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A current account deficit is a very healthy thing. If we can get foreigners to give us real goods and services and talk them into taking pieces of paper in return, why should we want anything different?" Do you agree or disagree with this statement?
Studies indicate that the price elasticity of demand for cigarettes is about .4. If a pack of cigarettes currently costs $2, and the government wants to reduce smoking by 20 percent, by how much should it increase its price?
Discuss the relationship between each of the following variables based on the experience of U.S. economy over the past 30 years.
The price elasticity of demand for a textbook sold in the US is estimated to be -2.0, whereas price elasticity of demand for books sold in overseas markets is -3.0.
Conventional telephones are frequently breaking down, and it takes months to get a new line installed. Firms are thinking of adopting new parallel wireless system offered by private firms,
Compute utility function that corresponds to a constant Arrow-Pratt measure of absolute risk-aversion.
Elucidate what are the differences among horizontal, vertical, and conglomerate mergers. Is one type preferable from the view of anti-trust policy.
This post denotes a practice question for the Sherman Act.
Assume the government increases education spending by $20 billion. How much additional consumption will this increase cause?
Do comparision with the economics of the two following service producing alternatives.
Explain why may a government solution to a marketplace failure worsen the market failure.
Elizabeth has $35,000 in an investment account, but she wants account to increase to $100,000 in ten years without making any additional contributions to the account.
At which point do you reach equilibrium. Also explain why is that considered equilibrium.
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