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Q1. While we often associate informal financial arrangements with poorer countries where financial systems are less developed, informal arrangement often coexist with even the most developed financial systems. What advantages might there be to engaging in informal arrangements rather than utilizing the formal financial sector?
Q2. Because of the reduced use of main road, requirement in secondary market for gasoline falls - indeed, by 30,000 gallons per year. As we realize, there is stiff tax imposed on gasoline whereas one which existed prior to the new toll. Assuming that the marginal cost of producing gasoline is $1 per gallon, that these marginal costs are constant (i.e., the supply schedule is horizontal), that there is no outside effect from the consumption of gasoline, furthermore that the gasoline tax adds 30% to the supply value, Illustrate that there are any extra costs or benefits due to this shift? If it is so, explain how large are they?
Using this demand function, find the total revenue function. What is the shape of the total revenue function.
What is the deadweight loss in both markets if the price of a crate of fresh oranges is raised.
Explain how the MAS have successfully used exchange rate policy to achieve price stability for the last two decades.
With the decrease in demand for bridge and tunnel crossings, what is the optimal way to adjust tolls: raise tolls, lower tolls, or leave unchanged.
Explain the difference between Macroeconomics and Microeconomics. Also explain how economics is used as a social science and as a policy tool.
If the returns of the risky portfolio are normally distributed, what is the probability of returns being less than 29%.
What can you provide as advice to a manager concerning their choice on the quantity of labor and quantity of capital.
Suppose it had begun an expansionary policy early in 1981. What does the text's analysis of the inflation unemployment cycle suggest about how the macroeconomic history of the 1980s might have been changed.
Total hours worked, and average labor productivity all are procyclical. Which variable, output or total hours worked, increases by a larger percentage in expansions falls by a larger percentage in recessions.
When the bookstore announces a 20% price increase in new texts and a 10% increase in used texts for next year, Guojun's father offers him $80 extra.
Competition in the market is such that each of the firms independently produces a quantity of output.
A farmer has a production function f(L) where the input is capital (L). The cost of this loan is L(1+i). The farmer also has an outside option (loan from family member) which generates a profit of A.
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