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Suppose that the carnival and the circus have both come to town, and are both o?ering free admission. You have 6 free hours to kill. Draw the BUDGET LINE that shows your options for how you can spend the day.b) Now suppose that the carnival institutes an admission fee of $2 per hour and the circus institutes an admission fee of $4 per hour. You still have only 6 hours to kill, and you also have only $20 to spend (in other words $20 is your income) . Draw your NEW budget
Each firm has the usual U-shaped average-total-cost curve. The market is in long-run competitive equilibrium.
Suppose we refused to sell goods to any country that reduced or halted its exports to us. Who would benefit and who would lose from such retaliation. What could you suggest alternative ways to ensure import supplies.
Why might we imagine that this factor will continue to achieve the same effect in the future? iii. Indicate what factors might push in the opposite direction.
Elucidate proponets of free market systems argue that free enterprise leads to more efficient production and better responses to changing consumers preferences.
Suppose the government implements a policy that subsidizes business investment. Explain how will this affect the relationship between investment and the interest rate.
Compute the year-to-year growth rates of real GDP. Can you identify the recession that occurred during this period?
Within two weeks sales had fallen. Using your knowledge of game theory, illustrate what do you think disrupted McDonald's plans.
Find out statistics on the web from 2004 to present on following indicators of the macroeconomic conditions of the U.S. economy.
disposable personal income decreases by $50 billion and trade deficit is reduced by $15 billion. By how much has national income (Y) change.
Suppose that the demand for orange increases. Carefully explain how the rationing function of price will restore market equilibrium.
Overhead at the water cooler the demand also cost estimate which were provided at the meeting are very useful.
Compute the arc price elasticity of demand for the price of paperback books falling from $7.00 to $6.50, the quantity demanded rises from 100 to 150.
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