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Directions: Answer the following adequately
1. What happens if we do not follow market prices and the government sets up its own price?
2. Why are some goods sold in small amounts (expensive foods) that consuming it will not give consumers the satisfaction they deserve?
3. Why do some businesses become capital intensive?
4. What do our oil companies mean when they claim to use "competitive prices"?
5. What happens if the government spends a little and uses its tax collection to pay its obligations?
6. What is the role of agrarian reform in the Philippine economy?
Suppose Dana quits her job as a lawyer, where she made $6500 per month, to open an ice cream shop. Suppose that Dana has revenue of $20,000 per month. Her monthly explicit costs are shown below. Is Dana earning an accounting profit? Is she earning an..
There are two major schools of thought in macroeconomics with differences in the short run analysis - the Classical and Keynesian Models.
Write down John's lifetime budget constraint. Explain how much does he save for the retirement when he is at work.
What does the Federal Reserve do to stimulate the economy? What does the Federal Reserve do to contract the economy? What motivates policymakers to stimulate the economy or contract the economy?
A public good, such as a community's emergency warning sirens
The price elasticity for butter is fairly high (in absolute value). Which of the following is among the reasons why its demand is so elastic?
What is opportunity cost of producing a barrel of oil in Saudi Arabia. In United States. Which country has comparative advantage in producing oil.
Suppose you and your roommate have started a bagel delivery service on campus. List some of your fixed costs and describe why they are fixed. List out some of your variable costs and describe why they are variable.
The economic analysis of legal concepts, such as property law, contracts, torts, the legal process, crime, and punishment. The focus of much of the material is using the scientific theory of economics to predict the effect of various policies on ..
Elucidate which following is true in market of a monopoly
The manager is concerned that, despite the fact that the firm's competitors are comparatively small, collectively their annual revenue growth has exceeded 50 percent over each of the last five years.
Consider a linear supply curve that passes through the origin: Qs = bP. Prove that PES =1 at every point along this relationship. Hint: PES = (P/Q)(1/slope).
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