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A new tax on airline tickets has raised concerns the European airline traffic will fail. Show the effect on airline ticket prices and quantity demanded. Show the shift of supply and/or demand curves and explain why the curve(s) shifted.
What was the mercantilism way of thinking? How did they believe a nation became wealthy? what is this true? Why? Who is the known as the "founder of modern trade"? why? What did he see the Adam Smith failed to see? What is the difference between an a..
A manager is trying to decide whether to build a small medium or large facility. Demand can be low, average, or high, with the estimated probabilities being 0.25, 0.40, and 0.35, respectively. If a large facility is built and demand is high, earnings..
Show why this equilibrium point is unique, i.e. if we are not at point E, illustrate what would happen in this economy.
National savings is equal to the sum of private savings and public savings. To make our notation a bit easier, we will call national savings S, private savings V, and public savings U. So in other words, If private savings 'V' = 0.75S and total savin..
What is the average inflation rate. Explain how would inflation be different if real income growth were higher.
Assume two economies that have identical production possibilities frontiers. Show how they can still gain from trade if their populations have different tastes. (Graph 2 different sets of indifferent curves to represent the different tastes, then det..
Mighty-lite inc., a manufacturer of plastic tables for institutional use is considering a capital spending program involving annual expenditures of 100,000 for each of the next five years.
How has the recent increase in the price of a barrel of oil affected the prices of bicycles, cars and airplane fares?
If automobile emissions controls were not mandated by law, would people willingly buy also install them
Machine A has a service life of 4 years and Machine B has a service life of 3 years. If the required service period is 6 years and either machine can be repurchased in the future for the same price, what is your analysis period?. If the required serv..
What is the difference between the optimal level of total consumption minus the amount of total consumption generated by the market
Why is NOT a good idea for Federal Government to spend money, without paying for it in tax revenues and for the Federal Reserve to increase the money supply in the economy by creating and issuing more money?
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