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Question 1: How do price controls affect the market?
Question 2: Provide a real-world example that takes consumer surplus and producer surplus into consideration.
What are the three sources of funding a national debt? Why are they all problematic? Why is foreign debt far more problematic for a country than domestic debt?
Describe what happens to price of a bond that pays a fixed percent of the face value every year when interest rates in the economy rise.
1. Name 3 strong acids and write their formulas. What makes an acid strong?
Why a country may want to manipulate the value of it's currency? What is a managed float currency and fully floating currency? What is exchange rates?
Elucidate why is it that market leaders and monopolies generally acquire rather than develop new technology.
1. In a recession, tax payments tend to increase and transfer payments tend to decrease. T/F 2. By engaging in "maturity transformation" commercial banks transfer risk due to interest rate changes from themselves to the depositors. T/F
I expect a payment of $104 one year from now. My discount rate is 4%. What is present value of the payment to be recieved? How much if 5%?
What are the early-Mover advantages these rivals sought in India? Do either of two firms have "overwhelming" resources to overcome India's liability.
Is it possible for a firm to have an absolute advantage in producing something without having a comparative advantage?
What is the importance of trade agreements, and how is international trade related to the standard of living of the United States (as opposed to that of a small industrial nation or to a developing nation)? What significance do trade agreements h..
What is the internal purchasing power of the Canadian dollar? What is the internal purchasing power of the euro in France? What is the implied exchange rate of CAD> EUR that satisfies absolute PPP?
Suppose the utility function for a consumer is given by U = min{X, 3Y}. Sketch 3 indifference curves for this consumer.
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