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Classical economic theory says there is a linkage between investment and savings. Explain the source of this linkage. What is the argument that says this link is not as strong as classical economists believe? (Hint: Differentiate between the parties that save and those that invest, and their rationale.)
The price elasticity of demand for the final product affects the own-wage elasticity of demand for labor by affecting the magnitude of:
Suppose a firm faces the following demand for its output q: q = 100 – 10p, where p represents the price it receives per unit sold. The level of output at which this firm maximizes its total revenues is [q]. (NOTE: write your answer in number format, ..
The following data concern a new product to be launched by ABC Inc. Estimate the selling price per unit.
The US government decides to reduce the government budget deficit by increasing taxes and keeping government expenditures at the existing level. What are the effects of increasing taxes in the short and medium run for the US economy?
Annual starting salaries for college graduates with degrees in business administration are generally expected to be between $30,000 and $45,000. Assume that a 95% confidence interval estimate of the population mean annual starting salary is desired. ..
Illustrate what does your anticipated adjustment process imply about the CR for the industry.
Suppose that demand is given by P = A− Q and marginal costs are constant and equal to c where A > c. Suppose that there are n ?rms and the stage game is Cournot. Find the critical value of the discount factor to sustain collusion if the ?rms play a s..
Many conspiracy theories have been offered as explanations for the assassinations of the great leaders of the 1960s and still fascinate society today. Share some of those conspiracy theories. What contributes to the belief in conspiracy theories?
The kingdom of Arendelle has equal numbers of two types of workers, domestic servants and ice sellers, which both earn $1,000 per week. All workers face a risk of being laid off next year due to bad market conditions, in which case they will have an ..
Your product fails about 2% of the time, on average. Some customers purchase the extended warranty you offer in which you will replace the product if it fails. Would you want to price the extended warranty at 2% of the product price? Discuss both mor..
Assume the simple spending multiplier equals 10. Determine the size and direction of any changes of the aggregate expenditure line, real GDP demanded,
Which of the following is important if forecasting is to have the desired positive effect on decisions?
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