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German unification involved massive expenditures for infrastructure in the east, as well as transfer payments to many former East Germans. Should such expenditure have been financed by (a) money creation because of their transitory, exceptional nature, (b) debt, or (c) taxes? Justify your answer.
Using the concept of price elasticity explain why the price of basic commodities has to be regulated in price rise.
Show graphically and explain why the imposition of a minimum wage results in both winner and losers in the labor market. On your graph identify the gains to the winners and the losses to the losers.
The production function is Q = L^0.25*K^0.25 and the respective unit input prices for L and K are w=4 and r=9. Derive the long-run least cost as a function of Q, and derive the marginal cost and average cost to characterize the shape of the total ..
A country club knows that each of its customers has a demand curve for golf rounds of q = 500 – p, where q is the number of rounds bought in a year and p is the price per round of golf. Furthermore, because it is so exclusive and there are not many m..
Long-run Macroeconomic Equilibrium and Stock Market Boom Let us assume the economy reaches its long-run macroeconomic equilibrium in 2020. When the economy is in the long run macroeconomic equilibrium, the stock market will also reach its boom.
What are the key features of the consumption function? What causes consumption to rise or fall? Does the level of consumption deserve concern today?
If a market is perfectly competitive and is in long-run equilibrium, which of the following conditions does not hold?
The BRICS (Brazil, Russia, India, China, and South Africa) nations are increasingly important in international business. Provide a comprehensive description of the economy of each of these nations and identify reasons why the BRICS countries are grow..
In what ways does the concept of the prisoner's dilemma contribute to our understanding of environmental problems? Regarding global warming, deforestation, and ocean dumping, what are the sources of the problems (political, economic, and social)? Who..
How can we measure the opportunity cost of producing a good? Using a bowed outward production possibilities curve between ice cream and hammers, identify graphically the opportunity cost of obtaining an additional hammer. Does economic growth elimina..
During the average month in 2006 she was logged onto the Web for 17 hours. Illustrate what is the average cost of an hour of Web time to Kety. What is the marginal cost of an additional hour.
Explain how many tons of coffee does the United States import. If the world price of a computer is $500, what is the world price of a ton of coffee.
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