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Postal Service
Many would consider the U.S. Postal Service a public good. Is this assumption valid? Identify at least three arguments for and against the postal service being a public good. Use at least one example for each argument.
Examine the tools of fiscal policy also explain how they are used to reduce inflation or eliminate a recession.
Suppose that this price cut was completely responsible for its raise in revenues from 460 million yen in 1966 to 640 million yen in 1967. Compute the indicated arc elasticity of demand.
Suppose Bank of Canada (BOC) purchases $100 million worth of government bonds from a chartered bank. Assume BOC imposes 5% legal reserve requirement ratio to the banking system.
Explain, illustrating with graphs as necessary-be sure that the shape of your supply and demand curves make economic sense.
From each pair of goods, pick the good for which demand will most likely be more elastic:
Describe departmental cost driver rates depends on direct labor hours for assembly also machine hours for cutting.
Define in general the term "internalize the externality" and explain its application in this case. Discuss a policy other than a tax or subidy that could cause individuals to internalize the externality. Explain briefly.
List four reasons why analyzing the economy is not as precise as the multiplier model makes it appear.
Are they required to ensure economic growth and a prosperous country.
Explain why user cost, or scarcity rent, arises in the intertemporal allocation of a depletable resource such as minerals, and some types of energy and aquifer water resources.
When the Bank of Canada sells the government bonds to a commercial bank, the commercial bank experiences a decline in reserves and in increase in bonds. Total assets are unchanged; this is just a portfolio switch between bonds and cash.
Provide brief but theoretically sound explanation for each of the following.
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