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Suppose the congress decides to reduce unemployment compensation. Use our model of the labor market to predict what would happen to real wages, the natural rate of income.
The licorice industry is competitive. The current market price of a string of licorice is $0.40. At this price, a firm decides to produce 2 million strings of licorice this month.
Discuss the benefits for Bolivia of forming a strategic alliance with a private company to extract lithium. What are the drawbacks of this strategy? What should Bolivia look for in a partner?
The Cobb-Douglas production function is given by: Y = AK^(α)L^(1−α) where 0
A manufacturing company invests $100,000 in a new piece of equipment. Operating expenses for this new piece of equipment is estimated to be $4,000 starting EOY1 and increasing by $200 per year at the EOY2 and for the next 9 additional years. Draw a c..
This diversity of experience reinforces the view that economic policies and policy advice must be country specific if they are to be effective". Critically evaluate the position espoused in the above statement.
When wages increase, will the typical person work more or less? Explain your answer using microeconomic theory. (Note: The substitution and income effects for leisure demand are an important part of this topic).
The financial crisis of 2007–2008 generated much introspection about what went wrong and how to prevent anything like it from happening again. What could have been done differently and why?
Assume that in the short-run, wages and prices are flexible enough to adjust, that at full employment, firms and workers are able to negotiate lower nominal wages, which will shift the short run aggregate supply rightward. Also, keep in mind that the..
q1. assume which the central bank implements a monetary expansion which is fully anticipated by financial markets. this
Laura sells mushrooms and strawberries to tourists. If Laura spends the morning collecting only mushrooms, she picks 8 pints; if she spends the morning picking strawberries, she collects 6 pints. If she picks some of each, however, she can harvest mo..
Assume that the University Regents implement a policy that requires the box office to sell all tickets at a price of $35 regardless of who is playing. Think about all of this information, Then: Draw appropriate supply and demand curves to represent t..
indicate for each price whether the firm will produce, shut down, or be indifferent between the two in the short run, and whether it will make a profit, suffer a loss, or break even.
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