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Discuss and explain with the help of a graph, how in a long run every perfectly competitive market will earn just normal profit, no excess profit and no less.
Analyze the various means of taxation available to finance the government and evaluate the alternatives to taxes. Identify if there is an economic limit to the extent to which the government can increase taxes. Justify your response.
For a normal good, the income and substitution effects
Actual GDP in a country is estimated to be 10% below potential GDP. Prices are virtually unchanged from one year ago. Unemployment is 12% of the labor force (much higher than the natural rate of unemployment). Which of the following policies would be..
In 2001, an outbreak of hoof-and-mouth disease in Europe led to the burning of millions of cattle carcasses. What impact do you think this had on the supply of cattle hides, hide prices, the supply of leather good, and the price of leather goods? Can..
changes would most likely bring economy to a full employment level of national output. What is income multiplier.
Choose at least three of the barriers to entry listed below that affect the market in which your business operates (or a company of your choice). Explain how these barriers affect your company. Economics of scale - Barriers created by government - Es..
Can you identify the consequences of a strong dollar or a weak dollar in the United States? Which direction do you prefer for the overall health of the American economy? Should the U.S. take measure to ensure that the dollar retains its dominant role..
Combinations of goods on the production possibilities frontier
Suppose an industry has 100 firms, each with supply curve P = 50 + 10Q. Furthermore, suppose the market demand curve is given by P = 200 - 0.9Q. What is the industry supply curve?
An automotive part must be machined to close tolerances to be acceptable to customers. Production specifications call for a maximum variance in the lengths of the parts of .0004. Suppose the sample variance for 30 parts turns out to be s² = .0005. Us..
The demand equation for a cola-type soft drink in general is Q = 20 -2P, where Q stands for quantity and P stands for price. Calculate point elasticities at prices of 5 and 9. Is the demand curve elastic or inelastic at these points? Calculate arc el..
Suppose that the parents of a young child decide to make annual deposits into a savings account, with the first deposit being made on the child’s 5th birthday and the last deposit being made on the 15th birthday. Then, starting on the child’s 18th bi..
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