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Consider 2 goods: yachts and vegetables. For each good, think of 2 markets: the market for the good itself, and the labor market for people producing those goods. Suppose that the government is considering a 10% tax on yachts and on vegetables.
Independent farmers in Kenya would grow coffee which they would roast and consume as a much-needed beverage. Show the circuit of production for this way of getting something to drink with breakfast. How is this circuit changed if the farmers exchange..
Solve for aggregate expenditures (AE) as a function of Y, and compute the equilibrium level of national income. Elucidate your equilibrium in a diagram with AE.
Gilberto is an owner of a professional sports team in a large league. To promote fairness, the team with the most losses in the league automatically gets the best new player to enter the league next year. Externalities are a shortcoming of the market..
Explain how the achieved trust level of a company’s communications using blogs and social media compare with similar communication efforts conducted using mass media and personal contact.
Graph the effects on the savings inter-temporal budget constranit. You are required to use the graphical representation of the llifecycle model's inter-temporal budget constraint. Assume a progressive tax system with 2 tax brackets are applicable for..
Technological innovations will cause:
The president of your college believes that the cost of a college education is far too expensive for students to afford and has decided.
An injection molder is purchased for $500,000 for a large scale commercial operation. Its expected life is production of 2 million plastic wheels. Its salvage value is $1,000. Using the units of production method, calculate the depreciation rate per ..
For both of the following utility functions, draw the indifference curves for the indicated utility levels, including at least three consumption bundles on each. Derive the formula for the marginal rate of substitution for each of the people in part ..
A firm has the production function x = f (L) , where x is output and L is labor input. The firm buys the input in a competitive market. What restriction do we have to impose on the production function to ensure the second-order conditions in problems..
A large city in the mid-West needs to acquire a street-cleaning machine to keep its roads looking nice year round. A used cleaning vehicle will cost $75,000 and have a $20,000 market (salvage) value at the end of its five-year life. A new system with..
In 2008, inward FDI accounted for some 63.7 percent of gross capital formation in Ireland, but only 4.1 percent in Japan (gross capital formation refers to investments in fixed assets such as factories, warehouses, and retail stores). What do you thi..
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