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Statements containing common errors
The following two sets of statements contain common errors. Identify and explain each.
A. Demand increases, causing prices to rise. Higher prices cause demand to fall. Therefore, prices fall back to their original levels.
B. The supply of meat in France increases, causing meat prices to fall. Lower prices always mean that French households spend more on meat.
Explain how will reduced smokers affect the GDP in the long and short run. What does increased revenue from cigarette taxes do to the deficit and budget.
During the period of airline regulation, the government set airline fares and regulated an air carrier's entry into and exit from particular markets.
Adopting the main features of the neoclassical supply of labour, elucidate how these 2 factors may be related.
Compute Foust's after-tax cost of new debt and common equity. Calculate the cost of equity.
Describe what do you mean by the price elasticity of supply.
Discuss the appropriate discretionary fiscal policy that the government should adopt, given the above situation.
There has been some speculation that tax deductions like as the one allowed for interest on home mortgages will be eliminated or altered.
A severe drought has make a shortage of tomatoes. Jim makes his own barbeque sauce. One of the main ingredients of his sauce is fresh tomatoes.
What is the firm's average variable cost as a function of its output level, y? What is the firm's average total cost as a function of its output level, y? What is the firm's profit maximizing level of output, and what is the resulting profit?
Explain if you are traveling to Europe in six months and you believe the Euro is going to appreciate against the American dollar, list two ways you could hedge this situation and protect yourself against the appreciation.
Explain how have these people changed monetary strategy, fiscal policy also laws that govern businesses since the collapse of the economy.
Illustrate percent have prices increased over the past thirty years. What average annual inflation rate would have resulted in this answer.
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