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What are the characteristics of a purely competitive market? What makes these important? List at least two industries that are characterized by perfect competition.
What are the shortcomings of GDP as a measure of economic welfare? Discuss 3 other social indicators that can be used with GDP to measure welfare.
Weekly inverse demand function is P=296-7Q, weekly inverse supply function is P=17+2Q. Find equilibrium price & quantity & solve for consumer & producers surplus. Then tax of $27 per equanimity is collected by supplier, solve for new consumer and sup..
In evaluating projects, LeadTech’s engineers use a rate of 15%. One year ago a robotic-transfer machine was installed at a cost of $38,000. At the time, a 10-year life was estimated, but the machine has had a downtime rate of 28%, which is unacceptab..
According to Aristotle, a virtue is more than worthwhile habit; it is also a ________. On Aristotle’s “doctrine of the mean,” one of the most important factors in determining the virtuous course of action is to relate the (17) _________________ to (1..
The demand for good x1 is given by: (m/p1) - (p1/p2), where p1=1, p2=1, and m=10.Which of the following accurately describes the INCOME elasticity of demand?
Suppose that there is no fixed production input (i.e. long run.) With the production function above, the slope of the isoquant is given by MRTS = -(K/2L). Assume the firm chooses to hold costs C at $50.
Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Explain at what price of computers (in terms of shirts) the two countries might trade.
U.S. is currently suffering from underemployment and excessive current account deficit. What measures can U.S. take to move away from its present situation towards internal and external balance? Consider rules of Bretton Woods and policy tools.
Each person spends 12 hours per day writing poems and requires a wage of $10 per hour to do so. How much producer surplus per day will there be if the market
If these rates continue for long periods of time, how many years will it take for Mexico to catch up to the living standard of America?
Suppose that the U.S. net foreign debt (liabilities less assets) is equal to 25 per cent of the country’s GNP and that foreign assets and liabilities pay an interest rate of 5 per cent per year. What would be the “debt burden” for the U.S. (i.e. inte..
In 1975, President Ford proposed a $28 million cut in government spending and a $28 million tax cut, what is the result of the two actions on the economy? Show you work.
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