Describe the term "intrapsychic adjustment". Explain how big fiscal deficits affect the real economy. Why is macroeconomics called income theory? When the price of gold jewelry rises by 0.5%, the quantity demanded falls by 1.3%. What is the elasticity of the demand for gold jewelry?
Briefly discuss the fundamental factors that influence the risk premium of an investment. Briefly discuss the five fundamental factors that influence the risk premium of an investment. Explain the concept of cost of capital. Describe a variable cost. 1. Explain cost plus pricing. 2. What ar...
Explain the reason for fixing efficiency wage rate above the competitive level. Why should the labor supply of individuals depend on the real wage rather than the nominal wage? Explain briefly. Why are there disparities in cost of living? Describe the reasons why an industry's costs might incre...
Explain the following statement. "The higher the potential return on an investment, the higher the risk." Provide a literal and mathematical definition for the elasticity of scale. Comment on the difference between returns of scale and economies of scale. Describe the concept of marginality a...