What is the role of money in the modern economy? How well would our economy function without money? What would the consequences be?   DQ2 What is the primary function of banks in the macro economy? How do banks facilitate the circular flow?

Why is the U.S. GDP so much higher than that of Mexico? Would the same reasons apply when we compare the U.S. GDP to Canada’s GDP?   DQ2 If the government were to make university attendance mandatory and subsidize tuition costs with tax dollars, how might this affect a nation’s economic growth?

Walmart is one of the most commercially successful U.S. companies today. Relate what you have learned about costs to why Walmart has been so profitable. Has Walmart’s success come at any cost? What is the most serious charge against Walmart? What is the most significant benefit that Walmart offers?   DQ2 You are the owner […]

Jane spends all her income on hot dogs and caviar. Her demand curve for caviar is inelastic at all prices for caviar. Unfortunately, the accident at Chernobyl has caused the supply of caviar to fall and the price to rise. What has happened to Jane’s consumption of hot dogs? Explain. (Note: You should assume that […]

All U.S. states subsidize education for college students, mostly by charging below-cost tuition. Nearly free tuition is available in many European countries and Canada. Do you think the government should subsidize college education so that it can be provided with very low tuition? Or, should college education be allocated in a market system, in which […]

INTERMEDIATE ECONOMICS Is price elasticity of demand at GCU elastic or inelastic? What could you do to find out?   DQ2 Most managers and executives believe their firm has an opportunity to take advantage of economies of scale; however, many firms do not. Slect one of the questions below and respond.   How could you […]

The U.S. has accused China of artificially deflating the value of their currency. What would be the motivation for the Chinese to pursue such a policy? How might Chinese citizens be hurt by these actions?   DQ2 Policies established by the World Bank and the IMF have been the subject of much criticism, especially from […]

In many ways, the Federal Reserve does not control the level of interest rates nor the money supply. Rather, this is controlled by the actions of individual banks throughout the economy. “Explain the rationale behind this statement. What action is required by the banks for Federal Reserve policy to be effective in stimulating the economy? […]

Classical economic theory says there is a linkage between investment and savings. Explain the source of this linkage. What is the argument that says this link is not as strong as classical economists believe? (Hint: Differentiate between the parties that save and those that invest, and their rationale.)   DQ2 If the federal government were […]

Identify the Classical prescription for curing unemployment and contrast it with the Keynesian prescription. Which prescription do you agree with? Why?   DQ2 In 2013-2014, the nation was struggling with a persistent high level of unemployment, low rates of economic growth, and high federal budget deficits. Explain how solutions to these economic problems conflict with […]