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There are three individuals in a community that is deciding whether to unveil a statue of Elvis. Individual 1 would receive a net benefit of 25 if the statue were unveiled. Individual 2's netbenefit would also be positive and would be 20. Individual 3, however, would be very disturbedby this unveiling and would receive a negative net benefit of -50. If the community uses a 2"Clarke tax" to decide whether to undertake this project (note that the project has 0 cost), will the project be undertaken? What will be the Clarke tax paid by each person?
Assume that the Fed perceives inflation on the horizon and decides to pursue a contractionary monetary policy.
Assume the entire economy contains $5000 worth of one-dollar bills. If people fail to deposit any of the dollars, but instead hold all $5000 as currency, how large is the money supply?
Determine equation for aggregate planned expenditure in this economy.
Milk becomes more popular amd better feed increases milk production. how do these events influence demand and supply ? describe how the equilibrium price and equilibrium quanity changes.
If price of motor vehicles rises, what will happen to the demand of fuel oil? In which direction the demand curve for fuel oil will shift with a rise in price of motor vehicles?
Approx the marketplace demand curve and figure the existing Price elasticity of demand
In a leading publication your read this statement: "There are also increasing expenses for commodities, such as barley, aluminum, and glass, making it important to gain economics of scale." Sometimes industries get so big that they create shortages..
1. nbsp what is the distinction between net investment and gross investment? which is the total amount spent on
Using diagrams for both industry and a representative firm, illustrate competitive long run equilibrium. Assuming constant costs, employ these diagrams to demonstrate
Private entrepreneurs are likely to make better investment decisions than central planners because
Suppose a production function is given by f(K;L) = KL 2 What combination of labour and capital minimizes the cost of producing any given output?
Explain what effect an expansionary fiscal policy would have on the price level and real GDP starting from full employment equilibrium.
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