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Q. Assume that two countries both have per-worker production function y = k1/2, neither has population growth or technological progress, depreciation is 5 percent of capital in both countries and country A saves 10 percent of output whereas country B saves 20 percent. If A starts out with a capital-labour ratio of 4 and B starts out with a capital-labour ratio of 2, in long run:
Explain why might Industries in industries with high fixed costs be inclined to prevent strikes or end strikes quickly.
On aggregate demand does fiscal policy have a strong impact. Explain the shift of the federal budget from deficit to surplus during the 1990s weaken aggregate demand.
The president of the United States announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Predict what happen to interest rates if the public believes him.
If the farmer rented her land from a landowner, would she have the same incentives to control soil erosion. Illustrate would the landowner have an incentive to control erosion.
Elucidate use blue points (circle symbol) to plot the federal debt as a percentage of nominal GDP for each of the six years.
Suppose instead that the station seeks to maximize its profit from sales of the DVDs. Illustrate what price should it charge. How many DVDs should it order from which supplier.
In your paper, write your first-person account of how human interactions in your community have been realized.
Compute the corresponding Compensating and Equivalent Variation. Illustrate your answers graphically. Compute the compensating demands for goods X and Y. Illustrate your answers graphically.
An airline transportation consultant offers the CEO of Blue Star struggling new commercial airline company
When prices are ($4, $2), Valerie chooses the bundle (9, 18), and when prices are ($1, $2), she chooses the bundle (8, 14). Is Valerie's choice of bundles consistent with the Weak Axiom of Revealed Preference.
Suppose a duopoly and let demand be specified by P=A-BQ. In accumulation both firms have same marginal cost c. Interaction between the two firms will be frequent infinite.
Suppose that a firm has "pricing power" and can segregate its market into two distinct groups based on differences in elasticities of demand.
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