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Evaluate the following statements as True or False, then explain your answer:
a. if relatively more drug users are addicts rather than casual users, prohibition will be more effective. Is this statement true or false? Explain.
b. the interest income that could have been earned on money invested in a college education is not relevant to the decision to attend college. is this statement true or false? Explain.
c. increases in aggregate demand will always result in an increase in employment. is this statement true or false? Explain.
d. expansionary fiscal and monetary policies would not be very effective in dealing with the unemployment problems experienced by most European nations. is this statement true or false? Explain.
e. the prospect of Social Security benefits has induced workers to retire at earlier ages. Is this true or false? Explain.
What are the factors of production? Please list them and share your thoughts and insight on what they entail and how they relate to the opportunity costs of your decisions?
How many units will be traded at a cost of $35? At a price of $14. Which participants will be dissatisfied at these prices.
Explain by how much did real GDP increase between 2002 and 2003. Velocity in the country of Shem is always stable.
Suppose that individuals in this economy invest 30% (use .30 in the graph) of what they produce; the labor force in this economy grows at 5% (use .05) per year; and 10% (use .1) of the capital stock wears out each year. Suppose that the capital labor..
Evaluate whether each of the following statements is true or false. Explain your answer and provide supporting rationale. The short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase. The long-run a..
Show, using an AS-AD graph, how government can use accommodating monetary or fiscal policy to return output and unemployment to their long-run values.
An empirical observation that led to the development of the supplier-induced demand hypothesis is that when the supply of physicians in a market increases, the price also increases, which defies the basic rules of supply of demand. Proposed policies ..
Illustrate what is the relation between marginal benefit and marginal cost at this level of the control variable.
Suppose that you buy, and one year later sell, a foreign (British) bond under the following circumstances
Unemployment generated by the existence of labor unions is structural unemployment and so contributes to the natural rate of unemployment.
What is the average inflation rate. Explain how would inflation be different if real income growth were higher.
Suppose a foreign investor who holds tax-exempt Eurobonds paying 9% is considering investing in an equivalent-risk domestic bond in a country with a 28% withholding tax on interest paid to foreigners. If 9% after-tax is the investor's required return..
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