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--Identify and summarize the dynamics involved in both kinds of market failure presented.
--How are these different economic breakdowns similar and different?
--Using your knowledge from all of the textbook chapters, what are the best ways to solve these economic problems and why?
Calculate consumption expenditures as a percent of real GDP for all years and calculate GDP growth in 2011 and 2012.
q1. q10000-1000p0.05pop0.610.3awhere q is quantity p is cost pop is population i is disposable income per capita and
Suppose that a monopolist sells a product to consumers with an aggregate demand that is downward sloping in quantity, D(Q) = 200 − 2Q. The total cost of producing Q units is C(Q) = 20Q + 2Q2. What are the consumer and producer surpluses (CS and PS) a..
summarize how the test affected the court proceedings. Submit your paper as a Word document to your instructor. Remember to correctly cite your sources.
If the government uses a tax to get producers to internalize their externality, what is the net price received by producers.
What is the equilibrium income level and rate of interest? Suppose there is an increase in t from .15 to .20 . What will be the change in the equilibrium level of income and interest rate? Suppose there is a decrease in government expenditures (G) fr..
smaller multiplier means that change in government purchases of goods and services, government transfers, or taxes necessary to close an inflationary or recessionary gap is larger. How can you explain this apparent inconsistency.
All licensed drivers are required by law to purchase a minimum level of auto and motorcycle insurance (well, if they own either of the two). However, the vast majority choose to buy much more insurance than the required minimum. It’s also true that m..
Suppose the velocity of money is constant at 5 transactions per year, the price level for this year is $1, and real GDP this year is $8,000,000. Suppose the economy's output of goods and services rises by 5% each year. What will nominal GDP be equal ..
Suppose that the level of capital in the economy is 200 units, the depreciation rate is 10%, and the level of investment is equal to 10 units. In this case:
What will be the future worth of a series of 15 annual $1500 payments if the nominal annual interest rate is 7% and the interest is compounded quarterly?
The 12-month interest rate on dollar-denominated assets (like bank deposits) is 2.00%. The 12-month interest rate on euro-denominated assets is 1.80%. The current spot exchange rate is $1.50 per €. The current forward exchange rate is $1.58 per €. Ex..
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