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Define net exports. Explain how U.S. exports and imports each affect domestic production. Suppose foreigners spend $7 billion on U.S. exports in a specific year and Americans spend $5 billion on imports from abroad in the same year. What is the amount of the United States' net exports? Explain how net exports might be a negative amount.
Provide an estimate of the cross-price elasticity of demand for gasoline, both with respect to new cars and with respect to used cars. Are these estimates statistically significant? Do they align with economic theory? Give an interpretation of y..
The local operations manager for IRS must decide whether to employee 1, 2, or 3 temporary employees. He determine that net revenues will vary with how well taxpayers comply with new tax code.
Suppose the government wants to set a ceiling price that induces the monopolist to produce the largest possible output. What price will accomplish this goal?
Identify the diversity challenges that Coach Boone had to face by coming into the head-coaching role.
Suppose the consumption function is C = $500 billion + 0.9Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially (before multiplier effects) with: A) $50 billion increase in governm..
The Micro Brewing Corporation asks you to forecast changes in consumer beer purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $5.50 to $7.50, the quantity demanded.
imagine that the current price of waste disposal is 0.025lb and the average waste disposal is 2.40 lbpd. when the price
By inspecting the AP and MP curves, can you tell if you have drawn them correctly? Why?
Describe the argument of yardstick competition to control policy-makers. What are the main difficulties if yardstick competition is to be applied in practice to control performance of policy-makers?
It is interesting to note that technical improvements in agriculture or manufacturing have generally been slow to arise in countries that have relied on slave labor. Can you think of a reason why this might be so?
If the Fed now raises required reserves to 20 percent of deposits, what is the change in reserves and the change in the money supply?
FULL KARMA FOR COMPLETE RESPONSES. In an infinitely repeated game between two firms, suppose that each earns a payoff of 20 if they collude on price and 20 if they compete on price. If one firm sets the collusive price and the other "cheats", the ..
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