Macro
Páginas: 2 (409 palabras)
Publicado: 22 de abril de 2012
Camila Bernal
1. After 10 years you would have ¥148
2. The present value of ¥1000 is ¥783.53
3. Risk averse person is someone who does not like taking risks. A person who is riskaverse would not gamble money because it would be risky.
4. Adverse Selection: When undesirable or risky people enter a voluntary exchange.
Moral Hazard: The theory that when you haveinsurance on something, you are less likely to take care of it.
In the financial system sometimes people with insurance take on the most risk. Banks with government support are usually the oneswith the most risk.
5.The unemployment rate is the number of people in the work force that do not have jobs:
Frictional Unemployment: It takes time for workers to search for jobs that are bestsuited for them.
Unions and Collective Bargaining: Wages are determined by the Union's collective bargaining, not by the market supply and demand for labor.
Efficiency Wages: Firms payabove-equilibrium market wages to prevent the workers from shirking.
6. Money has three functions. The first is that it acts as a store of value; the second is as a medium of exchange and the third functionis as a unit of account.
If an economy begins to print more money; the prices of goods and services will rise.
7. The money supply is related to a country's balance of payments because themoney supply expands whenever a nation has a trade surplus.
If China were to consume its foreign reserves the Chinese money supply would increase and the price of goods and services in the countrywould rise.
8. In 2010 China had a trade to GDP ratio of 50.2% and in Colombia it was 27.9%.
The method for calculating the openness of an economy is found by using the five conditions createdby Sachs and Warner. The five conditions are:
1) Average import tariff below 40%
2) Import quota and license coverage below 40%
3) Premium of black market exchange rate not exceeding...
1. After 10 years you would have ¥148
2. The present value of ¥1000 is ¥783.53
3. Risk averse person is someone who does not like taking risks. A person who is riskaverse would not gamble money because it would be risky.
4. Adverse Selection: When undesirable or risky people enter a voluntary exchange.
Moral Hazard: The theory that when you haveinsurance on something, you are less likely to take care of it.
In the financial system sometimes people with insurance take on the most risk. Banks with government support are usually the oneswith the most risk.
5.The unemployment rate is the number of people in the work force that do not have jobs:
Frictional Unemployment: It takes time for workers to search for jobs that are bestsuited for them.
Unions and Collective Bargaining: Wages are determined by the Union's collective bargaining, not by the market supply and demand for labor.
Efficiency Wages: Firms payabove-equilibrium market wages to prevent the workers from shirking.
6. Money has three functions. The first is that it acts as a store of value; the second is as a medium of exchange and the third functionis as a unit of account.
If an economy begins to print more money; the prices of goods and services will rise.
7. The money supply is related to a country's balance of payments because themoney supply expands whenever a nation has a trade surplus.
If China were to consume its foreign reserves the Chinese money supply would increase and the price of goods and services in the countrywould rise.
8. In 2010 China had a trade to GDP ratio of 50.2% and in Colombia it was 27.9%.
The method for calculating the openness of an economy is found by using the five conditions createdby Sachs and Warner. The five conditions are:
1) Average import tariff below 40%
2) Import quota and license coverage below 40%
3) Premium of black market exchange rate not exceeding...
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