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State clearly and precisely what is meant by market failure? List the factors that would lead to market failures, and explain each one of them. State the second theorem of welfare economics, and explain the significance of the role of government in the economy even if the Pareto optimum has been achieved in a competitive market economy.
A diabetic's demand for insulin is almost completely price inelastic. Draw a set of indifference curves and an appropriate budget constraint that would generate such a demand curve.
Explain and illustrate graphically the effect of the following on the monetary base and the level of reserves. Central bank purchases $30 million of government securities for Chase Bank. The Fed purchases from the public $3 million of government bond..
If the US economy is operating near full employment and the exchange rate increases (the dollar appreciates), explain why the Federal Reserve will be less inclined to raise interest rates
Do you think the net effects of trade blocs are good or bad for world trade? Why? How do the efforts of the WTO relate to these trade blocs.
A used car can be kept for two more years and then sold for an estimated $3000, or it could be sold now for $7500. The average annual maintenance cost over the past 7 years has been $500 per year. However, if the car is kept for two more years this c..
Closed, Union, Open and Agency shops, National Labor Relations Act or Wagner Act of 1935, Taft-Hartley of 1947. Collective Bargaining, union members make 10 to 15 more than non-union workers. Why?
An asset has a first cost of $200,000, annual O&M costs of $5,000, a salvage value of $50,000 at the end of 10 years, and at the end of 5 years will need a major overhaul costing $20,000. At an interest rate of 4%, what is the present worth and the f..
Discuss how you would explain what this class was about to a friend of yours pondering taking the same class.
Examine KANO Analysis of customer requirements also come up with some questions (also answers) concerning it.
Suppose there are three ticket prices at a concert: $55, $65, and $90. You decide to try your luck at the last minute and prefer the cheapest ticket possible. There is a 50% chance that the $55 ticket is available, a 30% chance that $65 is the cheape..
q. in 1999 mercedes- benz usa assumes a new pricing policy which it called nfp negotiation- free process that sought to
Suppose total output (real GDP) is $10,000 and worker-hours are 20,000. We can conclude that: If the nominal interest rate is 18 percent and the real interest rate is 6 percent, the inflation rate is:
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