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“When the firms in the industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand falls, causing prices to go down even a little bit, all of the firms in the industry will be driven out of business.” True or false? Explain.
q. assume that a household in a two-period model has income of 30000 in period 1 and 25000 in period 2 and the interest
The conventional wisdom has been that inflation is bad for the economy. If our inflation is running higher than our trading partners' inflation, according to this argument, our growth slows and jobs are lost. Explain how the mechanism described here ..
Back in July 2009, Matt Kistler, a senior vice-president at Walmart, claimed the company was making progress on achieving three major goals: (1) to be supplied by 100% renewable energy; (2) to create zero-waste; and (3) to increase the sale of renewa..
What is the total cost to Hildegard of finding a new plot of grass and getting y units of grass from it? Find an expression for her marginal costs and her average cost per patch of grass as a function of the
Illustrate what is the money multiplier. Illustrate what is the available lending capacity.
Do you think that the developing countries should be given special, favorable treatment in multilateral trade negotiations? Why or why not? Has such treatment been given to developing countries in the past? Explain.
A country has a fixed exchange rate and pursues and expansionary monetary policy. Explain, in word, any symbols what will happen. How is external balance affected? Is monetary policy effective?
You and other college students are deciding whether to major in music or engineering. You learn that there is a shortage of engineers making it easy for engineering graduates to find employment while there is a glut of musicians for whom finding a jo..
Imagine that last year, Jennifer earned $80,000 in salary, and consumed $50,000 in goods and $23,000 in services. How could we best categorize the remaining $7,000.
Suppose the logging industry forms a union that requires longer apprenticeships and charges high fees to its members. Discuss the reasons why loggers might place these stipulations on union members. What are the loggers hoping to achieve?
Susan is a single taxpayer, 26 years of age, with AGI of $28,000 and no tax exempt income. She did not have minimum essential coverage for 9 months in 2014. Compute Susan's individual shared responsibility payment for 2014. Do not round your calculat..
q1. a u.s. resident can earn 6 percent interest on a one-year bank deposit of 100000 at home. alternatively she can
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