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In the early 1900's a US political group called the Socialist Party was founded. In 1912, the Socialist Party political platform called for, among other things:
"The extension of the public domain to include mines, quarries, oil wells, forests and water power.”
As it happened, the political party had only limited success, with its Presidential candidates getting just 6 percent of the electoral vote. Judging the party by this policy alone, do you think the Socialist Party would have managed to fulfill one of its other platforms, which was increasing the prosperity of America? Explain.
The monopolist’s marginal revenue is different from the one facing a firm in perfect competition because: (a) The price elasticity he faces is less than unity; (b) The price elasticity he faces is equal to unity; (c) The price elasticity he faces is ..
The market for DVDs has supply curve and demand curves given by P=2Qs and P=42-Qd, respectively. Calculate the equilibrium price and quantity of the DVD market. How many units will be traded at a price of $14? What participants (sellers or buyers) wi..
The number of taxicabs in Motorville and the taxicab fares are regulated. The fare currently charged is $5 a ride. Motorville taxicab drivers want to obtain government's permission.
Consider a committee of Ann, Bob, and Carol that is choosing between three alternatives, {x, y, z}. Player i’s preferences are represented by the ordering i . Suppose the three player’s preferences are: x A y A z. y B z B x. z C x C y. Is M complete ..
Suppose that an initial $10 billion increase in investment spending expands GDP by $10 billion in the first round of the multiplier process. If GDP and consumption both rise by $6 billion in the second round of the process, what is the MPC in this ec..
Illustrate what does this suggest about demand elasticity for drugs. Could it be that this experiment didn't actually measure elasticity very well and that elasticity is quite large.
Assume that if the labor market is unregulated, the equilibrium wage for workers who do not have high school education is $5.00 an hour. Assume that the government imposes a minimum wage of $6.00 an hour. Draw a supply-demand diagram that shows what ..
The difference between gross and net investment is referred to as:
Great post, you gave us a lot of useful information but how do you think that net exports will affect each of the items listed.
What is the federal funds rate? Why is it a vital component of macroeconomics? How does the Federal Reserve influence the federal funds rate? Graphically illustrate the impact of an FOMC open market operation that aims to reduce the federal funds rat..
Per the Kyoto Protocol, European countries have targeted a reduction of CO2 emissions. There are two main types of coal-fire plants in the EU: one type is designed to be able to be retrofitted with abatement equipment at a lower cost than the other t..
Suppose that the government decides to impose a tax on the producers of potato chips. How will the tax affect the potato chips prices and the quantities sold? Explain using demand and supply curves.
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