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Suppose GDP equals $10 trillion,consumption equals $6.5 trillion,the government spends $2 trillion and has a budget deficit of $300 billion. Find public saving, taxes, private saving,national saving, and investment.
Suppose the market for cigarettes is characterized by the following information: Qd=70-5P [Demand] Qs=3P-10 [Supply] Suppose the government imposes a sales tax of $2 per unit. i) Calculate the magnitude of the consumer surplus and producer surplus i..
A group of statistics students decided to conduct a survey at their university to find the average (mean) amount of time students spend studying per week. Based on a simple random sample, they surveyed 144 students.
an economy has a production given by y k0.25n0.75.a. what king of returns to scale does the production function
In 1994, the marginal cost of producing the Power Mac was about $1500 per unit, and a rough estimate of the monthly demand curve was: P= 4500-.15Q. At the time, what was Apple's optimal output and pricing policy
At the end of the first year's football season, the alumni demandedthat the coach be fired. The alumni agreed to buy hisremaining years on the contract by paying him the equivalentpresent sum, computed using a 12% interest rate.
suppose that a perfectly competitive firm faces a market price 10 per unit and at this price the upward-sloping portion
Suppose the number of points on an economics midterm (P) can be characterized by the following production function: P = 10H-4B where H is the number of hours spend studying and B is the number of beers in the week prior to the midterm.
A high-tech company in the US can have one of the popular items made offshore at half the price of making them in the US. However, about 90% of the items made offshore will be returned within the warranty period of 1 year for repairs. The followin..
the M&M company purchased a new punch press in 2005 at a cost of $265,000. M&M also paid $46,000 to have the punch press delivered and installed. The punch press has an estimated useful life of 12 years
Investors know for sure that the CEO of firm A will undertake an investment that will yild $100 million profit next year and then $2 million each year after that for 10 years. They also know for sure that the CEO of firm B will undertake an invest..
Firm ‘A' can make either 500 flashlights or 2000 batteries. Firm ‘B' can make either 650 flashlights or 1500 batteries. a) Who has comparative advantage in each good b) How would they both make themselves better off
Motorola and other backers sank more than $5 billion in the 1990s into the development of Iridium, satellite communications systems to connect wireless telephone users anywhere on earth. Although the number of subscriber's signing up for the servi..
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