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1. Suppose that the government of a nation who's producers export coffee burns one-third of all the coffee fields before they can be harvested. Explain the impact of this action on the global price and quantity of coffee.
2. Consider the question above. Can you explain, in economic terms, why the government would be motivated to do such a thing?
Gina has the choice of two bonds, one that pays 5 percent interest and the other that pays 10 percent interest. Which of the following is most likely?
If there were 60 firms in this market, the short-run equilibrium price of titanium would beper pound. At that price, firms in this industry would . Therefore, in the long run, firms would the titanium market.
Using the power operations on a typical calculator, find the period interest rate to three digits after the decimal point in percentage format that results in the F/P factor being 2.85 after 16 periods.
There is persistent fear that there will be a high level of deflation. Many economists warn that it may be worse for the economy than if there is high inflation. Let\'s work through one example. What is the real interest rate that Herb expected to pa..
Suppose the President gets Congress to pass legislation that encourages investment in research and the development of new technologies. Assuming this policy leads to a positive productivity change for the U.S. economy, use aggregate demand and supply..
A mutual stock fund has grown at a rate of 16% compounded annually since its beginning. If it is anticipated that it will continue to grow at this rate, how much must be invested every year so that $60,000 will be accumulated at the end of 12 year?
A company produces two main products: electronic control devices and specialty microchips. The average total cost of producing a microchip is $300; the firm then sells the chips to other high-tech manufacturers for $550. Should the company produce co..
Describe the effect of each of the following events on the demand or supply of gasoline in the USA. Further indicate the likely direction in the amount of gasoline exchanged AND the expected market price.
Oceania is a small open economy. Suppose that a large number of foreign countries begin to subsidize investment by instituting an investment tax credit (while adjusting other taxes to hold their tax revenue constant), What happens to world investment..
Discuss an activity or process or product of Wal-Mart that exhibits economies or diseconomies of scale. Describe the source of the scale economy.
draw a supply and demand graph to illustrate the consumer surplus that occurs when the market is in equilibrium
When we speak of "government purchases" in calculating aggregate demand, we mean purchases by a. all levels of government local, state and federal b. local governments only c. he federal government only d. state and federal governments, but not count..
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