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PART 1
Redistribution of wealth: What if I were to say this to you? At the end of the term, I'm going to take away points from those students with A's and B's in the course and I will redistribute these points to those students who have C's, D's and F's. This will allow everyone to make a C in the course. What are the issues here? Is this fair? How does this scenario affect those who want to do well? How does it affect those willing to let others do the work for them? How does this "redistribution of wealth" question about your grades relate to income taxes and wealth? How does it relate to health insurance?
PART 2
The expression, "There's no such thing as a free lunch," implies that a. everyone has to pay for his own lunch. b. the person consuming a good must always pay for it. c. opportunity costs are incurred when resources are used to produce goods and s..
Explain the changes in the supply and demand creating a supply and demand curve based on the above information. In this graph, be sure to demonstrate how these changes affected the price and quantity levels of supply and demand. Based on this anal..
Suppose Japan agreed to a voluntary export restriction which reduced US imports of Japanese steel by 10 percent. What would be the likely short-run effects of that VER on the U.S..
You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia.
Suppose that society decided to reduce consumption and increase investment. How would this change affect economic growth? What groups would benefit from this change? What groups might be hurt? Justify your answer.
Chinese government switches from a strategy of investment-led growth to domestic market based growth on consumption expenditure. Do you agree with the above statement?
Explain, in your own words, how an increase in investment spending generates a multiplied effect on GDP. Explain how the accelerator and the multiplier concepts can represent an internal theory of business cycles.
Assume that the home country experiences technological growth in the X sector such that α increases to 12. Describe the impact on the free trade price, the pattern of trade and gains from trade.
Draw a graph with pages of economics on the horizontal axis and pages of political science on the vertical axis. On this graph, show the possibilities that are consistent with the constraints that Felicity has imposed on herself. (She is allowed t..
illustrate what do you think will occur to the price of marijuana if its purchase and sale are legalized. Be specific as to changes in the supply and demand curves.
Assume that the government of a nation rations the crude oil available to car owners each month which reduces the overall demand for petroleum. However, the nation continues to import oil from the world market.
Compare and contrast the effect of an increase in Foreign interest rates on Home's economy under fixed and floating exchange rate regimes. Use the IS-LM-FX model for each case (flexible and fixed exchange rates)2)Why might a country with a fixed ex..
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