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Suppose market demand and supply are given by Qd=100-2P and Qs=5+3p. If a price floor of $30 is set, what will be size of the resulting surplus?
Suppose both product and factor markets are competitive, why is the labour demand curve downward sloping? How can patent encourage invention? Why do we say that a monopoly is inefficient?
What is the difference(s), if any, between the unemployment rate and the natural rate of unemployment? Discuss.
A manager of a clothing firm is deciding whether to add another factory in addition to one already in production.
Explain the concept of countertrade. When does counter trade make sense? How does counter trade help solve the nonconvertability problem?
In 2010, and 2011, the government of Greece risked defaulting on its debt due to a severe budget crisis. Using bond market graphs as shown in class show the effect on the risk premium between U.S. Treasury debt and comparable maturity Greek debt. Ple..
Using the method of the Lagrange multiplier calculate the prices that you will charge to so that the profit is maximized and at the same time the stadium will be filled to capacity. Calculate the number of each type of tickets sold, as well as the co..
In the US, realized capital gains are taxed at 15% if they are held for more than a year. Suppose instead that we include realized capital gains (those held for more than a year and less than a year) in income instead so that they are added to an ind..
Explain how many units of housing would the government have to increase the provider of housing in order to get the market equilibrium rental cost.
Discuss the difference between absolute purchasing power parity and relative purchasing power parity.
Assume the inflation rate is 1.59 %, an income tax rate of 39 %, and straight - line depreciation. The MARR is 10%. What is the Internal Rate of Return (IRR) of "Alt. A" after taxes in actual 5?
The market where business sell goods and services to households and the government is called
Suppose that aggregate planned expenditure increases by $0.75 trillion for each $1 trillion increase in real GDP. If investment increases by $1 trillion, calculate the change in the quantity of real GDP demanded if the price level is constant at 105.
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