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A fictional survey shows a decrease in drug use by young people in Brooklyn. In the ensuing debate, two hypotheses for the decreased drug use are proposed:
(1) Increased police efforts have decreased the availability of drugs on the street and (2) Pursuing drug education efforts have increased awareness of the dangers of addiction.
a) Use supply and demand diagrams to show how each of these claims is consistent with a fall in the quantity of drugs consumed.
b) You learn that the market price of illegal drugs is falling. Which hypothesis is consistent with this information on drug prices?
Clarke's workers are highly skilled artisans with a great deal of job mobility. What impact would the wage increase have upon the firm's employment.
In country B the opportunity cost of 100 gallons of beer is 0.95 tons of cereal. Both countries can experience gains from trade if the exchange rate for a ton of cereal is 96 gallons of beer
By what reasons financial crisis as well as either United States is going in right-wrong direction among its present strategies.
Calculate the original market equilibrium price and quantity in absence of the price support policy.
Why do proponents of active policy recommend government intervention to close an expansionary gap. Some economists argue that only unanticipated increases in the money.
Carefully explain the concept of the reaction function in duopoly analysis.
Relative to Tom, does Dick require more bananas, less bananas, or the same number of bananas to give away an apple.
What are price indexes designed to measure. Outline how they are construed. When GDP and other and other income figures are compared across time periods.
Identify one positive or negative supply shock in the last decade and what is the impact that the shock has had in our economy.
Compare the effects of an aggregate-demand-induced recession with an aggregate-supply-induced recession.
If the government uses a tax to get producers to internalize their externality, what is the net price received by producers.
Amalgamate the information you have gathered and tell the economic consulting firm which actions you think OPEC will take over the next year based on your answers.
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