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The government in California is increasing minimum wage to $15 dollars and hour, will this cause a surplus or a shortage of workers (labor)? Make sure to include the appropriate Graph and who the potential winners and losers are, as well as provide alternative solutions. Make sure to graph!
How could they continue to operate at a loss? 3. You want to determine the profit-maximizing production quantity for a monopolist.
Dranove and Wehner (1994) argue that the statistical evidence used to support the supplier induced demand hypothesis is invalid because they find that the same statistical techniques also suggest that obstetricians induce demand. Briefly explain the ..
Suppose that the demand curve for wheat is q = 100 - 10p and the supply curve is q = 10p. the government imposes a price support at p = 6 using a deficiency payment program. What is the quantity supplied, the price that clears the market, and the def..
The government of a small open economy is considering the following policy changes. Evaluate them and show the expected outcomes (sketch graphs to help visualize the changes). The trade minister wishes to restrict imports through quotas in order to p..
For several months before your vacation trip to Germany you find out the exchange rate for the peso has increased relative to the euro.
When gasoline prices spike, producers consider using oil fields that once had been passed over because of the high costs of extracting oil. In a figure, show what this statement implies about the shape of the oil extraction cost function.
Imagine that a $10,000 ten-year bond was issued at an interest rate of 6%. You are thinking about buying this bond one year before the end of the ten years, but interest rates are now 9%. Calculate what you would actually be willing to pay for this b..
“The new healthcare law will work only if congressional republicans don't obstruct its implementation. However, either congressional republicans will obstruct its implementation or they will let the U.S. Economy go into default. Whether the set of p..
suppose there is 120 million of cash and that half of this cash is held in bank vaults as required reserves that is
Describe how a contractionary monetary policy impacts a nation's international trade. Be sure to discuss the value of that nation's currency, the price of goods produced in that nation, and its trade balance. Describe the effect of expansionary econo..
Suppose the US. Unemployment rate at the start of 2010 had been 6% instead of 9.7%. How many more people would have been working (assuming the labor force remained the same)?
Assume an economy is closed. According to classical economic theory, explain what will be the long run effects of an increase in taxes. You may want to organize your answer around these three parts: A) Aggregate Supply/Output (includes a discussion o..
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