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If the marginal costs increase (due to falling marginal product of a variable input), how does this change average (total) costs? How about average variable costs?
Suppose the price of beef is expected to rise to $3.10 in the U.S. and to £4.65 in Britain. What should be the one year forward $/£ exchange rate?
Discuss the difference between a unilateral and bilateral contract. Why is it important to be able to identify which type it is? Give an example of each.
Measles has become an epidemic here in Orange County. About 1 in 1000 people will die after contracting the disease. Because this is such a high rate, health officials in Orange County would be well advised to pay for anyone to get a vaccination.
How the budget affects economic activity. Explain when the government should have a budget deficit and when it should have a budget surplus.
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What if any difficulties do you think may be encountered in implementing the current policy being pursued by Fed Chairman Ben Bernanke to cope with one of the worst financial crises in the US since the Great depression?
Most industrial farms hire migrant workers, so the market for such workers is reasonably taken to be perfectly competitive. Suppose that all farms individually have a short-run elasticity of labor demand of 0.5. Explain why the reduction in employmen..
What are some of the ways a seller of goods might reassure a possible buyer who is faced with imperfect information? What are some of the ways that someone looking for a loan might reassure a bank that is faced with imperfect information about whethe..
What is the impact on equilibrium price and quantity if demand or supply or both change? Define full employment? Associated with? How many goals in the 1946 Employment Act? What is the impact on exports and imports of a currency devaluation? Revaluat..
Aside from retail sales and marketing, identify and discuss two ways that a business could reduce costs or increase profits by using the Internet or Web applications.
If the marginal cost is $1 and the market demand curve is P(Q) = 2000 - Q. Find the quantity produced by each firm and the market price.
In Solow’s growth model, illustrate using a diagram what will happen if population growth rate is reduced? What will happen to GDP? GDP per capita? Will GDP per capita grow at steady state? How does the extended Solow’s model help explain GDP per cap..
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