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Explain how each of the following events will affect the budget line. (use a graph too if you think it will help)
a. an increase in the money income of the consumer.
b. a decrease in the price of both products.
c. an increase in the price of only one of the products.
Elucidate how long must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.
The firm, Beta, is under a bad management such that the dividend payment is expected to decrease at a rate of 4% per year. Suppose the recent dividend payment is $3 per share and the stock price is $30. What is the required return of the stock? If no..
Where does all the water go? According to the Environmental Protection Agency (EPA), in a typical wetland environment, 40% of the water is outflow; 50% is seepage; 7% evaporates; and 3% remains as water volume in the ecosystem. Compute the weighted a..
Suppose that in voting fraud around the country the government is forced to spend billions of dollars in legal fees. Analyze the effects of such a massive increase in government spending in both the classical and fixed price Keynesian models when the..
Why do points on a utility possibility curve represent efficient allocations of resources? Why must the utility possibility curve be downward sloping
Elucidate using the example of multiple equilibria in the labour market. Illustrate diagrammatically
Are these kinds of policies easy to implement in practice? How has globalization of production affected our ability to control pollution?
The demand for bread will fall if more Americans go on a low diet. The cost of bread will fall due to the decrease in the demand for bread.
what part of the change in Sarah's demand was due to the income effect and what part was due to the substitution effect?
If an economy experiences a decrease in consumer spending, most economists believe:
For each year from 2006 to 2009, calculate the dividend yield, the capital gains yields, and the total return to the stock. Express your calculations in percentage terms.
Using the national income identity find the value of imports (IM). Illustrate what is the current account balance. Illustrate what is the savings rate.
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