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Why is a balanced budget (for the government) or balanced trade neither necessary nor sufficient for equilibrium in a market economy? Explain.
If the demand elasticity for a product is -2, and a profit-maximizing company sells the product for $10, determine its marginal cost?
An alternate means of depicting the individual labor supply decision is via a graph with hours of market work (Hw) on the horizontal axis and the market wage rate (W) as well as the shadow or home wage (W*) on the vertical axis.
Illustrate what is the cost of the same basket of goods and services in 2005.
Elucidate the difference among the statement "the money supply is fixed" and the statement "the money supply is exogenous".
The velocity of money is equal to PQ/M. Hence, V = PQ/M. This is related to the equation of exchange and is just a rearrangement of the equation MV = PQ. a. true b. false
Show the basis for our construction of the output DEMAND function. As an intermediate step explain the construction of the consumption function (as a function of output) and how this becomes a key component of the output supply function.
Calculate a perpetual equivalent annual cost (year 1 through infinity) of $5 million in year 0, $2 million in year 10 and $100,000 in year 11 through infinity. Use an interest rate of 10% per year.
The Wall Street Journal reports that the rate on three-year Treasury securities is 5.25 percent and the rate on four-year Treasury securities is 5.50 percent. The one-year interest rate expected in three years
OPEC oil cartel becomes subject to this tension or conflict such that the cartel gives way to a more competitive oil market resulting in a dramatic decrease in the world oil price.
Explain how does the democratic political system lead politicians to emphasize points outside the production possibility curve.
some friends of yours have just had a child. thinking ahead and realizing the power of compound interest they are
As best we can tell, responded the central bank governor, the center of the 2 percent inflation target, namely 1 percent, appears to correspond to genuine price stability once the various sources of bias in the CPI are allowed for." An example of ..
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