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When economists are sketching examples of supply and demand, it is common to sketch a demand or supply curve that is close to vertical, and then to refer to that curve as _________.
a. inelastic
b. elastic
c. unitary elasticity
d. income elasticity
In the late 1990s, several East Asian economies had their currencies pegged to the U. S. dollar. Suppose there is an economic boom in the United States that leads to an increase in U. S. interest rates.
Draw the cheese market for the United States showing the world price as the price for this market. How much cheese does the U.S. import at the world price?
what are the methods that labor unions use to increase the wage rates of their members above the levels of nonunion
What assumptions are necessary for a market to be perfectly competitive? In light of what you have learned in this chapter, why is each of these assumptions important?
Discuss how forward and options contract can be used by the company to hedge its exposure to exchange rate risk.
Suppose the inflation rate is 5%. Suppose the marginal product of capital in a firm is 8% but that in the course of production, 6% of capital is worn out by depreciation. What is the nominal return associated with an investment in capital, and why..
Determine what type of monetary policy has the Federal Reserve been using for the last year easy or expansionary, tight or contractionary, or neutral or non-involvement)?
why Banks are exposed to interest rate risk primarily. what does the Federal funds market involves.
bad breath inc sells its output at 1 per unit into competitive markets. bad breaths factory is the only employer or
assume that the marker for tradable emissions permits by power plants has been operating efficiently for several years.
freds frisbees is trying to determine how many frisbee pressing machines to buy for its new factory. the real price of
identify and define the three categories of compensation arrangements. give examples of specific arrangements in each
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