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Positive Analysis and Supply-and-Demand Graph
As we all know, at present it is illegal for parents who want to adopt a child to pay the birth mother for, or to offer to pay for, the babies they adopt. (Adoption agencies do charge for their services, of course.) Use economic theory to analyze the (potential) market for adoptive babies and answer this: what would happen if such payments were allowed? (Draw yourself a supply-and-demand graph to help you think about this question.)
In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Explain?
Create an educated guess as to illustrtae you expect to happen to short-term.
Relationship among consumption expenditures and inventories as well as their interdependence, and think in terms of the Multiplier.
Consumption accounts for about 60% of GDP, while investments accounts for about 20% for GDP. But many economists think that, to understand economic recession, it is more significant to look at investment than consumption. Why?
Illustrate what market did Microsoft have a monopoly in the late 1990s. What technological advances threatened that monopoly.
Elucidate what level of visits will the maximum profit position be. Elucidate what are the profits at this level.
Compute the expected utility of each project and identify the preferred project according to this criterion.
Illustrate what impact would the introduction of online rental of DVD'S have had on the in-store movie rental market.
Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.
Assume there are two types of investments, business investments. There is a permanent increase in the nominal supply of money.
Agree or disagree and describe: In monopolistically competitive market, firms that innovate successfully can increase their economic profits and lock in higher market shares over long run.
Describe what long-term economic growth is and if there are any limits to the U.S. long-term economic growth.
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