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Assume that you own 50,000 acres of land and that you grow wheat. With continued applications of fertilizer, you should be able to grow enough wheat to feed the entire United States. Does this statement make economic sense and why?
Explain why price discrimination solves the welfare loss problem of monopoly, but then describe the downside of solving the welfare loss problem this way.
Consider the following statement. "Winter ice storms that sometimes hit Chicago are good for the economy. They create many jobs to remove downed limbs and replace trees and bushes." Do you agree that ice storms are a net benefit to the economy? To an..
How does the adverse selection problem arise in the credit- card market? How do credit- card companies reduce the adverse selection problem that they face? To what complaint does this give rise?
Explain how does the price elasticity of demand for corn oil influence the quantity-demanded of corn oil and the Total Revenue earned by sellers of corn oil.
Explain the connection between the vertical long-run aggregate supply curve and the vertical long-run Phillips curve.
The annual rate of inflation average 2 percent during the past decade, but borrower and lenders anticipation that the price level will rise at the rate of 3 percent next year. The current nominal interest rate is 7 percent. What is the real rate of i..
How do you determine the expected value (payoff) of the claim to the injured victim at filing
When traveling on vacation recently in a country with a large consumption tax, your textbook author was presented with a deal: pay cash and get a 10% discount. Given that credit card transactions cost the merchant less than 2%, why did the merchant m..
In the pea population under study, p = 0.50 and q = 0.50. You count the plants for their flower colors and find the following numbers:
Illustrate what are the levels of income every worker also consumption every worker at the initial period. Remembering that the change in the capital stock is investment less depreciation.
Show the bit patterns of both operands in the multiplication, andexplain clearly the steps you follow to determine the result. Hint: See the slides on "multiplying by constants"when the constant is negative.
Typically the government: Inflation caused by people’s expectations of inflation is called self-fulfilling inflation. The _____ the unemployment rate and the _____ the rate of inflation, the higher the misery index. If the nominal rate of interest i..
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