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Determine whether each statement is true, false, or uncertain and explain why. Answers with no explanation will receive no points. Note that it is possible to answer each question for full credit with a few sentences.
a. If a market is efficient, government intervention is never warranted.
b. As of 2014, the US government's spending and revenue financing policies have led to a decrease in income inequality compared to that observed in the 1960s
Shortages of resources such as water, food, and building supplies are a problem many communities face after a natural disaster occurs. Some communities have even enacted laws to prevent “price gouging,” the practice of asking very high prices for pro..
The Family and Medical Leave Act of 1993 (FMLA) guaranteed maternity leave to many working women across the U.S. However, the law only applied to firms with 50-or-more employees; employees of smaller firms were not covered by the FMLA. Suppose that p..
Some labor contracts today are being negotiated for longer durations. What are the advantages and disadvantages to negotiating longer contracts?
Suppose buyers of computers and printers regard the two goods as complements. When an increase in the cost of producing computers
What output will firm choose. What will be monopolistic competitor's average fixed cost at output it chooses.
Do you agree or disagree with the decision in the Lambert case (p. 323, textbook). Explain by making EXPLICIT reference to any of the principles of Contract Law (say which one(s) you are using) that are in the Chapter.
If the economy was experiencing a severe recession, which of the following combinations of monetary and fiscal policy actions would be most appropriate?
What warnings would you give forecasters in using statistical demand equations for estimating consumer demand? How can the problems associated with using static equations in a dynamic world best be dealt with? Elaborate.
What might you reasonably expect of an industry in which firms tend to have economies of scale?
One of the key issues facing operations managers involves vertical integration versus outsourcing. What are they and what are the tradeoffs involved in each?
Every week, more and more apps are available for Droid-based smart phones. How does this affect the optimal price for Droid-based smart phones?
Why does it make sense for a firm to shut down in the short run if the price falls below minimum average variable cost?
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