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Indicate the relationship between national savings, domestic investment, current account balance and the net international investment position, using the framework of the national income accounts. Any relationship between this indicators?
What is the argument against attempting to balance the Federal Government budget rapidly at the present time via either deep cuts in Federal Government
Petra likes iPhone apps and epresso pods for her coffee machine. We denote the number of apps by X and pods by Y. Prices PX = 10. PY = 5. Her income in the period is 500. Her utility function is given by: (1) U(X,Y) = X^(0.4)Y^(0.6). What must her ne..
Explain how do you think that these individuals would rank the utility of these same expenses for themselves. What reasons may account for the similarities and differences in the ranking of such expenditures by your neighbor, your friend, and your..
What is yield management? Why does yield management often result in ticket price increases as one gets closer to the flight date even though the airline runs the risk of some seats going empty?
Calculate the deadweight loss (DWL) from the price ceiling. Find a price floor that will result in the same magnitude of DWL. [Note: P = price per unit; Qd = hundreds of units demanded; Qs = hundreds of units supplied]
Question 1: What creates a monopoly? Give examples.
Are you concerned that automation may increase unemployment or underemployment in the United States and around the world.
The inverse market demand for a good is given by P=34-Q. There are two firms that each sell the same homogeneous good in this market. The marginal cost of production is constant at 4. If these firms compete using the assumptions of the Bertrand model..
Consider the One-Period Model. Suppose that the government decides to increase G. Using a diagram, determine the equilibrium e ects of this shock on aggregate output, consumption, employment, and the real wage. Show that increasing G can potentially ..
The largest component of total spending is
A price taking firm chooses its inputs to maximize short-run profits. Its Cobb-Douglass production function has the following form: q(L, K) = L^(1/2) K ^(1/3). Set up the profit function in terms of labor only. Another price taking firm chooses its i..
Illustrate what would happen in the market, please Specify whether the policy would cost the Chinese government anything also if so, and explain how much.
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