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Factor shares
For a neoclassical production function, show that each factor of production earns its marginal product. Show that if owners of capital save all their income and workers consume all their income, the economy reaches the golden rule of capital accumulation. Explain the results.
email has become an indispensable part of global business. internet customs vary among countries and communications
If leisure is a normal good, the Laffer Curve can have an inverted U-shape only if leisure and consumption are (at least at some point) sufficiently substitutable such that the substitution effect (on leisure) outweighs the wealth effect (on leisu..
Between 2009 and 2010, the quantity of cars produced and sold decreased by 20%. Through the same period, the cost of gasoline increased by 20% and the price of cars increased by 5%. We know that the cross elasticity of demand of gasoline is -0.3. Cal..
Which of the following statements below support how revenues of the relevant firms would change given the following events: Oil well in Eastern Pennsylvania close because of environmental violations reducing the annual revenue to drillers in eastern ..
Giving practical example discuss the implication of leaders inflexibility in adjusting their leadership style
Suppose the demand function for some good X is given by QDx = 1000 - 5Px + 3Py + 12M, where QDx is the quantity of x demanded, Px is its price, Py is the price of good Y, and M is average consumer income. This good is normal and goods X and Y are sub..
After Apple introduced its new iPhone, the price of standard cell phones rose. A consumer advocacy group that has long claimed that standard cell phone producers are colluding like a monopolist asserts that this is further evidence
The problem is from economics and it is explore the Inflation targeting and the difficulty for the Federal Reserve in adopting inflation targeting and whether implementing inflation targeting is good or not is also discussed in the solution.
suppose that in 1984 the total output in a single-good economy was 10000 buckets of chicken and the price of each
Suppose that you are in the business of providing cat grooming services and you are a member of an association who has proposed legislation anybody wanting to offer cat grooming services would have to pay for extensive training and pass a series o..
Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20%. Households deposit $10,000 in currency into a checking account at the bank and that currency is added to reserves. What level of excess reserves..
Companies that produce toilet paper bleach the paper to make it white. Some paper plants discharge the bleach into rivers and lakes, causing substantial environmental damage. Suppose the following graph illustrates the situation in the toilet pape..
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