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Explain Kuznets’s inverted-U hypothesis. Find appropriate data of one country from either Asia, Africa or South America for five consecutive years to construct the Kuznets curve for that country. Show the curve graphically and explain why it supports or does not support the hypothesis. Remember to provide citation of your source of data.
Consider the Ricardian model. Home has 1200 unites of labor available. It can produce two goods, apples (A) and bananas (B). The unit labor requirement in apple production is 3, while in banana production it is 2. Describe the patterns of trade (incl..
How do the three equations that define general equilibrium in the AS/AS model differ (or not) when describing an economy using (i) adaptive expectations or (ii) completely credible central bank?
Budweiser (now owned by a Belgium based beer company called In Bev), Miller and Coors who together produce 85% of all beer consumed in the US, each spend well over$250 million a year on television advertising campaigns, promoting their beer brands. D..
On the first day of the New Year to get her business started, the owner/photographer of Exquisite Portraits Inc. paid $200 for business cards, $1000 for a listing in Yellow Pages, and $250 for an annual business license. What are the monthly fixed co..
You and your roommate are in a tough position. Both of you value a clean apartment at 100, and a dirty apartment at 30. The total cost of cleaning the apartment is 80. Layout this situation as a simultaneous move game. What is the equilibrium?
A basic feature of the Keynesian view was that. Government purchases rise by $50 billion. According to Keynesian economists: The Keynesian theory predicts that an increase in the supply of savings will.
Explain how the “incidence” (i.e. “Who pays the tax”) of a per-unit tax on transactions depends upon the slopes of the supply curve and the demand curve. You may utilize graphical analysis to explain your answer as well.
The state of Minnesota is considering building a highway through undeveloped wilderness. The construction will take 1 year and the construction costs are estimated at $10 million. The annual routine maintenance costs are expected to be $1 million per..
Enterprises conduct business transactions with other enterprises for a number of economic, business and strategic motivations.
An amusement park faces large fixed costs of $500,000 per month and low average variable costs of $10 per visitor. It charges all visitors a flat entry fee of $50 for unlimited rides. The park currently has 42,000 visitors a month and proposes to rai..
Santa Claus has preferences between milk and cookies. Draw indifference curves to represent the following types of preferences: a) Santa likes milk and cookies, and always gets the same satisfaction from 1 ounce of milk as he does 2 ounces of cookies..
Explain and illustrate graphically relationship between price consumption curve of a normal good and a consumer's demand curve.
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