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Questions: In your reply post, write a reflection on at least two other students' initial posts.
Economic exigency requires that consumers exploit all opportunities to increase their welfare. Does this argument legitimize tax evasion?
What impact does wealth accumulation have on GDP? Many were concerned with the very large increase in stock values in the late 1990s. Does this present a problem for the economy? Explain.
Suppose the economy is in a short-run equilibrium where Y
Given the following production function q=10.25L.25 w=$10 and r=$40 and K=5. Determine the short-run cost equation
The "10" and "9" terms in each demand function now become larger (e.g., they become "50" and "49," respectively).
Consider two possible designs for a product which are sold for $0.70 each. There are only two differences in the production of both designs: operation 1 and operation 2. The first product, A, requires 16 hours of operation 1 and 4.5 hours of opera..
Explain the difference between the two. Which is greater, fullcapacity GDP or potential GDP? Why?
In the "Bail Bonds" application, the price tends to fall as the number of firms rises above two, but prices are higher in New Haven (eight firms) and Bridgeport (ten firms) than in Norwalk (three firms). Give possible explanations for this pattern..
Government consumption in our model is simply a "waste", that is it does not affect anyone's utility or affect the production process. Use the Pareto Optimality framework. For each of them, solve the social planner's problem and show the equations..
Nominal GDP uses current prices as a measure of the value of goods and services produced, while real GDP uses prices of goods and services in a base year to measure value. Suppose an economy consists of three goods: pizza, sodas, and televisions.
the solar energy company is producing electricity from a solar source by using a large array of solar cells and selling
estimate the level of production which minimizes the cost and estimate the minimum cost.
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