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1. How is economic growth measured?
2. How would you describe the pattern of world economic growth over the past 2,000 years? Approximately when did economic growth really take off?
3. What are five human welfare conditions that are positively affected by economic growth?
You can either spend spring Break working at home for $80 per day for five days or go to Florida for the week. If you stay home, your expenses will total about $100. If you go to Florida, the airfare, hotel, food, and misc.
Demand for flower bouquets in a suburban town is described by: QD = 50 - 5 P + 2 Y, where Q is quantity, P is price per unit, and Y is an index of consumer income. Similarly, supply is described by QS = 10 P - 5. a) If Y = 100, what is equilibrium..
Consider the following short-run production function ( where L =variable input, Q=output): Q=10L - 0.5 L2 Suppose that output can be sold for $10 per unit. Also assume that the firm can obtain as much of the variable input (L) as it needs at $20 p..
Markovich Corporation is considering building a new plant. It will cost $1 million today to build it and it will generate revenues of $1.121 million three years from today. Of the interest rates below, which is the highest interest rate at which M..
The market has changed since your company bought the machine; it now seems possible that it could be sold for as much as $20,000 5 years from now; what is the present value (i=4%) Will this affect the company's taxes
Explain why the drought will lead to a rise in the price of bread.
Use the diagram for this exercise to draw a level of aggregate expenditures that would lead to an economy at an equilibrium, E, with a real GDP of $8 trillion.
a firm has 1100000 in sales a lerner index of 0.62 and a marginal cost of 55 and competes against 1000 other firms in
Tax evasion is sometimes described as ‘‘contagious,'' meaning that an increase in evasion encourages yet further evasion. In such circumstances, is the only equilibrium to have everyone evading?
Suppose demand for vaccination against whooping cough is Q=200-2p and supply can be represented as p = 22 +Q/4. Suppose the external benefit to society of immunisation is B =Q/4 . The government considers subsidizing individuals to get immunized.
compute the demand schedule showing the number of workers hired for all wages from zero to $100 a day. What happens to this demand curve if the price of output rises from $10 to $12 per unit?
Suppose there are n people born each period. What is total saving in the economy? (Hint: Add up the saving of each age group. Remember that some age groups may have negative saving.) Explain.
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