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Banks fail when all depositors try to withdraw money at same time. One way to stop this problem would be to need banks to hold 100 percent of deposits on hand. Why would this not be a desirable thing to do? What would happen to the banking system? What would you expect to see happen to the cost of a checking account if banks could not make loans? What would happen to the amount of investment made by businesses? Explain your answer.
Essay on Market imperfection associated with negative externalities.
Think about a company that has been a state-owned, natural monopoly. If it is privatized, what kind of regulatory policies could the government follow, and what impact might they have on the firm.
Illustrate what trends do you see in the data sets. What would you say to Support your assertions of trends with statistical evidence.
A monopolist encounters the following demand curve: P=120-0.02Q-What is the level of production, price and total profits per week?
Use a production possibility frontier to illustrate the probable results of your fiscal policy. By how much did consumption change? By how much did savings change?
Identify whether the subsiquent issues are macroeconomic or microeconomic and explain why you categorized them in that way.
Assume that, from an initial consumer equilibrium position, price of good X falls while the price of good Y remains the same.
Draw the demand curve for the bridge crossings. How many people would cross the bridge when there were no toll? What is the loss of consumer surplus associated with charge of toll of $4.00
Assume a country that basically consumes 100 pairs of shoes per hour, all of which are imported. The price of shoes is $40 per pair before a ban on importing them is imposed.
Assume two firms, A and B, serve a market with demand D(p) = 11 - p. Also assume that (i) firms compete for market share
Illustrtae what were the challenges that these policy makers perceived at the time in terms of both the Business Cycle and broader social policy.
There is a vast number of hog farmers in Canada. Industry should be a good approximation to perfectly competitive market. The demand for processed pork in Canada is;
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