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Increasing the minimal wage above the market level can have significant drawbacks on the labor market, particularly increased unemployment. What other policies can you suggest to promote consumers' purchasing power without adversely affecting the labor market? Explain
Zelda Industries is the only firm of its kind in the world. Due largely to historical accident, it began producing streganomas in 1985 in a vacant warehouse. Virtually anyone with a degree in college chemistry could easily replicate the firm's formul..
Many movie theaters and restaurants offer discounted prices to senior citizens. According to Economic principles, the best explanation for this is that senior citizens tend to be
Illustrate what is the average labor productivity, in terms of square feet per painter-hour.
An analysis was conducted in 1999 to find an association between autism and the rubella vaccine. Children who were linked to have the rubella vaccine
A study finds that leaf blowers make too much noise, so the government imposes a $10 tax on the sale of every unit to correct for the social cost of the noise pollution. Describe the impact of the tax on the number of leaf blowers sold. What is the s..
Calculate the value of REC's unlevered equity. Calculate REC's enterprise value after the recapitalization plan is announced.
What is the present worth of the savings over the next 5 years? Ten years? The interest rate is 10%.
What are the typical types of risk faced by a firm? Explain each type of risk in details.
A prominent senator has calculated the total social benefit of the currant amount of space exploration at $3 billion per year. The total social cost of space exploration is currently only $2 billion. The senator argues that there would be a net gain ..
In the Romer endogenous growth model, what three factors determine an economy’s growth rate? Briefly explain (and ideally show in an impulse-response diagram) how a change in each factor affects growth.
1. Describe the circular flow model of the free-market system.
What is autonomous consumption? Can you explain what autonomous consumption means and use it in an example?
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