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Consider the theory of liquidity preference. How does it help explain the downward slope of the aggregate-demand curve?
One of basic economic laws is ‘law of one price.' It says that provided certain assumptions one would expect that if free trade is allowed, illustrate what three of those assumptions likely are.
1. What category of budgets are the governance board more likely to be interested in? 2. With a long-term view, which specific two budgets are the most relevant to the governing board and for what reason?
Draw the graph representing the market for loanable funds. Label the demand curve D1 and the supply curve S1. Given D1 and S1, if the banks charged 10% interest on loans, what would the situation be in the market. Is there a shortage or a surplus? By..
If collusion is not allowed, what kind of market arrangement do you think is likely to result from competitive interactions among these four firms? Calculate the profits of these firms in either case (a and b).
Explain is a high degree of market concentration a boon or threat to consumers. What is the strongest argument on either side.
"As vice president of sales for a rapidly growing company, you are grappling with the question of expanding the size of your direct sales force (from its current level of 60 national salespeople). You are considering hiring from 5 to 10 additional..
Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX? Compute the loss in social welfare when an $8 per unit price floor is imposed on the market.
Although inflation has been steady at a 2.5% average rate, economists now see trouble on the horizon due to the increases in crude oil prices over the next eight years. The leading economists in the oil industry expect oil prices to inflate; at first..
Firm i produces its product in a perfectly competitive market. In the figure below, the Average Total Cost and Marginal Cost of producing that product are given by the ATC and MC curves, respectively. Find the profit maximizing quantity, and call it..
Analyze how the Solidarity (Solidarnosc) movement in Poland led to the collapse of communism in Poland. Point out what events led to the growth of the Solidarity movement, and then identify and analyze the events that followed Gorbachev's policy of p..
Suppose the economy is in a long-run equilibrium when the government increases spending on defense. Now, suppose the Fed responds by increasing the reserve requirement, draw an aggregate demand/supply diagram that illustrates both the long-run and th..
Bell company has stock outstanding as follows, $10 par per share, 140000 shares, preferred 5%, 100 par per share, 8000 shares.
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