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Choose a country and retrieve the latest data on its budget deficit/surplus and its current balance and explain the relationship. Do government budget deficits always lead to current account deficits? Identify two other possible sources for current account deficits. Are current account deficits necessarily a problem? Explain.
Suppose that a firm's production function is given by U=K.33 * L.67, where marginal product of capital is QK = .67(K-0.67 * L.67) and MPL is QL = .67(K.33 * L-.33).
Suppose vehicle is introduced into a central business district (CBD), doubling speed of travel for information exchange. Who financially benefits from innovation.
Why do sale of used goods do not add to income of a country in a particular year? If you think of income as the inflow in your bank account. All outflows are just expenditures. So I think of income as how much stuff can someone buy in a particulate y..
How companies and countries are becoming specialised in certain industries to compete and expand their businesses. Compare Australia with any other two countries
Most countries import substantial amounts of goods and services from other countries. Yet the theory says a nation can enjoy a high standard of living only if it can produce a large quantity of goods and services itself. Can you reconcile these two f..
Elucidate the factors that affected labor demand and labor supply in the chosen historical example.
In the _____, the perfectly competitive firm will seek out ___________.
Illustrate wow would the existence of such insurance affect the amount of clothing that people buy. How would you evaluate this change in behavior from the standpoint of economic efficiency.
What are your predictions for the US economy over the next two years? Use the macroeconomic models you have learned to present a reasoned answer. Explain your assumptions clearly.
In the argument for why perfect competition is allocatively efficient, the price that people are willing to pay represents the gains to society and the marginal cost to the firm represents the costs to society. Can you think of some social costs or i..
consider a homogeneous product industry with inverse market demand given by p 1100 - 2q there is currently one
q. mining is proposed for a wilderness area that provides two benefits recreation due to backpacking opportunities and
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