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Assume you're advising the newly formed Russian government (formerly the Russian SSR) in 1991 regarding their policy toward State and Collective Farms in agriculture, which were both very large individually, with State Farms (Sovkhozy) being much larger, with thousands of workers, machine-tractor stations, etc.. Both types of organizations had grown unwieldy and inefficient and received various government subsidies. Construct a program that you could recommend to the government for privatizing these farms, which would immediately lower the incomes of the subsidized farmers, without creating a political disaster. Is there a way in which a plan could provide incentives to the Farm members that would have a good chance of raising productivity and lead to increased agricultural output while at the same time eliminating subsidies?
Assume initially that the exchange rate is $2 per pound, and a particular car sells for $20,000 in New York and 10,000 pounds in London. Create new prices and a new exchange rate that will yield PPP.
Explain how might we interpret this statement in terms of cost curves and revenue curves.
Assume the U.S. government determines that cigarette smoking creates social costs not reflected in the current price of cigarettes in the market
Explain carefully in terms of production theory why it might be that no amount of "cracking down" can increase worker productivity at CF&D.
Explain how does the increase in the after-tax price depend on the price elasticity of demand
Illustrate what assumptions is the theory based, and how plausible are these assumptions.
Calculate the effect of the following events on the monetary base:
Assume her estimated selling price is lower than originally projected. How much revenue would she need in order to earn a positive accounting profits.
Explain how can you go about finding L, normally it is either the budget constraint and utility functions slopes are equivalent,
Explain why do think the European Union countries decide to have a single central bank and a single currency, instead of just agreeing to maintain fixed exchange rates among their currencies.
We now incur shocks as provided in red font. Solve for a new expression of the consumption function and aggregate expenditure curve, solve for the new equilibrium output and add this new equilibrium point to both of your diagrams (label as point B..
Elucidate how the multiplier effect would support Keynes explanation alsp explain how economies can fall into recession or depressions.
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