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Describe how the consumer price index and the inflation rate are calculated. Why is it thought that the consumer price index, as presently calculated, overstates the rate of inflation?
A new electric generation plant is expected to cost $43,250,000 to complete. The revenues generated by the new plant are expected to be $3,875,000 per year, while operational expenses are estimated to be $2,000,000 per year. If the plant is expected ..
In your analysis, make sure to provide an example of each type of externality. Why does the government need to get involved with externalities to bring about market efficiency? What solutions need to be provided for your xamples?
Explain the Law of Demand. What are their assumptions? What are demand curve shifters and what causes them to shift? What is market equilibrium? What might keep the market from moving all the way to that equilibrium point? “Price control can be more ..
Confronted with an adverse supply shock, an economy with rigid wages and prices would suffer
q1. when the value of a nations imports exceeds the value of that nations exports the nation is said to have what?q2.
Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial Economics) where interviewed regarding the effect on the firm they both work at. Keeping all else constant, their answ..
Rather than look at the effect on the "competitiveness" of the dominant firm, should the Commission have not also considered the effect of the dominant firm's conduct on efficiency?
q.the inverse market demand for mineral water is p200-10q where q is the total market output and p stands for price of
The price paid by buyers increases by $2 and the after-tax price received by sellers falls by $3. The government is able to raise $750 per month in revenue from the tax. Elucidate deadweight loss from the tax.
The average rent in a city is $1,500 per month with a standard deviation of $250. Assume rent follows the normal distribution. What percentage of rents are between $1,250 and $1,750? What percentage of rents are greater than $2,000?
What are the costs of inflation? Which of these costs do you think are most important for the U.S. economy? What are your shoe leather costs of going to the bank? How might you measure these costs in dollars? How do you think the shoe leather costs o..
Explain how would we measure the cost of the project to determine whether it is worth undertaking.
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