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Suppose Spain produces only cars and digital cameras. The resources that are used in the production of these two goods are specialized—that is, some resources are more suitable for producing cars than digital cameras, whereas others are more suitable for producing digital cameras than cars.
The shape of Spain’s production possibilities frontier (PPF) should reflect the fact that as Spain produces more digital cameras and fewer cars, the opportunity cost of producing each additional digital camera
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
Device A costs $100000 initially, whereas devise B costs $140000. Maintenenance will be $4500 for devise A and $2750 for devise B in the first year. These maintenance costs will increase 12% per year.
Suppose demand is still described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there is a price floor of 2.94, what would be the consumer surplus in the market ? Suppose demand is still described by P=5.10-0.80Q and supply is described..
Because increased government spending or tax cuts cause higher government deficits, they also contribute to a rise in total planned expenditures and aggregate demand. Previously, the government operated with a balanced budget; however, recently, ther..
The Australian national electricity transmission grid links eastern states including New South Wales, South Australia, and Victoria, but does not link Western Australia. How would price changes in Western Australia affect the other states?
To preserve capital in a declining stock market, a portfolio manager should:
Assume a perfectly competitive market structure. Complete the diagram to show the profit maximizing price and quantity. Label each (use Insert textbox). Is the firm earning economic profits or losses? If so, what will occur over the long-term?
What is the Federal Reserve (Fed) all about? Which Federal Reserve District Bank is closest to you? Who is the current Chairman of the Fed? Should the Fed remain independent from political authority or should the President and Congress have a say in ..
In Akerlof’s lemons problem, with symmetric information, suppose that 5 cars are available in equal quantity and with quality levels 0, 1, 2, 3, and 4. Suppose the sellers have a reservation price of $2,000 per unit of quality, and the buyers value c..
What factor(s) in demographic segment can have significant impact on U.S. restaurant industry? How does each of these factors shape the growth and changes of the industry? What are the future trend of each factor and the resulting changes of the indu..
What are the various ways in which the Federal Reserve influences the economy? What important tools do they use in influencing the commercial banking system?
Elucidate how much consumer surplus would be created by randomly assigning buyer to sellers. Which method gives the larger surplus.
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