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Suppose a firm purchases labor in a competitive domestic labor market and sells its product in a competitive international product market that covers the whole world. Domestic producers represent a small portion of the world market and have no influence on the product price. The firm's elasticity of demand for labor is ?0.5. Suppose the wage increases by 6 percent. What will happen to the number of workers hired by the firm? What will happen to the marginal productivity of the last worker hired by the firm? Explain.
How vegetarians sometimes have trouble making sure they get enough protein in their diets.
Why is depreciation of capital good a cost of society. In illustrate what ways does a person's health depreciate. Why might older people's health care expenditures increase in Grossman model even though their desired health stocks may be lower.
her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound.
What type of inflation occurs if workers ask for higher wages and firms must raise product price in order to pay their workers?
Explain by how much does the total amount of deposits in the banking system increase. By how much does the money supply increase.
What is happening to the value of the U.S. dollar these days? What causes the value of the U.S. dollar to rise or fall? Who demands U.S. dollar? Who supplies U.S. dollar?
What is an absolute advantage? What is a comparative advantage? Give an example where you have an absolute but not a comparative advantage
Suppose price of Treasury bill falls to $925. Illustrate what is interest rate.
Which he can trade at the going prices. He has no other source of income. Illustrate what is Nick's gross demand for x.
A test is conducted in eight cities to see if giving away free transit system maps will increase bus ridership. In a regression analysis, the dependent variable is the increase
Social responsibility other than to make as much money for their stockholders as possible. Explain why you agree or disagree with such a statement.
q1. a has the u.s. economy experienced inflation or deflation during recent recessions? elucidate.b can the inflation
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