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Q1. Explain how immigration between two countries could be an equalizer of wages and economical for both sending and receiving countries. Relate the question to Mexico and the United States of America and use a graph to explain. Discuss the challenges of applying the theoretical concept into practice in the short-term and long-term.
Q2. Suppose the consumption function is C = $400 billion + 0.9Y and the government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially before multiplier effects?
Can you think of circumstances in which each industry would exhibit the same capital-labor ratio in both countries.
Suppose that the demand for healthcare services is perfectly inelastic while the supply curve is upward sloping. Analyze the impact.
They value campaign funding in terms of dollars spent. Therefore, after spending ci on a campaign.
Explain the paradox of why new cars usually lose a large fraction of their market value the moment they are driven from the showroom. Identify the economic principle that explains this paradox.
Russian farmers, again, have a poor crop. Their government has announced that they will not ban exports. Discuss the impact on domestic and world prices, consumers and producers the effects of the Russian government's decision.
In the country of Sildavia, a market basket of goods and services cost $ 130 in 2003, $ 140 in 2004, and $160 in 2005. Based on this information and considering 2003 as the base year, inflation from 2003 to 2005.
Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.
Find the output you should produce in order to maximize your expected profits so that you can then determine your expected profits accurately.
For every firm in group B , long-run ATC curve is U-shaped and intersects the long-run MC curve when ATC = 10 and output is 6.
What reliance performance would be measured efficient. Elucidate reliance behavior which would be considered excessive.
As before pleasing the job, you admit a surprise offer from a competitor. Elucidate how much producer surplus have you earned, if you actually earn $2600 during the month.
What other economic factors are affected when taxes are raised or lowered, and how are they affected. Should the government increase tax rates on everyone as a way to equalize incomes and wealth.
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