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In a free market economy, consumption and investment decisions
1. are controlled largely by the government.
2. shape the future course of the national economy.
3. are necessarily controlled by big businesses.
4. require protection from foreign forces if individuals desire wealth accumulation.
Imagine a country that produces only two goods, pork and beans. The following table shows the maximum combinations of pork and beans that can be produced (With full employment of resources, fixed amounts of resources, and fixed technology)
Retail sales taxes are used at the state and local level to finance general fund expenditures. In other words, the tax revenue collected via the sales tax is not tied directly tied to benefits received by each taxpayer. Retail sales tax fair?
Some manufacturing companies are moving out of the country in search of cheap labor and the ones at home are not doing as good and some big ones like auto are trying to cope well after coming out of bankruptcy.
Now suppose the government decides to subsidize the production of sugar (regardless of who it is sold to). The government wants to achieve the same increase in domestic production as in part d). What should be the amount of such production subsidy..
Capital Asset Pricing Model
Now assume that labor supply is given by the equation W = 2 + 4L, and labor demand is given by the equation W = 56 - 2L, where W is the wage and L is the quantity of labor. Also assume that the capital stock changes and now K = 10. At full emplo..
Consumer sovereignty and "dollar votes" guide the market system in dealing with which fundamental question? What will be produced? How is the output to be produced?
Perfect price discrimination creates
Calculate the potential distribution using the FDM on the dielectric surface bounded by conducting matarials at different potentials
the economic analysis division of mapco enterprises has estimated the demand function for its line of weed trimmers as
Suppose you can buy a new Toyota Corolla for $20,000 and sell it for $12,000 after six years. Alternatively, you can lease the car for $300 per month for three years and return it at the end of the three years. For simpli- fication, assume that le..
what according to the mainstream theory of the business cycle is the most common source of recession a decrease in
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