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Which of the following are true of capital as a determinant of economic growth? Check all that apply.
Technological advances allow more output from the same amount of capital.
Increases in capital goods increase labor productivity.
Capital investment decreases per capita real GDP.
As consumption increases, capital formation also increases
When looking at inflation, you will find that this is measuring how much prices change. How does this influence the unemployment rate?
How does the emergence of interest-rate risk help explain financial? innovation?
Your company is considering the purchase of some CADD equipment. The initial cost of the equipment will be $152,000 and it will have a six year useful economic life. It is estimated that this equipment will save your company $53,000 per year, with a ..
Illustrate what would be the size of the resulting deadweight loss relative to the competitive outcome.
The table shows a bank’s balance sheet. The bank has no excess reserves and there is no currency drain. Suppose the bank sells $2 million of government securities to the central bank in an open market operation. As soon as the sale happens, the bank ..
The following shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost MC. Compare the demand conditions in each market; i.e. how do the two markets diff..
What do you understand by the term “ Critical Juncture?” Use your understanding of this term to discuss how Third World countries can use critical juncture experiences to create socio-economic and political change.
Assume good X is normal. Plot a graph to illustrate the income and substitution effects of an increase in PX, holding PY and I constant. Now suppose X is a Giffen good. Plot a graph to illustrate the income and substitution effects of an increase in ..
Explain and illustrate with diagrams the differences between diminishing marginal returns and decreasing economies of scale and cite causes and examples.
Illustrate wow would the existence of such insurance affect the amount of clothing that people buy. How would you evaluate this change in behavior from the standpoint of economic efficiency.
What steps can a government take to ensure that sustainable development is always considered in assessing which major economic projects or investment proposals to accept.
If an economy experiences a decrease in consumer spending, most economists believe:
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