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If an economy is producing inefficiently, it is
a. possible to increase production of all goods simultaneously.
b. possible to increase production of one good at the expense of another.
c. not possible to increase production of any good.
d. not possible to increase economic growth.
Suppose that, the economy initially at full-employment, the cantral bank increases the money supply. b. How are output and unemployment connected?
Assume the U.S. is a SMALL OPEN economy and the European Union is a LARGE OPEN economy. In addition, suppose the EU cuts tax rates and increases infrastructure spending. Assume the U.S. is a small open economy and has balanced trade. Suppose Congress..
If the demand curve is QD = 100 - 10P and there is a $1 price increase, then the elasticity of demand at P = 2 is
Illustrate what are the opportunity costs for the manager of being in this business relative to returning to his old job. What is the economic profit of the business.
Explain four major potential advantages of foreign direct investment for a developing country? Provide specific example of a developing country to depict at least two advantages
In its rivalry with Westinghouse, General Electric instituted a "price protection" plan. This plan stated that if GE lowered its price, it would rebate the price difference to its past customers. Show that this plan makes collusion between GE and Wes..
What are the four market types? Give an illustration of each. From a social standpoint, what is the problem with monopoly? Discuss this using an example for illustration.
Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables.
Why is it that a profit-maximizing businessman would always raise prices when facing an inelastic demand curve, but might or might not raise prices when facing an elastic demand curve? Explain and justify your answers in detail
Increase or decrease in the money supply increase the price level to the tolerable range
Compared to Netflix, Blockbuster had very little data on their customers, or understanding of their preferences or behaviors. Which Netflix advantage had the most impact on Blockbuster’s business model becoming disrupted?
Explain in words why rising prices decrease the multiplier effect of a shift in the aggregate demand curve. Think about the impact of an upward sloping aggregate supply curve and assume that imports remain constant relative to the aggregate demand sh..
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