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In the Solow growth model of an economy with no population growth and no technological progress, the higher the steady capital-per-worker ratio, the higher the steady-state:
A) growth rate of total output.
B) level of total output.
C) growth rate of output per worker.
D) level of output per worker.
Some lenders charge an up-front fee on a loan, which is subtracted from what the borrower receives. This is typically described as "points" (where one point equals 1% of the loan amount). The federal government requires that this be accounted for in ..
How do Minimum Wage Laws affect the equilibrium in the Labor Market? For your selected product, if the government places a mandated price ABOVE the equilibrium price, how would this affect the market equilibrium?
It is important to remember that in a communist society difference between value of machine and value of labour-power replaced by it will always vary. Are you still thinking that Capital is blueprint for society.
Discuss the concepts of marginal product and marginal cost. Also discuss the importance of trends in these and other economic measures and how time-series analysis (trend analysis) can be used or misused to make important management decisions
You are the manager of a firm that receives revenues of $60,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -1, and the cross-price elasticity of demand between product Y and X is 1..
Suppose you are the economist of Didier Enterprises - a firm that manufactures ballistic missiles. Based on the estimates provided by a consultant, you know that the relevant demand and cost functions for the missiles are Q= 25 -.5P and MC = 2. Assum..
Assume an open, mixed economy. Assume the MPC is .7. Assume a stimulus package of $100 billion has been approved by Congress and the money has been spent. In order to pay for those expenditures, Congress also approved a $100 billion increase in indiv..
If the price falls to $2, how does quantity demanded change. How does Bert's consumer surplus change. Show these changes in your graph.
The law of diminishing marginal utility insures that
The Canada Education Savings Grant gives parents a grant of 20 cents for every dollar they save for their children’s education, up to a maximum of $2,000 in savings/$400 in grant. Some parents save more than others, and the average CESG per Canadian ..
A health reform plan recommends introducing a tax of $20 per day on hospital stays. How this new tax will affect hospital supply curve? Draw a diagram to illustrate your answer.
Why does hedging usually take place with a forward contract.
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