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General Electric discovered that the marginal product of magnesium a variable factor in manufacturing of light bulbs will lead to the eventual decline in output as the use of the magnesium is increased. This illustrates what economic theory?
The International Monetary Fund IMF supply assistance to nation experiencing economic woes.
Assume that the United States is initially operating at its full-employment level of output and prices and wages are eventually flexible both upward and downward. Construct a long-run AD-AS model.
(a) What is market concentration and how can you know whether a market is concentrated or not (b) What are the causes of market concentration (c) Are business mergers good or bad for the economy Explain why
Identify the incentives to produce and price the product for a traditional monopoly and natural monopoly. Is it best for society, i.e., does society receive more welfare, to have natural monopolies provided by a private firm or by the government.
Prior to opening his hardware shop Bob worked as an investment banker earning $175,000 each year. He pays his employees $150,000 per year.
Assume that the Bank of China wishes to peg the rate of exchange of its currency, the yuan, in terms of the US dollar. In each of the following situations, should it add or subtract from its dollar foreign exchange reserves? Why?
Explain whether every of the following transactions involves spot exchange, contract, or vertical integration.
where L1 is the number of workers employed in Sector 1 and L2 is the number of workers employed in Sector 2. The total number of workers in the economy is 1,000. The only difference between the sectors is that in Sector 1 workers are paid their ma..
Derive the equation for the IS curve, derive the equation for the LM curve, explain why each of the following statements is true. Discuss the impact of monetary and fiscal policy in each of these special cases.
Assume Bank A, which faces a reserve requirement of 10%, receives a $1000 deposit from a consumer.
You have calculated the expected NPV of project A to be $3,758 and that of project B to be $3,114. Can you be certain that you should recommend to your management to implement project A.
Most countries abandoned the gold standard during the 1930s. What was the key event of that time period that led to the end of the gold standard What did countries want to do that the gold standard would have prevented them from doing 2) Both the..
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