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All countries are faced with the basic economic problem of scarcity. Governmentscan intervene in their economies through the use of budgets.
(a) Explain why all countries face the basic economic problem of scarcity.
(b) Explain why governments have to make choices, and give an example of onechoice they might face.
(c) Explain the term "labour mobility" and describe 2 measures that thegovernment could introduce to improve it.
(d) Explain how the UK government can use the Budget to:
(i) increase the disposable income of consumers;
(ii) reduce the income gap between rich and poor.
Long-term investment decision, payback method Bill Williams has the opportunity to invest in project A that costs $9,000 today and promises to pay annual end-ofyear payments of $2,200, $2,500, $2,500, $2,000, and $1,800 over the next 5 years.
Draw the consumer's budget constraint and optimal choice when three is no tax. Calculate the utility the consumer gets.
If this year's profit (end of year 1) is expected to be $6,000 and the profit trend continues (i.e. the profit at the end of year 2 is $7,200 and so on) for four years, find the present worth of the profit at an interest rate of 9% per year.
Among which method of encouraging growth would one suggest for these typical companies in these 2 countries.
Illustrate what appears to be the major constraint that the central banks used to determine the limits of the monetary injections into the economy.
The insurance company informs her that she has two options: (1) she can receive the entire $500,000 in one lump-sum payment or (2) she can receive annual installments of $58,000 for ten years.
Describe how fuel and labor have impacted motor carrier cost structures and how they have altered motor carrier operations. How does fuel cost and efficiency affect both air carrier costs and pricing?
Suppose that in Horsehead, Massachusetts, the cost of operating a lobster boat is $4,000 per month.Suppose that if x lobster boats operate in the bay, the total monthly revenue from lobster boats in the bay is $1,000(28x - x2).
The demand for polished bronze is given by P = 100 - Q/2. Production of polished bronze is controlled by Bronze Indentify BIs profit maximizing output and price. What is the cost to the town of removing the mercury pollution?
We know that a certain piece of equipment will cost 150,000 in 5 years. How much must be deposited today using 10% interest to pay for it?
Advanced MUa = z=10-x and MUb = z = 21 - 2y, where z in marginal utility per dollar in the amount spent on product A, and y is the amount spent on product B.
What was the result of the Kenedy tax cut of 1964? I believe it is that the unemployment rate decreased and the economic growth rate increased, yet I see sometimes where it states that unemployment increased
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