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In some economies relative supply may be unresponsive to changes in prices. For example, if factors of production were completely immobile between sectors, the production possibility frontier would be right-angled, and output of the two goods would not depend on their relative prices. Is it still true in this case that a rise in the terms of trade increases welfare? Analyze graphically.
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Output total variable total fixed Total cost ave.variable ave.fixed ave.total Marginal
Assume that gross national debt is equal to $3million and the federal government then runs a deficit of $300 billion. what is the new level of gross national debt.
the wages of players have raised enormously, in particular the salaries of high-quality pitchers.
It has been proposed that toll collection on the Massachusetts Turnpike, a key commuter route into Boston from the west, be discontinued. Proponents argue that tolls have long ago paid for the cost of building the road
If the government imposes a quantity tax on the consumption of a good, it means that the consumer has to pay for each unit of the good its price plus the tax.
Describe the market structure in which the selected good or service competes. Discuss the implications of the market structure on pricing.
Illustrate what did classical economists assume about the flexibility. What disagreements did Keynes have with classical economists.
How does the market adjust in the long run when firms are earning short-run economic profits? How does this affect the short-run supply curve?
Suppose you own a home remodelling company. You are currently earning short-run profits. The home remodelling industry is an increasing-cost industry. In the long run, what do you expect will happen to
Calculate the expected level of demand in a typical market. Indicate the range within which actual demand is expected to fall with 95% confidence.
When the price of a box of herbal tea bags rises from $0.99 to $1.21, the quantity offered for sale rises from 400,000 to 600,000. What is the price elasticity of supply? 2. When the price of wheat rises from $2.34 to $2.46, some farmers switch cr..
The Saudi government's long-awaited decision of imposing fees on undeveloped plots within cities, known as ‘white land
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