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Competition and the Role of Government:
Which factors have contributed most to the increase in drug expenditure. Give examples and a detailed explanation
Suppose the market demand and market supply curves are given by the following equations:
Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions. Category Value Compensation of employees $196.2 U.S. exports of goods and services 19.8 Consumption of fixed capital 11.8 Governme..
Pick an existing or proposed environmental policy. Use market failure theory to explain or justify the policy. Then use public choice theory to provide a possible alternative explanation for the policy.
You have been asked by your boss to estimate the cost to purchase a new piece of production equipment. The company purchased this same type of equipment in the past for $15,000. The original equipment had a capacity of 2,000 units, while the new equi..
So far we have discussed the macroeconomic issues (GDP growth, inflation, unemployment, money supply, money demand, fiscal policies, and monetary policies)
The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variable costs (TVC) change with output as shown in the accompanying table.
Consider an economy in a steady state with population growth rate n, a rate of capital depreciation Delta, and a rate of technological progress g(growth rate of y* in steady state). At the steady state change in k tilda = 0, where k tilda equals capi..
Suppose the S&P 500 was at 2,000 today and in 5 years the S&P 500 is at 8,000. If one would use $10,000 to purchase stocks that would change in value
Provide two specific real-world examples of GDP limitations. Given the limitations of GDP, is GDP a reliable indicator of the health of the U.S. economy? Explain why or why. Be sure you discuss the intended uses of GDP, that is, why the U.S. Departme..
A contractor is considering whether to buy or lease a new machine for her layout site work. Buying a new machine will cost $12,000 with a salvage value of #1200 after the machine's useful life of 8 years. On the other hand, leasing required an annual..
Suppose that a single firm monopolizes the market for coffee imports from Colombia into the United States. Supposed the firm is called Juan Perez. Juan Perez has production costs characterized by constant returns to scale such that AC=MC=40. Calculat..
In calculating the incremental cost of a particular project, how would you treat the possible future costs of a lawsuit that may occur as a result of this project.
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