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Which of the following is an example of productive inefficiency?
A) Scientists discover a new substance that dramatically increases potential steel production.
B) A demographic boom leads to a rise in the number of workers in the labor force.
C) The rate of unemployment falls to zero.
D) Computer technicians are forced to clean the restrooms rather than perform their normal duties.
E) Due to economic growth, the economy reaches a new point along its production possibilities frontier.
Consider two communities. In one community, ten families have incomes of $100,000 each and ten families have incomes of $20,000 each. In the other community, ten families have incomes of $200,000 each and ten families have incomes of $22,000 each. Wh..
Illustrate what are the levels of income per worker also consumption per worker. Show how capital stock per worker will evolve over time in both countries.
Explain how the global supply chain functions of (a) logistics and (b) purchasing can be used strategically leverage the global supply chains for a manufacturing company producing mobile phones.
Twin brothers Ryan and Mike co-own Stamps and More, an independent shipping business they established shortly after graduating from college. While initially struggling during the first two years of operation, the business eventually turned a profit i..
If the government imposes a quantity tax on the consumption of a good, it means that the consumer has to pay for each unit of the good its price plus the tax. Denote by t the amount of dollars a consumer has to pay for every unity she consumes in exc..
On a hill overlooking the Susquehanna River, two big wind turbines crank out electricity for Kroger Co.'s Turkey Hill Dairy in rural Lancaster County, Pa., allowing it to save 25% on its power bill for the past two years. Show the effect on the publi..
Consider an economy in a steady state with population growth rate n, a rate of capital depreciation Delta, and a rate of technological progress g(growth rate of y* in steady state). At the steady state change in k tilda = 0, where k tilda equals capi..
"No firm is completely sheltered from rivals; all firms compete for the consumer dollars. If that is so, then pure monopoly does not exist." Do you agree? Explain. How might you use Chapter 6's concept of cross elasticity of demand to judge whether m..
Global outsourcing has cost the U.S. economy far more than one million jobs since 2001, or somewhere between 15 and 35 percent of the total decline in employment since the onset of the 2001 recession. What will it likely do to lawyers' wages? How doe..
If the central bank sells euro 1 million of bonds and banks reduce their borrowings from the central bank by euro 1 ?million, predict what will happen to the money supply.
Use the theory of liquidity preference and the market for real money balances to illustrate graphically the impact of a decrease in income on the equilibrium interest rate. Be sure to label: i. the axes; ii. the curves; iii. the initial equilibrium v..
Illustrate what are the fours upply factors of economic grwoth. what is the demand factor? What is the efficiency factor.
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