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Question
How does income of the rest of the world {e.g., income of foreign countries} affect our domestic output?
Hint: How does income of foreigners affect our net exports (NH)?
In 1991, Brazil and Columbia united to form a coffee cartel and reduce coffee output. Suppose total costs for the cartel are: TC = 12 + 5Q + Q 2
What is the quantity of products that producers are willing to offer for sale at different market prices?
Grocery stores and gasoline stations in a large city would appear to be examples of competitive markets there are numerous relatively small sellers, each seller is a price-taker, and the products are quite similar.
A monopoly is manufacturing a level of output at which price is $80, marginal revenue is $40, average total expenses is $100, marginal cost is $40and average fixed cost is $10.
The risk free rate on a 30 year US Treasury Bond is 2.625% and the expected rate of return on the overall stock market is 7%. The BOW lake company has a beta of 1.4. What is the cost of equity?
What is your marginal rate of consumption (MPC)? If your income increased $1,000 per month until retirement, how much would your spending on consumption
We give praises to the marketplace system also to the institution of private ownership of resources. But here we will find cases where firms do not act in the best interest of society.
Compute the coefficient of price elasticity for the price ranges given in the schedule and complete the first column of the table. What do you notice about the algebraic sign of the values you have just computed? Why is this so?
What is the expenditure multiplier-explain this briefly? What does it multiply? When an economy is in equilibrium what the size of unplanned inventories is?
Consider two firms that act as Cournot competitors and face the inverse demand function p(.), where p'(Y1 + Y2) 0 i = 1,2.
Suppose as well, that all voters favoring liberal candidates will vote, while only 50% of those favoring conservative candidates will vote. Create a graph to show how the political equilibrium will differ from an election in which all citizens vot..
Explain the problem of deficient demand in an economy. State 2 measures to solve it.
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