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1. Explain how an increased federal budget deficit resulting from a recession can actually help stabilize an economy.
2. Describe how adjustments in wages and prices take the economy from the short-run equilibrium to the long-run equilibrium.
3. Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command-and-control system.
4. Although GDP per capita is the most commonly used measure of a country's success, many economists believe it does not give an accurate measure of a nation's economic well-being. Some studies have concluded that that GDP is not the best measure of well-being, and although it may be the best available on a timely basis, other factors need to be considered in addition to GDP to give a more accurate picture of economic well-being and the disparity of well-being between nations. Clearly identify at least three such factors that in your view should be included in the GDP calculations. Explain and illustrate how they will help to improve the GDP as a tool for measuring the well-being of a nation.
consider the supply decisions of a firm with sr cost functioncq 1200 125q4a write out equations for marginal cost mc
Suppose a soft-drink firm is grappling with the decision about whether or not to introduce to the market a new carbonated beverage with 25 percent fruit juice. How might it use the six decision steps to guide its course of action?
Describe and explain EIA's forecast for the price of gasoline, coal and natural gas. Identify the factors that are affecting the forecast. Discuss specifically the impact of shifts in supply, shifts in demand, and examples of substitutions
As more potentially life-saving, but expensive drugs come to market, patients and insurance companies have difficult decisions to make. While in theory people would pay anything to save their own life or that of a family member, the efficacy of so..
In each of the following examples, what are the significant differences between government-owned and nongovernment-owned enterprises? Why do you think the government owns the enterprises mentioned?
Analyze how production and cost functions in the short run and long run affect the strategy of individual firms.
Discuss the various forms of organization. Evaluate the organizational form that would be most efficient in minimizing the Principal-Agent problem.
A manager tells his workers that they must perform their duties in the exact manner and order that he has commanded, with no exceptions. He is using
Why would someone want to buy Treasury Bills as opposed to investing in mortgage backed securities? Explain in terms of risk factors
Fluctuating and rising gasoline prices. Make your analysis on this topic and relate it to the US economy. Determine the three or four segments of our economy that are affected through fluctuating prices for gasoline.
Suppose that Marie’s marginal utility from consuming one more unit of bubble gum is 10 utils while her total utility from consuming one more unit of cake increases from 130 utils to 142 utils.
Suppose there is a market for an industrial compound, Weon. This industrial compound is used as an input for production of cleaning agents.
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