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Regulation is often justified in cases where some form of market failure would otherwise cause inefficient allocation of resources. Using relevant examples from an economy of your choice,critically analysis of the possible sources of market failure that might give rise to a need for regulation in the market.
Suppose Jane buys only two goods X and Y , and she spends an income I on these two products. Suppose the price of X is px and the price of Y is py. She derives utility by consuming X and Y.
Why does price elasticity of demand change as you move up the demand curve (more specifically, as the price of the product increases)?
Should you pay the 10 percent commission? Justify your response. Does it make a difference if your competitors routinely pay such commissions?
What were some of the benefits of how you responded? What were the opportunity costs? Did the benefits end up outweighing the costs or were the costs greater than the benefits?
The AD/AS Model with Supply-Side Economic Effects. Suppose the economy is characterized by (1) sticky wages and prices and (2) substantial supply-side economic effects. The economy initially (i.e., in Year 0) has a cyclical budget deficit.
Explain what is referred to as ‘Walrasian economics', its developed role in economic theory and pedagogy, and its likely prospects for providing satisfactory explanation of economic realities.
How and why the U.Ss deficit, surplus and debt have an effect on the Tax payers
What happens to the expected real interest rate? Explain why the subsequent path of the real exchange rate satis?es the real interest parity condition.
Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.
What are the key factors in this analysis, and how would your decision change if the assumed value of these factors changes?
Provide a succinct and relevant description of the company you selected and its management's efforts toward global expansion.
Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances.
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