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Q1. What are the terms of trade if the united states trades 1 can of soda for 5 units of clothing?
Explain why price regulation of a monopoly in a contestable market will not correct a market inefficiency.
Q2. Assume the generic production function Q=f(K,L) displays both decreasing returns to capital (K) and decreasing returns to labour (L), then:
Answer this production function will certainly display decreasing returns to scale.
This production function will certainly display constant returns to scale.
This production function will certainly display increasing returns to scale.
This production function may display increasing returns to scale.
Economic surplus could be increased at a higher price because firms would generate more revenue.
suppose there are two diners. What will they order (at a Nash equilibrium)? b)suppose there are four diners. What will they order (at a Nash equilibrium)?
Explicate the difference between balanced growth strategy and unbalanced growth strategy.
If there were only one seller, illustrate what would be the equilibrium price and quantity.
Is the student necessarily better or worse off than before from such a transfer implied by consultant A.
Show graphically how the effects of an increase in supply will differ according to the elasticities of supply and demand.
If economy is operating at full employment and exchange rate increases explain why Federal Reserve will be less inclined to raise interest rate.
Suppose both Smith and Jones utility functions of U(X,Y) = XY1/2. Smith is endowed with (X, Y) = (9,25) and Jones is endowed with (X, Y) = (25,9). Draw an Edgeworth box with indifference curves through this endowment.
Illustrate what happens to wheat farmers and the market for wheat when university agronomists discovers a new wheta hybrid that is more productive than existing varieties? show graphically.
In the northeast US and in eastern Canada, many citizens heat their homes with heating oil. Suppose you are one of these people, and you are expecting a cold winter, so you are considering your heating oil requirements for the season.
Illustrate what happens to money supply, interest rates and economy in general if Federal Reserve is a net seller of government bonds.
Evalute one opportunity for Kuddler Fine Foods that requires a business management decision.
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