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If a severe drought decreased labour productivity in Zambia, explain what will happen to each of the following.
potential GDP
employment
the real wage rate
Suppose instead that use of the Sonoma county buy local currency is completely voluntary. Who is the most likely to use this currency.
Absolute and comparative advantage: Explain how these concepts describe the benefits and costs of international trade.
Suppose the services of a road are subject to congestion after 50,000 vehicles per hour enter the road. Assume that it is feasible to price road services on an hourly basis. Create a graph similar to the one in Figure 4.2 of the textbook to show how ..
Elucidate the relationship between P > AVC and a firm's contribution margin, when a firms is making a decision to shut down operations.
If a single bank faces a required reserve ratio of 20%, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is the MAXIMUM amount of money this bank could create (add to the money supply)?
You are running a company that is owned by stockholders. Your goal is to maximize shareholder value. Explain how each of the following events is likely to affect shareholder value and identify uncertainties related to their effects.
For out Back Steakhouse, seating capacity is limited in the short run.
Compute the average revenue and the marginal revenue of a fully competitive firm and illustrate in diagrams both the curves of the average and the marginal revenue.
Explain how do you think which these individuals would rank the utility of these similar expenses for themselves.
When the Finance Division computed the marginal cost of an engine, it discovered that the new engines were much more expensive than rival engines, even accounting for the expected fuel savings. No one purchased teh engine. How would you make sure ..
Given a sample of observations on yt and xt what is the most efficient estimator of mu? Is this estimator unbiased? What is its variance? What is the OLS estimator of mu?
Why are usage-based insurance rates lower than at-rate insurance fees? Give two separate reasons and explain.
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