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1. Why does rent control result in a shortage of rental units.
2. How does price elasticity of demand affect how much of a tax is passed on to the consumer and how much is absorbed by the seller. Show the effect with graphs.
3. Why can monopolistic firms make economic profit in the short run bot not in the long run. Explain and show graphically.
4. Your brother-in-law wants to borrow $1000 from you but he has a fit when you tell him he will have to pay you the same interest on the loan that the bank gives you. Are you justified? Why or Why not?
5. During the 1930s Jewish fighters dominated boxing. From the around 1975 until the present, blacks have dominated basketball. Explain the causes underlying these two situations.
Why is U.S. economic growth important to the average American and what is the best way to measure standard of living of the average person: (use unemployment rate, inflation, & GDP in your answer)?
In a short run condition in which quantity demanded equals quantity supplied in a competitive industry, with value greater than the average cost of the typical company,
If a competitive firm is currently producing a level of output at which profit is not maximized, then it must be true that marginal revenue exceeds marginal cost.
Suppose that in the hypothetical country of Vanadia, picture frames are distributed based on government policy. This system of distributing goods gives the residents of Vanadia an incentive to spend timea) earning money b) lobbying government officia..
A. Deficits and surpluses could be used to avoid fluctuations in the tax rate. B. Reducing the budget deficit rather than funding more education spending could, all things considered, make future generations worse off. C. A potential cost of defic..
Explain, using diagrams, why a monopoly can potentially earn super-normal profit in both the short run and the long run, while perfectly competitive firms can only earn normal profit in the long run.
Write a One Page write up with single space about the difference between Non-Cooperative and Coordination Games. What is the benefit of coordination between players.Stick to the outcome, not to the definition.
During middle years of this decade, the exchange rate of the United States dollar has declined against the currencies of its major trading partners.
Airway Express has an evening flight from Los Angeles to New York with an average of 80 passengers and a return flight the next afternoon with an average of 50 passengers.
1) Whether an asset is "liquid" often depends on what situation you are in. For each of the pairs of assets below, which is more liquid in the particular setting? You want to buy a sofa: A savings account or currency You want to trade for a bolo..
Define carefully what is meant by a demand schedule or curve. State the law of downward-sloping demand. Illustrate the law of downward-sloping demand with two cases from your own experience.
Subsequent pounds are worth $0.30, how many pounds of potatoes will she purchase? What if she only had $3.00 to spend?
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