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When the government runs a deficit, it spends more than it collects in tax revenue. To make up the difference, it borrows. So if it runs a deficit of 7 trillion ducats, debt increases by 7 trillion ducats. So debt next year is 147 trillion ducats. Suppose that there is no growth in real GDP and inflation is equal to -2% per year. (Negative inflation is the same as deflation.) Measured in ducats, what will GDP be equal to next year?
Explain how many units of blood wil be used in the US. What is the level of consumer and prduce surplus.
Describe the slope of the isocost and isoquant curves, and hence derive a relationship between the productivity of capital and the productivity of labour.
In your opinion, does the Houston Medical Center, in which many hospitals gather, represent an example of perfect competition, monopolistic competition, collusive oligopoly.
Illustrate what is the reorder point for part if the reorder point is expressed in terms of the inventory on hand rather than the inventory position.
Elucidate what is the effect of such tax on economic efficiency also the effect on economic equity. Do you think this was a popular tax.
What is the output of each firm if they collude to produce the monopoly output? What profit does each firm earn with such collusion.
Use the capital-asset pricing model to predict the returns next year of the following stocks, if you expect the return to holding stocks to be 12 percent on average.
An agency is having problems with personal phone calls made during working hours.
Appalachian Coal Mining should minimize net cost by choosing that level of pollution
Why do you think macroeconomists focus on just a few key statistics when trying to understand the health also trajectory of an economy.
Two consumers Jorge and Admen, together own 1,000 baseball cards and 5,000 Pokémon cards.
Compute the short- run and long- run results, explain the changes in the price and in the number of firms.
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