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Rather than generating tax revenue as do tariffs, subsidies require tax revenue. Therefore, they are not an effective protective device for the home economy. Do you agree?
A) What are the long-run average and avoidable cost functions? B) What is the profit maximizing level of output?
Can the market in which this firm operates be in a long-run equilibrium? Briefly explain.
Are these kinds of policies easy to implement in practice? How has globalization of production affected our ability to control pollution?
Consider Irving Fisher’s two-period model. If y1 = 20, 000, y2 = 15, 000, the interest rate r equals 0.50 (50 percent), What the maximum possible consumption in period one? What the maximum possible consumption in period two? if there is a binding co..
A store is offering a sale where if you buy two pairs of shoes at $30 each, you get the third pair for free. What is the marginal cost (in dollars) of the third
Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 6%, the growth rate of the velocity of money is 2% and that the real economic growth rate i..
Draw a Production Possibilities (PPC/PPF) graph and show what happens when new technology improves communication. Draw a Supply and Demand graph and show what happens in the market for housing when interest rates rise. Identify and define consumer an..
Each month, aztec spends exactly $2 million on advertising. Illustrate what is aztec's elasticity of demand for advertising. Can you write the equation for Aztec's demand for advertising.
Jon consumes only two goods: coffee and donuts. When the price of coffee falls, he buys the same amount of donuts and more coffee. Draw a indifference curve and Budget line diagram to illustrate Bob's pattern of consumption. What does this tell us ab..
Explain what a hegemonic system is and discuss why a hegemonic distribution of economic power would lead to a more open international economy.
Assumptions make the nation easier to understand because they simplify reality and focus our attention.
Illustrate what means does it use to hedge against exchange rate risk. Using this information, illustrate what do you think would be effect of increases/decreases in dollar's exchange value on firm's profitability.
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