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Toys are produced by a competitive industry. Santa Claus gives away one million free toys each year. It costs Santa nothing to produce these toys.
Use a diagram to show how the existence of Santa Claus affects the supply of toys, the price of toys, the number of toys that consumers acquire, and the number of toys that are provided by commercial manufacturers.
A monopolist with a straight-line demand curve finds that it can sell one unit at $7 each or seven units at $1 each. Its marginal cost is constant at $6 per unit.
Distinguish between the resources market and the product market in the circular flow model.
Elucidate the importance of credibility when evaluating a firm's potential moves.
Describe the current state of the U.S. economy using the two monetary aggregates (M1 and M2) currently published by the Federal Reserve. In your description, illustrate the trends of the two monetary aggregates. . Evaluate what the Federal Reserve Ba..
Substantially dependent on minimally dependent on totally dependent on independent of
Discuss the types of situations where you would expect to see non-constant variance in the data. Provide examples to support your response. Describe a specific instance where heteroscedasticity would be a problem and the remedial measures that could ..
What is the discrepancy between net benefits and the benefits cost ratio? That is, typically why is the maximization of net benefits the same as the maximization of the benefits cost ratio?
Suppose that the income tax in a certain nation is computed as a flat rate of 5 percent, but no tax is levied above $50,000 in taxable income.
Does that face help explain why such governments would rather subsidize an industry’s export sales than its sales in the domestic market?
What is the equilibrium Price and Quantity in the market? Now suppose the government imposes a special tax on these computers. Describe what would happen in this market in terms of the supply and demand curve.
q1. are recessions a necessary fact of macroeconomic life? if not illustrate what would it take to eliminate them? if
Suppose you have two goods, ice cream and macaroni(an inferior good to most people). show graphically what would happens when the price of the ice cream decreases and income increases.
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