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Should a balanced budget amendment be added to the Constitution requiring that Congress pass a balanced budget each year? Why or why not?
In January of this year US equity markets were rattled by signs of a slowdown in growth of the Chinese economy and other emerging markets, collapsing prices of oil and stagnation in most of the Euro zone countries...What is the likely impact on the E..
How do the Minsky and Austrian explanations for the causes of the Great Recession differ? Explain how the proponents of government stimulus believe that it will affect aggregate demand and employment (be specific!). How might government stimulus poss..
Suppose Mary’s utility function for two goods X and Y is given by: U(X,Y) = 2X1/2Y1/2. Suppose consumption bundle A consists of 10 units of X and 10 units of Y, and consumption bundle B consists of 20 units of X and 5 units of Y. Consumption bundle A..
A firm uses third-degree price discrimination to sell the same cologne under two different labels. The price elasticity of demand for `High Class' is -1.25. The price elasticity of demand for `Splash-This-Stuff-On' is -2. Which one of the following s..
The purpose of this assessment is to help you analyze the factors that affect the demand and supply of any product in the market. Assessment Description: Analyze the following events: The price of oil increases because Organization of Petroleum Expor..
Use the following information to answer the questions below. A local supermarket had been charging $2.00 a pound for eggplants and selling 200 pounds a week. Compute the price elasticity of demand for eggplants. When the price rises from $2.00 to $2...
Consider the market for pizza. Indicate whether each of the following events is more likely to impact producer behavior (supply) or consumer behavior (demand). Will supply/demand increase or decrease?
You are barganing coordinator for Sun Car Manufacturers. At present you are renegotiating the labor contract with the union representative. You are bargaining over an expected 20% increase in earnings over the next three-year contract period. The uni..
Suppose you have a $20 gift card and want to buy Blue and Red yarn. The utility function from yards of blue (B) and red (R) yarn can be expressed as follows: U(B,R) = 3B+R there is a sale on red yarn, and that it currently costs $1 per yard. blue yar..
Suppose the candle manufacturing industry is organized as a perfectly competitive market i.e. it consists of many firms with identical cost structures. A single firm's long-run average total cost function is “U” shaped and minimized at an output of q..
Two investment opportunities are as follows: For A: First cost = $150, Uniform annual benefit = 25, End-of-useful-life salvage value = 20, Useful life = 15 years. At the end of 10 years, Alt. B is not replaced. Thus, the comparison is 15 years of A v..
Use the calculator to answer the question below. With a new government tax of $20 per carton, illusrtae what is the equilibrium quantity of cigarette cartons.
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