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You are an economic advisor to the government of China in 2008. The country has a current account surplus and is facing gathering inflationary pressures. The current account surplus is large, in excess of 9% of GDP. Additionally, China currently provides a rather low level of government services to its people. China’s government would like to attract workers from the rural countryside into manufacturing employment and would prefer to soften any negative impact of their policy package on urban employment.
Question 1: Two firms compete in an undifferentiated Bertrand market. Suppose that the firms face a demand curve given by P = 80 - Q and both firms have constant marginal cost of 60.
In 1988 the US gross domestic product (GDP) increased to $4.90 trillion at year end, from the 1987 year end level of 4.54 trillion in actual escalated dollar values. In the same year, the consumer price index rose approximately 4%. What was the const..
By what percentage do the total assets decline by bank. By what percentage does the bank's capital decline. Illustrate which change is larger.
In an economy, the marginal propensity to consume is 0.8. The government balances the budget by adjusting the proportional tax level to the required government spending. An increase by 10 million in government required spending will lead to an increa..
Which of the following is likely to shift the demand curve for a normal good to the right? Which of these is likely to decrease the supply of leather jackets? Which of the following will indicate a shortage of a product in the market to suppliers?
Discounting future utility is a widely accepted assumption in classical models of inters- temporal choice. Behavioral economics adds to our understanding of time discounting with observations of inconsistent inter-temporal choice. In what sense are i..
Krill Electronics is looking for a new rental space for one of its manufacturing lines. The first rental space, on Park Street, requires a 2-year lease with the total cost of the lease ($88901) due at the time of signing. The rental space has annual ..
Consider the following Demand equation that represents Demand for goods to your company produces q=100-2p. Total cost of production is cq. Given to your company's objective is to maximize profit
Don Garlits is a landscaper. He is considering the purchase of a new commerical lawn mower, either the Atlas or the Zippy. Construct a choice table for interest rates from 0% to 100%.
Explain what you think causes the economy to go into a recession. Be sure to reference the theory/school of thought you are basing your response.
Jane’s sister-in-law, a stockbroker at Invest, Inc., is trying to get Jane to buy the stock of HealthWest, a regional HMO. The stock has a current market price of $25, its last dividend (D0) was $2.00, and the company’s earnings and dividends are exp..
Let the total welfare gain from the innovation be given by W = V + S. Compute expressions for W for both competition and monopoly.
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