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Q. Considering example in this context, explain how effect of labour-saving technology on PPF is similar to effect international trade has on people's consumption possibilities if nation imports hot dogs from foreigners
Q. Explain and illustrate graphically relationship between price consumption curve of a normal good and a consumer's demand curve.
Suppose production price is 20. The firm views that price as beyond its control.
The national economy has been in a slump for several years, but recent signs of strength in much of the economy have led many forecasters to conclude that an expansion could finally be in the offing.
Illustrate what is the natural rate of unemployment for this economy. Assume the economy has been in equilibrium for a while also the inflation rate is 15%.
If Starbucks demand and supplies for premium coffee (one-pound bag) are in equilibrium and demand rises substantially. Illustrate what will happen if this market moves to new equilibrium.
If personal taxes were decreased and input productivity increase simultaneously, the equilibrium: output would rise, fall, price level would necessarily fall, or price level would necessarily rise.
Illustrate what effect does the income tax have on consumption and labor supply? Explain your results in terms of income and substitution effects thoroughly.
Explain how does the existence of money reduce the costs of making transactions, relative to a society based entirely on barter.
Considering companies operate in their own self interest, should cartels be legal.
Elucidate why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.
John Adams wrote his wife that his office is the "most insignificant office that was the invention of man."
illustrate what is the profit maximizing quantity that should be offered to Group B
Compute GDP for Joe using both the product and income approaches and show how they must agree.
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