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Discuss the opposing arguments as to whether consumer sovereignty should prevail in medical care.
Explain what happens to the primary deficit in year t if the nominal interest rate in year t increases to 17%.
What are "normal" goods? Give an example in our current economy and what are "inferior" goods? Give an example in our current economy.
Calculate the net present value and benefit-cost ratio for four different discount rates
Assume there are two services offered in economy: dance clubs and college education. Both require the use of limited resources, but not all of the resources used in each one can be readily transferred to the other.
What is significant about the connection between the demand for goods and market failures? What happens to the demand for goods when a market fails
Assume a manager of a profitable department store you're confronted with the pricing problem. You've two types of customers
What are the various methods of inventory valuation? Explain the effect of inventory valuation methods on profit during inflation. What are the provisions of Accounting Standard 2 (AS-2) with regards to inventory valuation?
Evaluate the money multiplier? The central bank decides to increase the money supply (M1) by $200 million through an open market operation. How much should it buy in bonds?
Write down the household's budget constraints for period 1 and 2 and identify the current account.
Assume that someone told you that an increase in price of DVD players caused the decrease in demand for DVDs. Is this what you would predict? Why or why not?
What effect will each of the following have on the supply of automobile tires?
Draw the diagram showing the cost structure of price taker and a market price well above minimum average cost. Given that any firm is price taker, how can a firm capture any economic rent (profits in excess of opportunity cost of capital)?
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