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Assignment:
It's time to apply what you are learning to understanding real world events. Pick an article that considers a current economic issue and analyze, using what you've learned so far in macroeconomics (and micro!) ) For this assignment you are to read the article, answer the following questions, and explain the economic significance of this article. In 2-3 pages (space and a half) you should:
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Suppose that black and white workers are complements in the sense that the marginal product of whites increases when more blacks are hired.
With no government action to control pollution, what is the marginal social cost of the electricity generated and the deadweight loss created?
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A 30-year mortgage for $140,000 is issued at a 9% nominal interest rate. What is the monthly payment? How long does it take to pay off the mortgage.
Now suppose that x 2 is also free to vary. Derive the demands for the inputs and the long-run cost function of the firm - Draw the two cost functions on the graph. Do they cross? Which one lies higher?
If you were the Minister for Agriculture in the Western Australian Government, and the Grain Industry Association of WA asked you to support their members by imposing a legal minimum price, would you support or reject their request. Use an economi..
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