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Market Value of the final goods and services produced in the domestic economy= $1,15,000 of which goods worth $10,000 are distributed among the Tsunami Victims. Net factor income to abroad= 4000 and the govt. is offering subsidies to the producers of $15,000 for selling goods at a loss of $1 per unit. Find factor income of the residents of the country.
Explain the difference between demand pull inflation and cost-push inflation, illustrating your answer with examples of each
Elucidate explain why after such unprecedented economic growth, technical advance economies still experience economic cycles and stagnation.
Calculate the value of the objective function over the 5-year period and which policy is best? Why?
ABC Corporation is a small Canadian company that sells staples in Canada, which is a very competitive market. The staples can be classified as a standard commodity, with stores viewing staples as identical to those supplied through other companies.
The nation is divided into __12______ Federal Reserve districts, each having a Federal Reserve Bank.
Assume the graph below represents the market demand for a patented prescription drug together with the marginal cost and average cost functions for producing the drug. Draw the marginal revenue function for this firm.
Do you think that monetary policy should cooperate with fiscal policy? If so, why? How could their joint actions affect the level of the debt-to-GDP ratio?
Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.
Prove that a diminishing marginal rate of substitution either implies nor is implied by diminishing marginal utility.
According to the neo-classical economic theory, the market is a natural, self-regulating system that tends automatically towards the full employment equilibrium of supply and demand.
Describe arbitrage and the law of one price. What role do they play in a market-based system. What do we call the 'one price' of an asset.
Explain how and why the firms demand curve for labor will compare to that of the firms operating in a competitive product market, and the consequences for the firms employment of labor. No graphs or calculations are needed.
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