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State whether each of the following statements are True or False. If the statement is false, please state why it is false.
a) An increase in Real GDP means that the Production Possibility Curve must move outward.
b) There is no cost to the macroeconomy of current consumption.
c) Increased Capacity Utilization means that the PPF is moving outward.
d) Gross Investment being greater than the amount of capital depreciated will help lead to Economic Growth, ceteris paribus.
e) Spending money on increases in human capital shifts the PPF outward, ceteris paribus.
The private marginal benefit for commodity X is given by 50-5X, where X is the number of units consumed. The private marginal cost of producing X is constant at $10. For each unit of X produced, an external benefit of $5 is imposed on members of soci..
Calculate various measures of productivity and explain they mean. Explain in words what the marginal productivity of labor and average productivity of labor measures and why this is important information for the owner of a business. Why does marginal..
Explain why might Industries in industries with high fixed costs be inclined to prevent strikes or end strikes quickly.
Consider an agricultural subsidy provided by the US government. Consider also that milk is one of the products subsidized. If there is NO trade with the rest of the world, the domestic price of milk in the US would be $2 per gallon and the equilibriu..
Two hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 500Qmill+ (Qmill)2 where Qmill indicates the mills annual production in thousands of tons. The marginal cost of ..
Administrative agencies: Select one: a. Rarely have both the power to issue regulations and the power to investigate when such regulations have been violated b. May make regulations that are advisory in nature, but cannot make regulations that have t..
Venezuela had considerable capital outflows after election of Hugo Chavez. If Venezuela had fixed exchange rates, determine what effect would these flows have had on Venezuela's overall balance and value of the Bolivar
Write an equation for predicting sales if Austen assumes that the percentage change in sales is twice as large as the percentage changes in income and advertising
What is the lowest price John can offer for this contract?
Suppose that two countries are exactly alike in every respect except that the citizens of country A have a higher depreciation rate than the citizens of country B. a) Which country will have the higher level of output per worker in the steady state?
What is free trade? What are its benefits? Identify and briefly discuss the three important implications of trade theory for business.
Air Express bought a used Boeing 757 plane 5 years ago for $35,000,000. At the time the plane was bought, it was estimated that it would have a service life of 10 years and its salvage value at the end of its service life would be $10,000,000. Air Ex..
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