The answers to the practice multiple-choice questions are below. Just click on "Read more". 1. B 2. E 3. C Need more practice? Get the Ultimate Review Packet. It's FREE to start. Step 1: Go to: www.ultimatereviewpacket.com Step 2: Create a free account Step 3: Enroll in the free version of the Macroeconomics packet
A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250, he can produce the cheese at a cost of $9 per kilogram. He is able to produce up to 400kg,but he plans to take advance orders and produce only what he can sell. His market research suggests that the amount he would be able to sell depends on the price in the following way: the mount decreases proportionally with the price; if he charged $20 per kg he would not sell any, and if the cheese was free he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his profit?
Mr. Clifford I’m switching careers from healthcare to accounting. I have to take macroecon after 10 years out of high school where I believe the teacher took pity on me back then and I scraped by with a B. I was on the verge of tears trying to understand this material I never really mastered in HS, until I found your videos. They have been a godsend. They’re quick but understandable. It’s finally starting to click. Thank you so much!
Hey Jacob I don't know if you will ever read this but I truly appreciate your work and I hope this channel keeps growing. I'm interested in econ but I'm not in a University. But just learning about it is fun. Thank you
@@JacobAClifford Both of my economics courses, and numerous economists have amazing takes on socialist economics. Why don't you do any videos on economic progressivism. Gigantic blindspots are bad for anyone's understanding of the market.
A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250, he can produce the cheese at a cost of $9 per kilogram. He is able to produce up to 400kg,but he plans to take advance orders and produce only what he can sell. His market research suggests that the amount he would be able to sell depends on the price in the following way: the mount decreases proportionally with the price; if he charged $20 per kg he would not sell any, and if the cheese was free he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his profit?
@@tobiaschapinda6771 Well, if the price and amount are proportional, we are meant to be on the desideratum. So, it should be 10$. The profit will be 2000$ - 250$ = 1750$.
A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250, he can produce the cheese at a cost of $9 per kilogram. He is able to produce up to 400kg,but he plans to take advance orders and produce only what he can sell. His market research suggests that the amount he would be able to sell depends on the price in the following way: the mount decreases proportionally with the price; if he charged $20 per kg he would not sell any, and if the cheese was free he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his profit?
I really appreciate this man's job. I know some people were hating on him for making them pay, but damn, you want something, you gotta work for it. Just keep up the good work❤ I rlly can't buy the review, but I'll continue to watch these awesome videos!!
Hey Mr. Clifford. Amazing work. I recently bought your review packet, it is extremely helpful. I especially love the practice quizzes at the end of each unit as by answering those questions, I get to quickly see what I understood and where I need a recap. Both Macro and Micro units are amazingly spread out, and the way you teach concepts is very student-friendly. Much appreciation. Thank you, you're a great teacher!
"If you can't explain it simply, you don't understand it well enough.",you are the perfect example of this, and I will support the hell out of you on patreon within 10 months,thanx a lottt.....❤️🙏
Mr. Clifford, after watching a lot of your videos and thinking hard why you name it ACDC. I'm proud to announce that I finally understand...!!!😃😃😃 AC & DC power graphs are very similar to economics graphs. That's why you call it ACDC...!!! The fact that you see economics in everything including electricity and movies show the depth of your understanding...!!! Thank you 😊
you rule~ I went to Edison High School, in Huntington Beach, CA. It's cool to see you out in the local areas on scene in videos. Like disneyland, etc. Thanks again
Hello ! Thank you very much! very good video, can you analyze the flow of treasury bills and bonds? After the bank buys the treasury bonds, what do they do with the bonds?
Could recommend the best books to read on the following courses Macroeconomics Microeconomics Econometrics International economics And other economic books we should read like Adam Smith the wealth of nations Please
First of all amazing work, thank you! Q: At min 2:12, is there a quick way to derive $900 and $400 ? Also, I didn't get why private Banks need to borrow from Reserve Banks. Thank you again!
1. For your first question, the get the amount of total change in the money supply, you need to find the money multiplier first. To find the money multiplier, you simply divide the initial deposit by the percentage of the required reserves. For example, if the required reserves are 20% and the initial deposit is 100$, then you divide 100 by 20. 100/20 = 5. In this case 5 is your money multiplier. Now, to find the change in the money supply, all you have to do is multiply the excess in reserves by the money multiplier. The excess in reserves are just the amount that the banks have left over after they've reserved the legally required amount. If the required reserves are 20% and the initial deposit 100%, then the reserved amount would be 20$, leaving 100-20=80$ in excess reserves. Doing the math, take 5 (which is the money multiplier) and multiply it by 80 (the excess reserves) and you get 400, the total change in the money supply. A simple formula for this: Total Change in Money Supply = (Money Multiplier) x (Excess Reserves). You can try this for yourself to see why the Total Change in Money Supply is 900$ when reserve requirements are 10%. 2. For your second question, im not entirely sure, although i would assume that if the banks borrow money from the reserve banks, then it means they have more money to loan out to the public. If they have more money to loan out, it means they dont have to charge higher interests rates to stay up and running and keep a good cash flow going in and out, so they can lower their interests rates for every loan they give out. By lowering their interest rates, more people will be willing to borrow from the banks and they'll be willing to spend more money on these loans. This means the bank will be making a lot of money since itll be able to put out more attractive loans which will bring more people to loan from them. Compared to if their interest rates are high, theyll need less loans to stay healthy, but itll be harder to get people to take these loans since higher interest rates means paying more on each dollar they loaned, and so it could be riskier. Of course, these differences really matter on the extremes, where interest rates are very high, or interest rates are very low, but overall thats how the banks see it and could be an answer to your question. Hope that helps a bit :)
So $100 deposited in bank, and 10% needs to be reserved by bank which is $10. Now, $90 can be loaned out. And the formula 1/reserve ratio, which is 1/0.1=10. 10*90=$900
So here's how I understand it, but I am confused by something. A bank operates with its total reserves, which is the sum of its required reserves and its excess reserves. Here is a question that confuses me a bit: Suppose a bank's required reserve ratio is 10 percent. Assume that the banking system has $20 million in deposits and $5 million in reserves. Find the required reserves and the excess reserves. If the reserve ratio is .1 then the required reserves should be 2 million, then the excess reserves will be $5 million - $2 million = $3 million. Okay so that math is easy, but I can't wrap my brain around the fact that there is $20 million in deposits, $5 million in reserves comprised of 2 million required reserves and $3 million excess reserves. How do we account for the $18 million from the $20 million that doesn't go towards the reserve requirement? Doesn't the entire $20 million of deposits need to be accounted for?
Hy Jacob , truly appreciate your work, could you however please talk a little slower as it does take time to grasp onto concepts when you talk fast , thank you
A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250, he can produce the cheese at a cost of $9 per kilogram. He is able to produce up to 400kg,but he plans to take advance orders and produce only what he can sell. His market research suggests that the amount he would be able to sell depends on the price in the following way: the mount decreases proportionally with the price; if he charged $20 per kg he would not sell any, and if the cheese was free he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his profit?
So the fact that almost every nation practices expansionary monetary policy in order to pull economies out of recession proves that the Keynesians are right no?
The answers to the practice multiple-choice questions are below. Just click on "Read more".
1. B
2. E
3. C
Need more practice? Get the Ultimate Review Packet. It's FREE to start.
Step 1: Go to: www.ultimatereviewpacket.com
Step 2: Create a free account
Step 3: Enroll in the free version of the Macroeconomics packet
Please do a video on the positives of socialist economics. Single payer health care, welfare, security, fire department, pooling resources.
A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250,
he can produce the cheese at a cost of $9 per kilogram. He is able to
produce up to 400kg,but he plans to take advance orders and
produce only what he can sell. His market research suggests that the
amount he would be able to sell depends on the price in the following
way: the mount decreases proportionally with the price; if he
charged $20 per kg he would not sell any, and if the cheese was free
he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his
profit?
I can’t find your minimum wage video, only the misconceptions
For 2, if the bank sells bonds, doesn't that mean the government buys bonds which will increase the money supply by $100,000?
@@tealtrim1401 on open market
Mr. Clifford I’m switching careers from healthcare to accounting. I have to take macroecon after 10 years out of high school where I believe the teacher took pity on me back then and I scraped by with a B. I was on the verge of tears trying to understand this material I never really mastered in HS, until I found your videos. They have been a godsend. They’re quick but understandable. It’s finally starting to click. Thank you so much!
Not all heroes wear capes
Hey Jacob I don't know if you will ever read this but I truly appreciate your work and I hope this channel keeps growing. I'm interested in econ but I'm not in a University. But just learning about it is fun. Thank you
I read every comment. I'm glad that you like my videos. Thanks for watching.
@@JacobAClifford Both of my economics courses, and numerous economists have amazing takes on socialist economics. Why don't you do any videos on economic progressivism. Gigantic blindspots are bad for anyone's understanding of the market.
@@JacobAClifford Adam Smith was pretty egalitarian.
You just succinctly explained to me in 7 minutes what I've been trying to figure out for almost a year now. Thank you so much!
A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250,
he can produce the cheese at a cost of $9 per kilogram. He is able to
produce up to 400kg,but he plans to take advance orders and
produce only what he can sell. His market research suggests that the
amount he would be able to sell depends on the price in the following
way: the mount decreases proportionally with the price; if he
charged $20 per kg he would not sell any, and if the cheese was free
he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his
profit?
@@tobiaschapinda6771 Well, if the price and amount are proportional, we are meant to be on the desideratum. So, it should be 10$. The profit will be 2000$ - 250$ = 1750$.
Loving the beard. Stay dashing, Jacob.
A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250,
he can produce the cheese at a cost of $9 per kilogram. He is able to
produce up to 400kg,but he plans to take advance orders and
produce only what he can sell. His market research suggests that the
amount he would be able to sell depends on the price in the following
way: the mount decreases proportionally with the price; if he
charged $20 per kg he would not sell any, and if the cheese was free
he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his
profit?
I really appreciate this man's job. I know some people were hating on him for making them pay, but damn, you want something, you gotta work for it. Just keep up the good work❤ I rlly can't buy the review, but I'll continue to watch these awesome videos!!
Hey Mr. Clifford. Amazing work. I recently bought your review packet, it is extremely helpful. I especially love the practice quizzes at the end of each unit as by answering those questions, I get to quickly see what I understood and where I need a recap. Both Macro and Micro units are amazingly spread out, and the way you teach concepts is very student-friendly. Much appreciation. Thank you, you're a great teacher!
In the pop quiz question 2 I don’t understand
"If you can't explain it simply, you don't understand it well enough.",you are the perfect example of this, and I will support the hell out of you on patreon within 10 months,thanx a lottt.....❤️🙏
Hey any update?
@@ravasj i was probably high,dont remember writing it
@@ravasj oh yes,postponed
You make learning fun! I wish all of my teachers were like you!
I'm not even in an economics course and I'm watching your videos!!!
That’s cool that you are learning without be forced to. Good for you.
Mr. Clifford, after watching a lot of your videos and thinking hard why you name it ACDC. I'm proud to announce that I finally understand...!!!😃😃😃
AC & DC power graphs are very similar to economics graphs. That's why you call it ACDC...!!!
The fact that you see economics in everything including electricity and movies show the depth of your understanding...!!!
Thank you 😊
Mr.Clifford you're so clutch during exam season! Best of health!
Man how do u make economics so much fun ?
My professors are so boring I'm so glad that I'm almost done with college
Our instructors are trash
Thank you so much! I am from a non-economics background but need to prepare for some basic concepts. This was super helpful!
you rule~ I went to Edison High School, in Huntington Beach, CA. It's cool to see you out in the local areas on scene in videos. Like disneyland, etc. Thanks again
I skipped the lecture in my class and watch this instead 😂
Thanks for making economics interesting. Textbook is so dry!
Hello ! Thank you very much! very good video, can you analyze the flow of treasury bills and bonds? After the bank buys the treasury bonds, what do they do with the bonds?
Hi! Thanks for an useful lesson. May I ask what can make monetary policy less effectivenesss?
Well explained. Thank you for teaching.
But why money supply not include saving/time deposits? Thank you.
You are fantastic! Mentoring your teaching pedagogy!
You have helped me pass my tests thank you
Could recommend the best books to read on the following courses
Macroeconomics
Microeconomics
Econometrics
International economics
And other economic books we should read like Adam Smith the wealth of nations
Please
Why decrease the discount rate can make it cheaper for banks to borrow from the central bank??
This is very helpful. Keep up the good work.
Thank you sir
A, B, D, C all are right accept c in question 3
Thank you. I wish you were my professor
lonable funds increase in demand
First of all amazing work, thank you! Q: At min 2:12, is there a quick way to derive $900 and $400 ? Also, I didn't get why private Banks need to borrow from Reserve Banks. Thank you again!
1. For your first question, the get the amount of total change in the money supply, you need to find the money multiplier first. To find the money multiplier, you simply divide the initial deposit by the percentage of the required reserves. For example, if the required reserves are 20% and the initial deposit is 100$, then you divide 100 by 20. 100/20 = 5. In this case 5 is your money multiplier. Now, to find the change in the money supply, all you have to do is multiply the excess in reserves by the money multiplier. The excess in reserves are just the amount that the banks have left over after they've reserved the legally required amount. If the required reserves are 20% and the initial deposit 100%, then the reserved amount would be 20$, leaving 100-20=80$ in excess reserves. Doing the math, take 5 (which is the money multiplier) and multiply it by 80 (the excess reserves) and you get 400, the total change in the money supply. A simple formula for this: Total Change in Money Supply = (Money Multiplier) x (Excess Reserves). You can try this for yourself to see why the Total Change in Money Supply is 900$ when reserve requirements are 10%.
2. For your second question, im not entirely sure, although i would assume that if the banks borrow money from the reserve banks, then it means they have more money to loan out to the public. If they have more money to loan out, it means they dont have to charge higher interests rates to stay up and running and keep a good cash flow going in and out, so they can lower their interests rates for every loan they give out. By lowering their interest rates, more people will be willing to borrow from the banks and they'll be willing to spend more money on these loans. This means the bank will be making a lot of money since itll be able to put out more attractive loans which will bring more people to loan from them. Compared to if their interest rates are high, theyll need less loans to stay healthy, but itll be harder to get people to take these loans since higher interest rates means paying more on each dollar they loaned, and so it could be riskier. Of course, these differences really matter on the extremes, where interest rates are very high, or interest rates are very low, but overall thats how the banks see it and could be an answer to your question.
Hope that helps a bit :)
What a g, keep doing yah thing 🙏🏽💰
(D) for question 2
4:10 6:40
This guy is a rockstar!
love the beard king
open market purchase
I love it
I don't understand how to solve number 3. Could someone please explain it to me?
Never mind, I figured it out.
@@sriramramamoorthy5134 help me
colaterlized morgage obligations
money markert multiplier
You deserve the ad revenue
u r so clutch my guy
6:35 2:08
You're the best!
Thank you so much!!!!
You are osm sir 😌.... Thanku so much 😊....
thanks
supply shock
federal funds rate
demand deposits and required reservesv fall
u made me lazy but at least i pass due ur efforts 😂😂😂
demand shock
Excellent 👌
Can someone explain number 2?
1:44
Can someone explain why the answers to 1 is B and 3 is C?
So $100 deposited in bank, and 10% needs to be reserved by bank which is $10. Now, $90 can be loaned out. And the formula 1/reserve ratio, which is 1/0.1=10. 10*90=$900
So here's how I understand it, but I am confused by something.
A bank operates with its total reserves, which is the sum of its required reserves and its excess reserves. Here is a question that confuses me a bit:
Suppose a bank's required reserve ratio is 10 percent. Assume that the banking system has $20 million in deposits and $5 million in reserves. Find the required reserves and the excess reserves. If the reserve ratio is .1 then the required reserves should be 2 million, then the excess reserves will be $5 million - $2 million = $3 million. Okay so that math is easy, but I can't wrap my brain around the fact that there is $20 million in deposits, $5 million in reserves comprised of 2 million required reserves and $3 million excess reserves. How do we account for the $18 million from the $20 million that doesn't go towards the reserve requirement? Doesn't the entire $20 million of deposits need to be accounted for?
I have Econ A level examination tomorrow and I'm not sure whether I can do it or not 😭
How was it ?
@@ToniaNkechi Hahahaha I was a little bit pessimist at first, glad I got B :")
my professor would like that
Hy Jacob , truly appreciate your work, could you however please talk a little slower as it does take time to grasp onto concepts when you talk fast , thank you
Please cover the topic labour market 🙁
A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250,
he can produce the cheese at a cost of $9 per kilogram. He is able to
produce up to 400kg,but he plans to take advance orders and
produce only what he can sell. His market research suggests that the
amount he would be able to sell depends on the price in the following
way: the mount decreases proportionally with the price; if he
charged $20 per kg he would not sell any, and if the cheese was free
he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his
profit?
@@tobiaschapinda6771 doesnt mr mc approach work here?
@@bistroshan7198 kindly help me with that Question.
@@tobiaschapinda6771 is the 9$ average total cost
@@bistroshan7198 yes
Money printer goes brrr (?)
Abolish money.
@@shawn8847 barter system goes brrr (?)
Thanks professor
i love you
(B)
beard is firing
nicee
So the fact that almost every nation practices expansionary monetary policy in order to pull economies out of recession proves that the Keynesians are right no?
im jsut here because of shcool
please do for ib economics T_T
Is anyone else curious what's up with the gallon of milk? 🐄
Jacob Clifford's real worth is $10000000000
hi
Please do a socialist economics video.
lmao minions typical boomer love this vid btw
Nice video! What about RJVX12 algorithm review?