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Economists argue that some environments are more conducive to economic growth than others. One of the ways economists differentiate one environment from another is in terms of its institutions. An institution is "the rules of the game in a society or, more formally, the humanly devised constraints that shape human interaction: the rules and regulations, laws, customs, and business practices of a country." Do you agree that institutions are conducive to economic growth? If so, how? Briefly discuss.
Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both. Which curve shifts, and in which direction What happens to aggregate output and the price level in ..
Discuss the Neoclassical and New Growth theories and then identify and discuss those characteristics features of the small developing island economies of South Pacific that pose obstacles to their economic growth.
John Bros, owner of a spark plug manufacturing facility, is looking to expand his production capacity. He is considering three locations A, B, and C for the constructing of a new plant. The company wishes to find the most economical location for a..
An economy is in long-run macroeconomic equilibrium when each of the following aggregate demand shocks occurs. What kind of gap-inflationary or recessionary-will the economy face after the shock,
Based on the saving and investment relationship in the closed economy, explain how an increase in government pushes (G) can affect growth in output per worker. We assume that the taxes that the government collects remain unchanged.
Consider a market for meals in a school cafeteria. Suppose that in this market only one seller (the school foodservice unit) can sell meals to an unlimited number of students. What is the price elasticity of demand at p=4 at that price
The decisions of the World Trade Organization in particular have been the subject which has much criticism.
Tim buys 2 pizzas and sees 1 movie a week when he has $16 to spend. The price of a movie ticket $8, and the price of a pizza is $4. Draw Tim's budget line. If the price of a movie ticket falls to $4, describe how Tim's consumption possiblities cha..
Describe how eBay works to allocate goods and explain how the prices of those goods are determined on eBay. How does eBay, an e-commerce innovation, help increase consumer and producer surplus achieve greater allocative efficiency?
Suppose two high tech companies, X and Y, are the only producers of a new product that is used my numerous computer manufacturers.
a factory benefits from discharging effluent q into a lake. the marginal benefit function is given by 60-2q. the
Why might you expect to see flat royalty payments in home-based franchises but revenue-based royalties in franchisees that operate from commercial buildings. Among the most popular home-based franchises are cleaning services offered to business an..
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