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Give an example, in your opinion, of the economic and/or political forces that shape government decisions with respect to mandated minimum price supports for any product or service: (i.e. sugar prices, milk prices, and minimum wages). In your opinion, give an example of the economic implications for supply and demand and hence economic efficiency.
q1. total industry sales are 105million. the top four firms account for sales of 10 million 9million 8 million and 5
A "green" (environmentally friendly) office building costs as average of $3.50 per square foot each year to heat and cool. What is the total annual heating and cooling cost of an office building that has 10,000 square meters of space?
A cost of living index is introduced in the previous exercise. Suppose the consumer’s direct utility function is u(x1, x2) = √x1 + x2. Let base and final period prices be as in part (a), but now let base utility be u0. Show that the value of the inde..
Suppose that nominal GDP equals $15 trillion, the current budget deficit is $600 billion, and the net public debt/GDP ratio is 80 percent. Given that the government wishes to maintain the net public debt/GDP ratio at 80 percent, explain whether the g..
A fleet manager must choose between two trucks to purchase for a company's fleet. The company will keep either truck for 4 years. Truck A costs $29,000 and has a market value of $16,000 after 4 years. Truck B costs $33,000 and has a market value of $..
Suppose you win a lottery, and your after-tax gain is $40,000 per year until you retire. As a result, you decide to work part time at 32 hours per week in your old job instead of the usual 40 hours per week. Calculate the annual income effect on hour..
Assume that a nation’s marginal propensity to consume is 0.9, and that its potential GDP exceeds its actual real GDP by $5000. By how much should that nations government change taxes in order to completely close that GDP gap?
A significant difference between an administrative agency hearing and a court hearing is that... a binding decision can only be made by an agency. OR there is no right of trial by jury before an agency. OR a court hearing allows no public interventio..
An intermediary forms combining funds from huge numbers of savers. Each saver derives Happiness(H) from Income(I) according to the function: H= 31I -I^2 If there is competition between intermediaries, and if the cost of intermediation is $.50 per $10..
For the closed-economy, one-period model, suppose that and where determine consumption, employment, output, leisure, and the real wage in a competitive equilibrium, and explain your solutions.
Each year a sample of applications is taken to see whether the examination scores are at the same level as in previous years. Illustrate what is your conclusion based on this value.
q. how to calculate marginal revenue from demand?a.if the marginal propensity to save is 0.05 how large is the
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