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The challenge that an economy will be facing is how to deal with an externality. You will find that an externality is a cost or benefit to a third party. A positive externality is a benefit to a third party and an example of that would be education. How do you think the government can increase the amount of education within the economy?
The average 50 year old worker is paid several times more than workers in the teens and 20's. Older workers have more human capital and higher MRP's Employers engage in widespread discrimination against younger workers Young people lack information a..
Trevor consumes two goods: fruit (good x) and vegetables (good y). His demand for fruit is given by x(px,m)=.04m-4.24px. His income is $322, the price of fruit is $2, the price of vegetables is $1. If the price of vegetables rises to $3, calculate to..
In a price leadership oligopoly model,
You are a builder of fiberglass boats in very competitive markets. Fiberglass is derived from crude oil which has recently risen in price. Using diagrams, show what happens to the cost curves of your firm and to the market supply curve due to the inc..
Suppose you are offered a job at $50,000 per year in atlanta where the cost of living index is 217.210. A second job in San Francisco promises to pay you the same real income (purchasing power) as the Atlanta offer. What nominal salary must be offere..
Calculate the real interest rate over the past 24 months using the 30 year Treasury bond rate as the nominal interest rate and assuming that expected inflation was equal to actual inflation (based on the change in CPI). Make sure to include the fishe..
if demand is perfectly elastic the demand curve is horizontal. if demand for x shifts right as the price of good y increases, then x and y are substitutes. supply shifts rightward if input prices rise. it is possible for an economy to be inside its p..
q.an economist claims depends on an econometric study that high profits in a certain industry are explained by that
A group living in the United States in 2004 consisted of fifteen households with no elderly members. There were five single individuals living separately from each other (less than 65 years old). Their incomes were $7,000, $7,500, $8,000, $9,000, and..
In which markets will firms probably have the most difficulty recouping their investment in technological innovations?
Defines how entrepreneurship is used as an orientation to business. Explain how entrepreneurship differs from traditional business in management, strategy, and opportunity seeking.
In the Keynesian-cross model, an increase in the real interest rate shifts the expenditure line _____ and short-run equilibrium output _____.
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