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Q1. Are all expenditures of a government included in the calculation of GDP for that nation? Explain why or why not? If it is not then why government expenditures should be excluded from GDP? Are income taxes collected by the government from consumers included in GDP and, if so, how?
Q2. Explain the following statement: "Changes in disposable income lead to movements along the consumption function while changes in wealth lead to a shift of the consumption function." Use examples to illustrate your response.
The Investment demand curve is a useful tool to summarize an important and complex relationship in the economy.
Carefully explain the concept of the reaction function in duopoly analysis.
In country B the opportunity cost of 100 gallons of beer is 0.95 tons of cereal. Both countries can experience gains from trade if the exchange rate for a ton of cereal is 96 gallons of beer
Calculate the point elasticity of the firm's total sales revenue with respect to the amount of labor used when q = 2.
Now suppose the factory develops an innovation that allows it to produce a shirt for the equivalent of 1 loaf of bread. What is the new radius of the factory's market area.
The setup cost is $100 per order up to 99. For orders of less than a pallet, the setup cost is $200. The setup cost for pallet loads is $1000. The holding cost is 1% of the purchasing cost per item per week.
Demonstrate by example about production which exhibits constant returns to scale.
how will Kristine s consumption pattern and welfare be affected
If Professor P chooses x and s to maximize her utility subject to the constraint that Mr. A is willing to work.
Dependency theory characterizes countries as being either in the center or on the periphery
Brenda Johnson has used a preprinted form that she got from the internet to create her will.
Using your understanding of the financial system, the demand for money, banking and the money provide, interest and spending, the stock market, interest and investment.
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