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Explain why businesses and entrepreneurs are more likely to voluntarily undertake the projects that consumers value highly relative to price and less likely to undertake the government-sponsored projects in which the per-unit cost of production is above the price consumers willingly pay.
Using the GDP Deflator, calculate the following: What is the GDP Deflator?
Calculate the own price elasticity of demand at this values of prices, income, and advertising.
Explain and graph how the economy can “fix itself” and move to the long run equilibrium? Will the price level at the long-run equilibrium be greater than, less than, or equal to 110?
A bilateral agreement has enabled China and South Korea to increase trade and increase in a trade deficit with the United States, what are some of the advantages and disadvantages for the United States?
Assume she cannot borrow or lend in any way, and U(c1,c2) = c1*c2; what would be your advice regarding her consumption decisions for the two periods of analysis
ABC corporation has the following activities that should generate book/tax differences in 2014: Purchased $100,000 of 5 year property. Straight-line depreciation is used for book purposes. Assuming a 25% federal tax rate, and a 6% state tax rate, how..
Can the Federal Government discriminate among states when setting tax rates? Explain the main characteristics of the libertarian ideology. Do they have an Organic or Mechanistic view of government? Explain concisely what a natural experiment is and i..
In its rivalry with Westinghouse, General Electric instituted a "price protection" plan. This plan stated that if GE lowered its price, it would rebate the price difference to its past customers. Show that this plan makes collusion between GE and Wes..
What is happening to the domestic price level? Explain in one sentence.
In the land of Chin there are two distinct and equally numerous peoples: Yins and Yans. The Yang have historically been stronger and more aggressive that the Yins. What is the most likely source of the wage differential between the Yin and Yan paddle..
What competition you might experience? How you would determine the price you would sell your product? and, How much product you would produce?
Eddies precision shop is insured for $700,000. The present yearly insurance premium is $1.00 per $100 of coverage. A sprinkler system with an estimated life of 20 years and no salvage value can be installed for $20,000. Annual maintenance costs for t..
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