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Suppose that the supply of fossil fuels like coal and petroleum will become more and more scarce in the next fifty years. With a growing global demand for energy and the looming threat of rising global temperatures, it would seem to be a recipe for a dramatic decrease in the growth rate of economic activity. Why do many economists believe that economies can continue to grow even in the face of resource scarcity? Some economists argue that the official unemployment rate understates the true level of unemployment. Summarize these arguments.
In Keynes’s analysis of the speculative demand for money, what will happen to money demand if people suddenly decide that the normal level of the interest rate has declined? Why?
Maker an article or current event article which relates to government regulations or antitrust activities.
Assume a monopolist faces the market demand function P=a-bQ. Its marginal cost is given by MC = c+ eQ. Suppose that a > c and 2b + e > O.
You need $50,000 cash throughout year. Your time is worth $100 per hour and it takes you a half-hour to get cash from your ATM. Your bank is paying 5% per annum passbook savings.
Retirement of baby boomers threatens the Social Security system because number of retirees will be relatively large compared to number of workers remaining by 2020
On average, how much do you expect your revenue to be? Your accounting profit? Your economic profit? Will you quit your job and try your hand at being an entrepreneur?
The Toys-R-Danger-Us Toy Company can produce 500 water pistols for a total cost of $1,400. The company can also produce 1,000 water pistols for a total cost of $3,000, but it would have costs of $200 even if it produced no water pistols.
Recent tax reforms make college tuition partially tax deductible for certain families. This should motivate more people to attend college. How will this higher demand for a college education affect tuition prices? how will it affect the cost of the t..
The economy is doing well in 2000. Revenue was rising and the stock market hit new record highs. As a result, the price of housing rose.
Explain how bank losses from mortgage backed securities could lead to an investment bank becoming insolvent and going bankrupt. Your explanation should use a somewhat realistic T-Account
The baker uses the flour to make bread & sells the bread to households for RS. 6.00. The households eat the bread. What is the value added in each stages of production?
Suppose that the average prices of refrigerators have fallen over the past few years, yet the refrigerator companies have offered more and more of them for sale. Does this mean that the supply curve for refrigerators is downward sloping?
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