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1. Is a family a household? Is a household a family? Why does the value of output always equal the income received by the resources that produced the output? What does it mean if net exports are negative?
2. Draw the circular flow diagram linking households, business firms, and the international sector. Use the diagram to explain the effects of a decision by the household sector to increase saving
An economy has the following cobb-douglas production function: Y=K1/3L2/3. The economy has 1000 units of capital and a labor force of 1000 workers. Congress cannot dictate how many workers firms hire at the mandated wage.
(GDP Price Index)The health expenditure component of the GDP price index has been rising steadily. How might this index be biased by quality and substitution effects? Are there any substitutes for health care?
Is the indecency in the production model a consequence of the existence of capital?
Suppose that the number of riders per day on the New York City subway system is 4 (million) when the fare is $2.00. Suppose that the ridership will drop to 3.8 (million) when the fare is raised to $2.25.
If the current stock of capital is fixed at 250 units, how many full-time workers should the firm employ if the weekly salary of each full-time worker (w) is $400 per week Compute the firm's level of output and profits per week in this short-run e..
For the next three questions, suppose a per-unit excise tax of $90 per guitar is levied on the consumers. What price will consumers pay after the tax is levied What proportion of the tax will be paid by the suppliers of Martin guitars
indicate that the short run price elasticity of demand for tires is 0.9. If an increase in the price of petroleum /used in producing tires) causes the market prices of tires to rise from $50 to $60
Are there ethnic variations in the effect of the sex of a respondent on educational attainment? A special case of a slope dummy variable is the interactive dummy variable defined as the product of two dummy variables. Using your EAEF data set, def..
suppose an economy's per-woker production function is y=3k^.5. Its saving, depreciation, and population growth rates are estimated at .2, .04, and .02 respectively. Calculate the steady state values of the capital-labor ratio, output per worker, an..
Value Lodges owns an economy motel chain and is considering building a new 200-unit model. The cost to build is estimated at $8,000,000; estimates for motel furnishings will cost an additional $700,000 and will require replacement every 5 years. A..
What are some procedures in connection with dispelling going concern questions?
Refer to Table 7-1. If the price of the product is $110, then who would be willing to purchase the product? Refer to Table 5-1. Which of the following is consistent with the elasticities given in Table 5-1?
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