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Consider two competitive economies that have the same quantities of labor (L = 200) and capital (K = 200), and the same technology (A = 20). The economies of the countries are described by the following Cobb-Douglas production functions:
North Economy: Y= A L^0.40 K^0.60
South Economy: Y = A L^.60 K^.40
In which economy is the marginal product of capital larger?
most wild asian tigers are the common property of the humans and governments that control the land they inhabit. why does this pose a significiant problem for maintaining the wild tiger population in the future
Here are some hypothetical numbers used to illustrate the ideas of trade-offs, specialization, and comparative advantage. Assume Sri Lanka, using all her.
This reduction in demand will push the equilibrium price and quantity back to its original level. Since the equilibrium price remains unchanged, smokers will consume the same number of cigarettes" Do you agree or disagree with this view?
Huntington suggests that the emerging global economy will increasingly be faced with violent clashes between civilizations. Elucidate what Huntington means by the term civilization and why such clashes may be expected.
Suppose Congress votes to decrease corporate income tax rates. Use the AD/AS model to analyze the likely impact of the tax cuts on the macroeconomy. Show graphically and explain your reasoning. What exactly causes AD and/or AS to shift? What happe..
To increase tax revenue, the U.S. government in 1932 imposed a 2-cent tax on checks written on bank account deposits. (In today's dollars, this tax would amount to about 34 cents per check.) a. How do you think the check tax affected the currency-..
Question 1: Using supply and demand analysis, explain and illustrate graphically the effect of the following situations. Population growth surges rapidly; The prices of resources used in the production of good X increases;
Explain. Problems and Applications a. Dutch pension funds holding U.S. government bonds b. U.S. manufacturing industries c. Australian tourists planning a trip to the United States d. an American firm trying to purchase property overseas
Select one Economics related article from the Wall Street Journal, the New York Times or the Economist that pertains to Money and Banking.
a monopolist has determined that marginal revenue is 2.00 and average cost is 1.75. it has also determined that the
Plato's attempt to explain the world around us. Just picture it: You are chained to the ground and all you can see in front of you is a cave wall. There is a light source behind you, which casts reflections on the wall. What do you think you would..
Suppose that an raise in a household's disposable income from $40,000 to $48,000 leads to an raise in consumption from $35,000 to $41,000,;
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