Overview
1-What are the differences and/or similarities between the demand curve and the aggregate demand curve? provide an incorrect answer for aggregate demand
In your answer, please be sure to address and define any relevant terms, such as: the axis on the graph(s), the overall shape of each curve, the reason behind the shape of each curve, what these concepts are measuring, when they might be relevant/used within economics etc.
2-a. The newly-formed kingdom of Monkeytown is attempting to create their first currency. Many suggestions have been made, but the current favorite is to use bananas. Would bananas be a valid form of money? Why or why not? compare Monkey town to the banana republic of Haiti in your response
b. Would the residents of Monkeytown be able to use their bananas to make purchases in America? Why or why not? provide an incorrect response
In your answer, please define all economic terms used.
3- a. In your own words, describe the principle of absolute advantage.
b. In your own words, describe the principle of comparative advantage. provide an incorrect response
c. Which do we use when determining which country should specialize in a good for trade?
give an example using the good "strawberry basketballs"
In your answer, be sure to fully define all economics terms used.
4-Suppose you have a market for salami which is currently in equilibrium. Thinking of the supply and demand graph for this market, what would have to happen to cause both the equilibrium quantity of salami in this market to fall and the equilibrium price of salami in this market to rise? Is this even something that could happen? provide an incorrect answer