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Q1. Suppose that two economies initially have the same level of real income and both suffer unanticipated declines in their sales of exports of $50 billion. Country "A" has higher tax rates and a higher level of government spending than economy "B". Otherwise, the two economies are similar in every respect. Which nations will suffer the maximum decline in services as a result of the decline in exports?
Q2. Use the two big questions of economics and the economic way of thinking to answer the following questions about the economic life of a homeless man.Does he face scarcity?Does he make choices?Can you understand his choices as being in his own best interest?Can either his own choices or the choices of others make him better off? If so, how?
A business cycle fact is that real wages are pro-cyclical. Using the classical labour market as we have all semester, show and explain how the classical economists explained this business cycle fact.
New manufacturing technologies are often viewed as labor saving in nature. Using a production possibilities frontier with manufactured capital goods on one axis and labor-intensive goods on the other axis.
Economists argue that the move from barter to money increased trade and production. How is this possible.
What percentage of the total variation in the number of calls is explained by the regression model.
Illustrate that the tax be acceptable in spite of the deadweight loss. What tax revenue will be generated.
As part of your answer converse whether or not one or more of the legs of the organizational stool was unbalanced.
The ending of company prepayments balance is expected to be the same as its beginning prepayments balance.
By what percentage do the total assets decline by bank. By what percentage does the bank's capital decline. Illustrate which change is larger.
Suppose now the price of a cell phone minute falls to $.50 per minute. Show how this will change the budget line.
If interest rates remain unchanged, what is the expected capital gains yield, stated as a percentage, over the next year for Bond A and for Bond B.
How great an open market purchase or sale of securities should the central bank undertake to restore the original interest rate.
Do these public goods conform to the law of demand. For which public supplies is demand price elastic.
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