplier which is 1/. 05 so 20. The maximum expansion of the money supply that occurs when the deposit that is made is 20 times the initial deposit which means we get 40,000 in money supply for the $2000 in cookie Jar money. If one creates more it expands the supply by the money created.