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"The problem with our democratic institutions is that they dont correctly reflect the will of the people! If the people rather than self-interested politicians or lobbyists- had control, we wouldnt have to worry about government taking actions that dont maximize allocative and productive efficiency" Critique
If there are zero transaction costs, firms prefer to hire employees over independent contractors. Employees shirking on the job is an example of moral hazard. Tournament compensation theory predicts that the pay for a CEO is set at a level equal to t..
The labor market for NBA players is perfectly competitive. The Labor Supply curve is Q= -20+3w. The marginal expenditure curve is ME= (2Q+20)/3. The Labor Demand curve is Q=125-2w. The Marginal Curve is MR= (125-2Q)/2. Both the players and owners do ..
All points on the SP curve (but not on the LP line) share the characteristic that the economy is not in the long-run equilibrium because
On September 18, 2003, hurricane Isabel struck the North Carolina Coast, causing extensive damage. For several days prior to reaching land the National Hurricane Center had been predicting the hurricane would come on shore between Cape Fear, North Ca..
Should the Federal Reserve System control the nation's money supply? Defend your position using economic principles.
For each of the following cases, find the future value at the end of the deposit period at the given nominal interest rate. For the following mixed stream of cash flows, determine the future value at the end of the final year if deposits are made at ..
Delineate which market participants you believe benefited from the final court decision and whose interests were harmed.
First Bank has total deposits of $2,000,000 and legal reserves of $220,000. a. If the reserve requirement is 10 percent, what is the maximum loan that First Bank can make, and what is the maximum increase in the money supply based on First Bank's res..
inflation was 3% last year, expectations are adaptive, and the phillips curve equation is pi = pi + 0.5 (Y -Y*)/Y*. What will the inflation rate be this year?
For each item in this list, please explain whether it would be considered a pure public, quasi-public or pure private good. (TIP: Think about whether the item has shared consumption and/or exclusivity to determine what type of good it is.)
Suppose that the market for engagement rings is in equilibrium. Then political unrest in South Africa shuts down the diamond mines there. South Africa is the world's primary supplier of diamonds. What will happen.
Which of the following statements about B2B market segmentation is MOST true?
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