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Consider the following statement from the book:
If you incur sunk costs, you are vulnerable to post-investment hold-up.
Explain what this means and provide a new example (one not in any of the class materials) to illustrate.
Should the United States pass a minimum wage that assures all workers earn a wage above the level of poverty.
The following set of statements contains common errors. Identify and explain each error. Demand increases, causing prices to rise. Higher prices cause demand to fall. Therefore prices fall back to their original levels. The supply of meat in Russia i..
N players are competing for a prize of 20 dollars. Who wins the prize is determined as follows. Each player submits a real number between 0 and 100 simultaneously. A player wins if his number is the closest to 2 of the average of the numbers of all N..
Give two examples of actions taken by a company, government, or organization whose effect is to prevent specific markets from reaching equilibrium. What evidence of excess supply or excess demand can you cite in these examples?
1. The decline in marginal productivity experienced when input usage increases, holding all other inputs constant, is known as:
Explain how discrimination reduces domestic output and income? Explain 3 of the examples relative to what they do for the beneficiaries of each program.
You are a macro policy maker for the CEA (Council of Economic Advisors). You have experience with the Congress (Fiscal Policy). What is the major economic problem for the United States? What Fiscal Policy would you consider appropriate? Why?
Mary has just stated that normally, as price rises, supply will increase. Her teacher grimaces. Why?
What is the role of the financial system? Name and describe two markets that are part of the financial system in the U.S. economy. Name and describe two financial intermediaries.
Write a formula which describes the marginal product of labour in the short run as a function of the amount of labour used.
What is the value of the total withdrawal (Savings + Taxes + Imports) when the economy is in equilibrium? Where I don't know the vaule for S (Savings).
You just started a new organic frozen hamburger company distributed throughout the southern United States. Soon, your market share grows to 70% of sales of all frozen hamburgers in the southern United States. Do you have any legal problems? What is t..
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