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Two objectives discussed when considering uniformly mixed fund pollutants were the economic efficient level of pollution and cost-effectiveness. Graphically, show what is meant by these two objectives. Cost-effectiveness is considered the more appropriate objective for our current situation. Why?
Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken and the price of each bucket of chicken was $15. In 2005 the price per bucket of chicken was $20 and 23,000 buckets were produced. Determine the GDP price ind..
When Kodak leased large photocopiers to businesses, they also bundled a maintenance contract for periodic repairs. Third-party repair firms claimed that Kodak violated antitrust laws because this bundle guaranteed Kodak a monopoly on repairs and excl..
Examine the level of business activities in the U.S. economy over the past few months. Which trends do you find of interest? What stage of the Business Cycle is the U.S. economy, given the current levels of business activity?
Elucidate how which any two pure strategy equilibria of a zero-sum game are interchangeable also equivalent.
The Investment demand curve is a useful tool to summarize an important and complex relationship in the economy.
Construct a representative indifference curve for each of the following situations. (Note: Even though some of the goods described exist only in discrete quantities, draw the IC assuming the goods exist in continuous quantities). The two goods are wa..
Gross Domestic Product (GDP) only measures the value of marketed goods and services for a country during a given period of time. Is the GDP measure underestimating or overestimating national production and total income in the economy? Why? What are t..
What effect does population growth have on economic development? Why have most developing countries followed inward-oriented development strategies?
Explain why calculating GDP using income approach or expenditure approach yield the same for any economy. Use the idea of circular flow to explain how expenditure approach and income approach is shown in the circular flow diagram. What are the two fl..
What does the term "INTEREST RATE INVERSION" refer to? For the past several years, the Federal Reserve System has forced short-term interest rates to nearly zero. Why has it not been able to do the same for long-term interest rates? Explain
Assume that you own a 10-acre plot of land that you would like to rent out to wheat farmers.
What are two ways that economists have tried to quantify the value of non-market work so that it can be added to GDP to produce a more inclusive measure of economic activity?
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