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What is an externality? Give an example of a positive externality and an example of a negative externality. What is the difference between private costs and social costs? From an economic perspective, is it sound policy to pursue a goal of zero pollution? Why or why not?
Explain how central bank manages a nation's monetary system. Outline stated direction of recent monetary policy in United States.
If the amount you owe on your house is greater than the price of the house, you have
Average fixed costs in the short run:
Is technology the critical driver of globalization? What is the nature of this argument conceived by: liberalism, mercantilism, and Marxism?
Explain which of the two classmates would you prefer as a partner. Would he also want you as a partner.
A firm’s total cost of producing 50 units of output is $1,000. At this output level, average fixed costs are equal to $10. It follows that the firm’s average variable costs are equal to? To maximize profits, a price-taking (i.e., competitive) firm sh..
Distinguish between the resource market and product market in the circular flow model. In what way are businesses and households both sellers and buyers in this model.
How might advertising make markets less competitive? How might it make markets more competitive? Give the arguments for and against brand names.
Suppose you bought a house and took out a mortgage for $50,000. The interest rate is 8%, and you must amortize the loan over 10 years with equal end-of-year payments. Create a graph that shows how the payments are divided between interest and princip..
Rank the market structures from LEAST efficient to MOST efficient.
Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists’ definition of the relevant market, the two firms proposing to merge enjoyed a combined market..
q1. the simple is-lm model predicts which cutting the governments budget deficit will reduce output in the short-run.
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