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Explain the so called fiscal cliff and expected impact for the State of Mississippi and Mississippi Delta and for the firms herein using the key words you may have learned. Key words may include buy not limited to demand or supply, elasticity, subsidies, consumer spending, business increasing, confidence, uncertainty, budget deficits, national debt, loss of credibility, double-dip, etc.
Show that, with a linear demand curve, the imposition of a per-unit tax on a monopoly will cause price to rise by less than the tax. Would this be true for a constant elasticity demand curve?
For several years, Palm was the dominant manufacturer of PDAs (personal digital assistants). However, a number of other manufacturers have since entered the PDA market.
Assume that a employee's skills can be summarized by the number of efficiency units she owns and the distribution of efficiency units in the population
What is the profit-maximizing price-output combination and what are the levels of the profits and consumer surplus at that point? What is Dead-weight-loss?
Acme make a decision to establish a sinking fund for its outstanding preferred stock issue. $975318642 represents the value of the issue that will be retired in 26 years
Explain how do governments borrow funds to finance deficit spending. What is likely to happen to interest rates in the market.
The opportunity price of an investment is the real rate of interest, and that's why investment demand depends on the the real interest rate.
Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.
Suppose the following data about the demand for goods and services. All variables are in billions of dollars. Suppose that potential level of output is $12,000 billion. Use the above data to calculate the size of the output gap?
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
Describe the major difference between the law of demand and the law of supply. Consider the supply and demand schedules below.
Question based on Derive and compare demand curve, Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?
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