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How do differences between world prices and domestic prices prompt exports and imports? Give an example.
What are the goals and tools of monetary policy? Give an example.
Suppose a permit case like in textbook with m_1 > m_2 and the cost of reducing emissions equal to m_1/2 e^2. Suppose also that the firms must borrow to pay for permits at firm specific interest rates r_1 and r_2. Give a condition for the benefits to ..
The rm must pay a xed cost of $80 if it produces any positive amount, but does not have to pay this cost if it produces no output. Illustrate the smallest integer price that would make a rm willing to produce a positive amount.
Which economy is better off, country A, in which output is growing 6 percent per year with population growth of 4 percent per year, or country B, in which output is growing 4 percent per year with population growth of 1 percent per year?
Redstone Clayworks, Inc. is located in Sedona, Arizona and manufactures clay fire pits for patios. They are one of about two dozen firms around the world that manufacture and sell clay fire pits for retailers such as Home Depot, Lowe’s, Front Gate, a..
The advertising department for a retail store wants to estimate the mean amount spent per visit to the store by customers. Use the data collected below to determine whether we can conclude that the mean amount spent is equal to $60 at the .01 signifi..
There are 20 identical firms that provide car wash services in the town of Dartmouth. Inverse demand for this service is P = 100 – Q. Unit cost is constant and equal to $20. Firms in this industry compete in quantities of cars washed. Suppose the sma..
Accounting profit is: A variable cost is one that changes: In the short run, which of the following is likely to be a variable cost to a physician? Production of Hollywood movies is an increasing cost industry. Which of the following contributes the ..
How we justify assumption that individual demand curves have a negative slope. If y do not, then we may not be able to add them to get market demand.
The constant or intercept term in a statistical demand study represents the quantity demanded when all independent variables are equal to:
Who wins, who loses under a wheat tax versus a subsidy? How does the deadweight loss of the tax compare to the deadweight loss of a price support subsidy? Why, in social welfare terms, is a tax a better than a subsidy?
Suppose a candidate who runs on a platform of soak the rich wins the 2012 presidential election. After being elected, he or she persuades Congress to raise the top marginal tax rate on the federal personal income tax to 65%.
Which of the following actions by a nation's central bank would be most effective in reducing inflation?
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