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Question: A website offers a place for people to buy and sell emeralds, but information about emeralds can be quite imperfect. The website then enacts a rule that all sellers in the market must pay for two independent examinations of their emerald, which are available to the customer for inspection.
a. How would you expect this improved information to affect demand for emeralds on this website?
b. How would you expect this improved information to affect the quantity of high-quality emeralds sold on the website?
if there was no item in the economy widely accepted in return for goods and services how would transactions be made?
According to the Keynesian IS-LM model, what is the effect of each of the following onoutput, the real interest rate, employment, and the price level? Distinguish between the short runand the long run. Be sure to express graphically and explain in wo..
These the aggregate expenditure model developed in this chapter to explain the following statements: a. Coming amid continued turmoil in the financial and credit markets, the report sent stocks lower, with the Dow Jones Industrial Average falling 146..
Does this goal still apply to our understanding of the role of the business firm in society? Provide examples to support your understanding. Does government or society have a role to play in expanding the Friedman discussion?
A deep-water oil rig has just collapsed into the Gulf of Mexico. Its blowout-preventer system has failed, so thousands of barrels of crude oil each day.
Assume you are a broker at an investment advisory company. You and your client disagree on investment decisions he wants you to make decision on his behalf
How will you rank the countries for the investment decision based on the macroeconomic data, Justify. Present the scorecard you used in your analysis.
At a management luncheon, two managers were overheard arguing about the following statement: "A manager should never hire another worker if the new person causes diminishing returns." Is this statment correct.
What, if any, are this bank's excess reserves? How much new amount of loan will this bank be able to create because of the excess reserves? Answer part a and b if the required reserve ratio is changed to 8%.
given an mpc of .8 if the equilibrium level of aggregate expenditure is 80 billion and there is a reduction in
What are the merits of rate-of-return regulation, as it applies to natural monopolies?
Most countries import substantial amounts of goods and services from other countries. Yet the theory says a nation can enjoy a high standard of living only if it can produce a large quantity of goods and services itself. Can you reconcile these two f..
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