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"Anyone who tells you that markets left to their own devices always lead to socially beneficial outcomes is talking utter nonsense." Do you agree with this statement? Defend your position.
how the economy moves to a new equilibrium. Focus on short-run as well as long-run equilibrium.
decides not to play by the rules of the game. Then illustrate what could the final equilibrium position be.
Illustrate what occurs to consumer also producer surplus when the sale of a good is taxed
Suppose life is discovered on Mars and that it turns out to be quite sophisticated. In fact, perfect competition prevails everywhere on the planet. Which of the following characteristics of Martian firms are we likely to observe.
This question uses the general monetary model, where L is no longer assumed constant.
Elucidate the multiplier concept as it applies in this case. What are the qualifications and limitations of the multiplier model.
Consider an equilibrium in which someone is using the good. Is social welfare maxi- mized at this number of users, or would it go up if there were more users, or would it go up if there were fewer users? .
If insurance premiums are going to be set below the actuarially fair level for a certain group, who will likely be targeted to make up the difference?
Several organizations and individuals – usually advocates of a balanced budget – maintain National Debt Clock. Is national debt a worry for the economy? Economists do not agree on the answer to this question. How did the 1974 Congressional Budget Act..
Analysis of Pricing: You manage MBA Deli which sells meals at a price of $6 each. The average number of meals sold per month is 7,000. MBA Deli would like to increase its sales and profits. The MBAs running the Deli, know that if price is lowered, th..
A. not say anything about the average annual rate of growth. B. concludes that its average annual rate of growth is about 5.5 percent. C. concludes that its average annual rate of growth is about 2 percent. D. concludes that its average annual rate o..
What will happen to real GDP and to the amount of labor employed, aggregate consumption, and aggregate savings? Compare these results to those predicted by the equilibrium business cycle model developed by Barro throughout the text.
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