If a new breakthrough in manufacturing technology reduces the cost of producing Blu-ray players by half, what will happen to the each of the following? a. Supply of Blue-ray players.b. Demand for Blu-ray players.c. Equilibrium price and quantity of Blu-ray players.d. Demand for Blu-rays.

Can Gasoline Become an Exception to the Law of Demand? Can the Law of Supply Be Repealed for the Oil Market? Can the Price System Eliminate Scarcity?

Because we use the envelope theorem in constrained optimisation problems often in the text, proving this theorem in a simple case may help develop some intuition. Thus, sup-pose we wish to maximise a function of two variables and that the value of this function also depends on a parameter, a: f (x1, x2, a). This

Suppose that a consumer’s utility function for goods x, y and z is expressed according to the Cobb–Douglas utility function Prices are given by Consumer income is given by I= 8. a. Determine the utility maximising quantity of good z consumed.b. Explain why this quantity of good z is optimal?c. Determine the minimum income required

A health insurance company considers the risk to a Sherpa who has a current wealth of 20 000 renminbi (RMB), working in the Himalayas, incurring an injury in the performance of their duties which that will cost 10 000 RMB in medical care is 50 per cent. a. Calculate the cost of actuarially fair insurance

GDP is a less-than-perfect measure of the nation’s economic pulse because it a. excludes nonmarket transactions.b. does not measure the quality of goods and services.c. does not report illegal transactions.d. All of the answers above are correct.

Subtracting an allowance for depreciation of fixed capital from gross domestic product yields a. real GDP.b. nominal GDP.c. personal income.d. national income.

Adding all incomes earned by households from the sale of resources yields a. intermediate goods.b. indirect business taxes.c. national income.d. personal income.

Personal income equals disposable income plus a. personal savings.b. transfer payments.c. dividend payments.d. personal taxes.

Disposal personal income a. is the income people spend for personal items such as homes and cars.b. includes transfer payments.c. excludes transfer payments.d. includes personal taxes.