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Q1. In the case of the diamond, duplicative mineshafts were a waste if economic resources and the law makes them unprofitable. Instead of a diamond, what if a number of independent inventors are racing to be the first to obtain a valuable patent and the monopoly it grants. Does the patent system encourage duplicative efforts solely for the chance to be first? Why might you want the patent system to do this?
Q2. What is the meaning of economists when they say that "there is no free lunch"? Illustrate an example to which this statement applies.
Expecting that wool prices would remain high, wool producers raised a lot more sheep.
The Coca-Cola Company has 40% of the cola market. Determine the probability that a sample proportion
Suppose you read in the newspaper that all last week the Fed conducted purchases in open market, and that on Tuesday of last week it lowered the discount rate.
What would happen if suppliers charge less than the equilibrium price for your good or service.
Suppose that you are in a committee meeting of the United Nations
Numerous times in the lectures labelling the vertical axis as euro per $ and the initial supply and demand curves labelled with 12/07, Label this initial point as point A.
In your opinion, are the resources you devote to your education a form of consumption or a form of investment.
In which of the following cases should the United States produce more noodles than it wants for its own use and trade some of those noodles to Italy in exchange for wine.
Russian farmers, again, have a poor crop. Their government has announced that they will not ban exports. Discuss the impact on domestic and world prices, consumers and producers the effects of the Russian government's decision.
Homo sapiens production possibilities curve have shifted outward to the right much more rapidly than that of Neanderthals
Assume that the industry wants to expand and has to make some long-term capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.
Given your understanding of bond markets, what signals is the the bond market sending in response to the downgrade. Is this problematic.
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