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Assume that production in the United States is valued at $10,000. National income is therefore $10,000. Of their income, workers pay $1,000 in taxes, save $500, spend $8,000 on consumer goods, and spend $500 on imports. Businesses spend $1,000 in new investment spending. And, foreigners spend $500 on exports. In order to avoid any problems of inflation or unemployment, the government should have a budget deficit or surplus of:
a. 0
b. $500 surplus
c. $500 deficit
d. $1,000 deficit
e. $2,000 deficit
The scenario is that I am going to open restaurants in China. One in Shanghai and one Beijing. These restaurants will serve healthy food such as salads, sandwiches, pizza, soup,
If the price of a good increases by 8% and the quantity demanded decreases by 12%, what is the price elasticity of demand?is it elastic, inelastic or unitary elastic?
What can you say about trends. Is the budget deficit getting larger or smaller. What about the national debt. Why are people so concerned about the size of the national debt
"Anjali and Sanu are married, and Sanu is the breadwinner. Anjali provides 4 non-market hours of service daily, and her productivity at home is $15. Sanu's earnings are $20/hour, and his productivity at home is $10/hour. Draw his daily budget constra..
an electric company must decide whether to install a scrubber to reduce sulfur dioxide emissions from its electric
economists generally agree that high budget deficits today will reduce the growth rate of the economy in the future.
How this changes in the minimum wage, could possibly affect the unemployment rate? What will be the macroeconomic effects, of minimum wage change in the economy?
Price discrimination is the practice of charging different customers or groups of customers different prices for the same product. Why does price discrimination occur?
Write down the equation of the budget line.
Explain how do they impact the domestic economies of nations. How do they affect individual business decisions.
A furniture manufacturer is considering moving its production to India. Its production function is: Q = 1.52L.6K.4. In Canada, w = $24 & r = $4. In India, w = $4 & r = $24.
What is the income elasticity? Interpret the elasticity in a mathematic and economic context -- what does this number tell you? Is the own price elasticity consistent with economic principles? Explain.
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