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Which of the following goods or services would be most likely to be subject to (1) external economies of scale and (2) dynamic increasing returns? Explain your answers.
a) Software tech-support services b) Production of asphalt or concrete c) Motion pictures d) Cancer research e) Timber harvesting
What is opportunity cost? Explain with the help of an example, why assumption of constant opportunity cost is very unrealistic? Explain law of demand with the help of a demand schedule and demand curve.
Discuss the limitations of this model as an explanation of the effects of government expenditure on GDP.
Assuming individuals hold no cash (all cash is in bank vaults as reserves), calculate the simple money supply from the following reserves requirements and deposits in the systems. 5 Points each, 30 points subtotal
After her final exam this semester, Sylvia must drive from her school in Philadelphia to her home in upstate New York-What are Sylvia's expected .ne, expected wealth, and expected utility if she travels through PA?
Consider the following two good pure exchange economy: Alfred's utility function is U A (x, y) = min{x, y} and Bob's utility function is U B (x, y) = max{x, y}.
Prepare a table/graph for inflation in "your country" (use North Korea for the country; if no data is available, use India) for about the latest ten year period for which you have data.
What are the advantages of Fed increasing interest rates if the GDP gap is positive?
Calculate the expected level of demand in a typical market. Indicate the range within which actual demand is expected to fall with 95% confidence.
Define and describe the difference between the absolute advantage and the comparative advantage.
Use our discussion of price discrimination to justify this argument. What problems do you envisage in implementing the policy?
Suppose that all other banks hold only the required amount of reserves. If Nan Bank Inc. decides to reduce its reserves to only the required amount, by how much would the economy's money supply increase?
In the country of Wiknam, the velocity of money is constant. Real GDP grows by 5 percent per year, the money stock grows by 14 percent per year, and the nominal interest rate is 11 percent. What is the real interest rate?
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