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Question: Assume that X is produced in a perfectly competitive industry where firms that currently operate and potential competitors both have identical cost curves. Current output is 1 million units a year. What happens to industry equilibrium if a public agency competes with existing producers of X and gives away 100,000 units per year to randomly selected people who would otherwise have purchased X. Does the output of X fall in the short run? In the long run?
How will output and inflation in both the short run and the long run be affected if the effects of the tax cuts are stronger on long-run aggregate supply than on aggregate demand?
Write a list of the characteristics of terrestrial versus Jovian planets. List five ways in which Pluto does not fit either category.
Describe how free market features could be introduced to help alleviate the problem
Why should Americans care about extreme poverty in Haiti, Ethiopia, or Bangladesh?
Imagine a country that produces only two goods, pork and beans. The following table shows the maximum combinations of pork and beans that can be produced (With full employment of resources, fixed amounts of resources, and fixed technology)
The girls begin squabbling over who gets to use the family's iPad. Mona intervenes to stop the fight. Using the Raven and French model of power, what might Mona say to end the fight?
On the other hand, suppose that the Fed has a goal of 10% inflation. Use similar logic as in the previous question to show what the Fed must do to the money supply.
The short-run aggregate supply curve is upward sloping for all of the following reasons except:
a firm that you have done business with recently. What industry does this firm belong to? For example, McDonald's is a firm in the fast food industry. What market structure would this industry fall under? What are the names of other firms in this ..
Suppose you purchase a 3-year, 5-percent coupon bond at par and hold it for two years. During that time, the interest rate falls to 4%. Calculate your annual holding period return. Assume that the coupon bond has a face value of $100.
Marginal benefit is the:
explain several dimensions of the shareholder-principal conflict with manageragents known as the principal-agent
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