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What does the concept of "Ricardian equivalence" refer to? What are the conditions for the Ricardian equivalence to hold? Does it hold in practice?
Consists of performing application oriented exercises wherein specific economic principles learned in this course are put to practical use.
Elucidate how he should use information on the marginal catch at each lake to accomplish this goal. Illustrate what division on the 40 fishers would you recommend.
What are the major differences between capitalism, communism, and socialism? B. Discuss the three major economic indicators and how they are indicative of our current economic climate.
"If it were not for the law of diminishing returns, a firm's average cost and average variable cost would not increase in the short run." Do you agree? Explain.
What would be the effect of this investment on U.S. GDP? Would the effect on U.S. GNP be larger or smaller?
Demonstrate the effect of contractionary monetary policy in the AS/AD model
Compute Brazil and the United States with the state of the economy.
If the income tax base were broadened by eliminating these deductions, tax rates could be lowered, while raising the same amount of tax revenue. For each of these deductions, what would you expect the likely effect on taxpayer behavior to be
Analyze why the prices of gasoline rose so high over the summer. Was it because OPEC cut back production and the number of people driving was more? Illustrate this using a graph showing a decrease in supply coupled with an increase in demand, resulti..
Explain how does the money multiplier differ when currency holdings are zero, compared to when currency holdings are greater than zero.
Current machines have a 5 year life and were purchased 3 years ago at $1500000 - Invest $1 Million in upgrade costs to extend the life of the machines for another 5 years - Savings in labor resulting from upgrade, $300000 per year in 1st year doll..
The trend toward two-family income has led to policies allowing only one family member to work for a company, flexible work schedules, pregnancy benefits, and elder-care programs or else.
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