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Suppose the demand for French bread rises. Explain what happens to producer surplus in the market for French bread. Explain what happens to producer surplus in the market for flour. Illustrate your answers with diagrams.
You are in charge of managing a small group of rental car offices. Some customers are Costco and/or AAA members (“cardholders”), and these customers have been getting a discount on the weekly rate for the economy cars that you rent. For the time bein..
Assuming a basic four sector spending model ( Y = C+I+G+X-M) does an increase in exports have the effect of increasing, decreasing, or not changing the size of autonomous spending multipliers (that is, the investment or government spending multiplier..
Original owners must sell their used cars. Original owners know what their cars are worth, but buyers can't determine a cars quality until they buy it.
If the required reserve ratio is 8 percent, a new deposit of $10,000 in currency to the banking system, assuming banks all remain "loaned up", will result in an increase in money supply of $__________________. Show how you have found your answer.
In which market will a company arrange to receive currency for a transaction at a future date? The forward market, the currency futures market, the arbitrage market, the forward spot market.
The City of Washington is considering adding new buses for its current mass-transit system that links from the Tacoma International Airport to clustering city destinations on non-stop basis. The total investment package is worth $10 million and expec..
With respect to factors of production, which of the following statements is not true?
George purchased a $10,000 bond that pays a nominal interest rate of 8 percent per year. George's marginal income tax rate is 28 percent. Over the last year, inflation was 3 percent. Find George's before-tax real interest rate and his after-tax real ..
This is where the story that Country (A) broke all the financial rules begins to fall apart. In a lot of ways, the IMF's intervention was typical. Country (A) sharply reduced government spending and increased interest rates all the way up to 18 perce..
What is the rationale for government to regulate the activities to businesses? How is our economic and social existence shaped by government regulations?
Calculate the approximate total tax revenue if all of the coal burned in the United States was burned under a $100/ton carbon dioxide tax. Do this (a) for one year at the present rate and (b) for the total U.S proved reserves. Assume 100% carbon for ..
The root cause of most mass starvation is a lack of food production. Most mass starvation have been intentional. Mass starvation is less likely in democracies. Greater political competition is associated with higher levels of food distribution.
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