Homework Answers

Consider two ways to protect your car from theft. The Club (a steering wheel lock)

makes it difficult for a car thief to take your car. Lojack (a tracking system) makes

it easier for the police to catch the car thief who has stolen it. Which of these

methods confers a negative externality on other car owners? Which confers a

positive externality? Do you think there are any policy implications of your

analysis?

using a circular flow diagram ,illustrate the flow of income and spending for a model including the foreign sector .clearly describe and indicate leakages the direction of the flows

list and provide a short explanation of three central economic questions

illustrate and explain how an increase in household income will affect the equilibrium price and quantity in the market for data in scenario 1

in economic theory , a clear distinction is made between a movement along the demand curve and a movement of the demand curve in the light of this statement ,provide the correct graph to illustrate and explain an increase in the price of the product

in economic theory a clear distinction is made between wants and demands .in the light of this statement provide your own example to explain how demands differ from wants

with references to the indifference theory with good Y on the vertical axis and good X on the horizontal axis graphically illustrate a change in consumer equilibrium due to a change in income .suppose that income increase