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Hulu is a streaming entertainment service that lets you a basic at $7.99 per month and a premium at $39.99 per month. Hulu stated ,the difference in the cost of service provision between each plan or option seems to be basically the same (it streams content to your device and automated software handles advertisements, availability of local or sports channels, etc.). How do you explain the wide variety of prices for virtually the same service, given that the cost to Hulu of providing each plan is basically the same?
Consider a small open economy operating a fixed exchange rate. Compare the effects on domestic real GDP of an increase in government spending under each of the following circumstances:
If the Price level rises does consumption (C) increase? This is relating to the Wealth Effect.
Suppose that Brazil is capital abundant and Chile is natural resource abundant If timber is natural resource intensive and computers are capital intensive, then: (a) Chile will produce more computers after trade begins with Brazil. (b) Brazil will pr..
Question One: Since we have so many different ways to produce a forensically sound image, why do you think we need more than one? Is there some advantage of one over another?
Inflation may fall without a significant increase in unemployment if
In 2010 in the country of Arlandia government debt was zero. You know that the government revenue for 2011 was $344, for 2012 was $360, for 2013 was $380. The government outlays for 2011 were $197 and for 2012 were $237. If you know that government d..
According to the neoclassical view of labor markets, what is the likely effect of an increase in the federal minimum wage on the employment of low-wage workers? Describe and show graphically. What happens to the aggregate earnings of low-wage workers..
Consider an economy with two sectors, high tech (H) and low tech (L), and three types of workers: scientists (S), managers (M) and blue-collar (B). S and B are the septic factors of the H and L sectors, respectively. Managers can work in both sectors..
Explain the math and graph of the Life Cycle Theory of Consumption. Using this equation and graph of the Life Cycle Theory of Consumption, explain how a consumer would react to winning the lottery vs. gaining a significant pay raise at work. Explain ..
The inverse market demand for fax paper is given by P = 400 − 2Q, where Q = q1 + q2. There are two firms who produce fax paper. q1 is output of firm 1 and q2 is output of firm 2. Each firm has a unit cost of production equal to 40, and they compete i..
What is the impact of free trade on domestic job creation policy? Elaborate with examples. What are the impacts of outsourcing and off-shoring on trade liberalization (globalization) and economic structure?
Consumption is $6 trillion, investment is $2 trillion and government purchases are $2.5 trillion. The country exports $1 trillion and imports $1.5 trillion. Find net exports and solve for the level of aggregate demand.
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