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Monopolistic competition is similar to perfect competition in that: Select one: a. there are a large number of firms. b. firms earn economic profits in the long run. c. firms face downward-sloping demand curves. d. All of the answers are correct.
What does it mean for a good to be non-excludable in theory one may worry that such a problem could completely shut down private markets. How did we deal with that in designing a private environment for the public goods case so that this doesn't happ..
Suppose that the firm's production technology is given by Y= zF (K,N)= zK^aN^(1-a), where 0
In the early 2000s, analysts feared that low academic achievement in math in the United States may reduce U.S. economic growth by as much as half a percentage point a year. "That drag will become increasingly apparent…as other countries dismantle reg..
Suppose two types of students, those from rural areas and those from urban areas, apply to college. There are only two types of performances, excellent and poor. It has been found that a higher percentage of urban students perform poorly than rural s..
If the price of good A decreases by 5% and the quantity demanded of good B increases 10.2%, find the cross price elasticity of demand. Are the goods substitutes or complements? Why?
Suppose that inventories fall by $2 billion, consumption increases by $8 billion, unemployment insurance payments decline by $4 billion, and imports rise by $1 billion. By how much should measured GDP change?
discuss the major types of financial intermediaries in the U.S. and illustrate the differences in the way assets and liabilities are recorded on their balance sheets
What should you do with the outcomes that are not economic and may not be translated using monetary unit? (The answer can be more than one choice) Quantify the expected future results. Change the viewpoint of the problem.
the supply of paper is given by the following equationqs 5000p where qs is tons supplied per year and p is price ton.
The purpose of the is assessment is to analyze a scenario based on how inflation tends to increase prices and diminishes the consumers’ ability to purchase goods and services over time.
Define the four basic types of trade barriers. Who gains and who loses from a protective tariff? Explain. Identify the four major tools of monetary policy. Describe how a change in the Fed’s major policy tools leads to [1] expansionary and [2] restri..
A basic theory of underlying macroeconomic behavior and therefore useful for making policy predictions. Briefly explain.
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