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Government consumption in our model is simply a "waste", that is it does not affect anyone's utility or affect the production process. Use the Pareto Optimality framework. For each of them,solve the social planner's problem and show the equations that characterize the optimal allocations.Then argue how a change in G would affect the choices (consumption , labor supply and also output) by the social planner.
a. Government expenditures increase household's utility by anotherterm in the utility function : log (G).
b. Government expenditures add to the existing private capital stock, so the capital stock of firms is now K+G.
Discuss and explain two conflicts of interest faced by an Investment Advisor who is employed by a commercial bank or an investment bank?
Illustrate what would you expect to happen to the total expenditures on good X.
Suppose the U.S. is in the midst of a recession and a new president has just inherited an already large public debt.
There is a supply and a demand for most goods. The result is a market clearing equilibrium price. Firms many times supply a certain amount of the hot or must have product to the market.
Howard Bowen is a big cotton farmer. The land and equipment he has a current market value of $4,000,000. Bowen owes his local bank $3,000,000.
Illustrate what economic policy should be adopted by regions with persistent economic problems.
Elucidate the impact of globalization on domestic governance. Identify and explicate at least three significant factors requiring domestic changes.
A recent McKinsey report concluded that 'If a price war occurs in a specific market-Critically examine this statement.
Could you please explain fully the difference among an increase in demand and an increase in quantity demanded, by giving an example of what would cause an increase in quantity demanded and please illustrate the effect of such an increase with a ..
Assume that two individuals have the similar tastes and the same initial endowments. What can you say about the efficiency of the allocation.
Suppose the economy is in a recession. Explain an adjustment process using AD and AS examine that will ensure that the economy will return to full employment
A firm uses a single plan with costs C = 160 + 16Q + .1Q 2 and faces the price equation P = 96 - .4Q. The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units.
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