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Question: Referring to the 2001 recession, an editorial in The Economist titled "Restoring the fiscal option" (January 17, 2002) argued that "In the United States, 9 months after the recession began, Republicans and Democrats are quarrelling over which ill-conceived measures to include in their stimulus package-as if to prove right those who say that fiscal expansion always come too late to be any use." Is that right? Is fiscal policy often too late to be helpful?
Ethanol blended with gasoline can be utilized to power a flex fueled car. One particular blend that is gaining in popularity is E 85, which is 85 percent ethanol and 15 percent gasoline. E 85 is 80 percent cleaner burning than gasoline alone, and it ..
The government wants to raise $50 a month from John Doe. A $1sales tax per package of cigarettes will raise the required revenue as will alump-sum tax of $50 per month. (With a lump-sum tax, John has to pay$50 regardless of how many cigarettes he buy..
Suppose the information in the following table is for a simple economy that produces only the following four goods and services: textbooks, hamburgers, shirts, and cotton. Assume that all the cotton is used in the process of producion.what is the ..
Recall our example of an investment of $100,000 in research that yields a pioneering invention that has no commercial value, and a subsequent investment of $50,000 in development that yields an improvement that has commercial value of $1 million. Ass..
Analyze the differences in costs of production and determine the firm's profitability. Specifically, if market prices change, what does this mean for the profitability of each business?
Monetary Transmission Mechanism: According to the Keynesian school, show what happens, step by step, when the Federal Reserve sells US treasury bills to US banks. Quantity Theory of Money: According to the Monetarists and Rational Expectations, expla..
In the late 1990s, car leasing was very popular in the United States. A customer would lease a car from the manufacturer for a set term, usually two years, and then have the option of keeping the car. If the customer decided to keep the car, the cust..
Discuss the possibilities inherent in using "diversification" of global operations as a risk-reducing strategy - Discuss these points of view, particularly concerning the crucial role of risk in determining foreign investment.
Discuss why an understanding of the role played by economics in social issues is important for people who are not economists to understand. Provide specific examples to support your response.
Give an example of how you would use this information to set the price for your product in the market place and explain one factor in detail about how shifting demand and supply curves makes market demand estimation difficult
Explain in words and with a graph why a 15 cent per gallon tax on milk could be collected from milk producers or from milk consumers at the store with the same result?
Give some examples of waiting lines in everyday life. What decisions should managers of such systems consider? Try to consider the production line as well as waiting in the queue.
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