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What are the roles of government in the market economy? Based the current economic conditions, to what extent should the government intervene in the market economy?
What are the justifications given in favor of more government involvement in the market economy? What are the reasons given in favor of less government involvement in the market economy?
Provide an example to discuss how special interests can succeed in perpetuating policies that are opposed by the majority of voters because the costs of organizing and motivating groups to take political action increase with group’s size.
The Teenager Company makes and sells skateboards at an average price of $70 each. During the past year, they sold 4,000 of these skateboards. The company believes that the price elasticity for this product is about -2.5. What would total annual reven..
Why might M1 and M2 grow at very different rates during a given year? If excessively rapid growth in the money supply is associated with all inflationary episodes, why do central banks ever allow the money supply to increase so rapidly?
Economies of scale and dis-economies of scale? What do these terms mean, when do they occur and how do they differ? Can you provide an example of economies and scale and dis-economies of scale.
What are the economic justifications of the size premium? In factor pricing models like the intertemportal capital asset pricing model (I-CAPM) or arbitrage pricing theory (APT), it is assumed that exposure to one of these factors represent exposure ..
Illustrate what is the present macroeconomic situation (e.g. worrying about inflation also/or recession) in the U.S.
A simplified economy is based on agriculture, manufacturing, and transportation. Each unit of agricultural output requires 0.3 units of its own output, 0.5 of manufacturing, and 0.2 unit of transportation output. There is demand for 95 units of agric..
You are the manager of a monopoly. The consumer’s inverse demand function for your firm’s product is P = 100 –20Q, and your cost function is C (Q) = $20Q. Part a Determine the optimal two part pricing strategy. Part b How much additional profit do yo..
What are three methods for estimating the cost of common stock from retained earnings? Which of these methods provides the most accurate and reliable estimate?
Over the past year price inflation has been 10% but the price of a used ford escort has fallen from $6000 to $5000. The real price of a ford escort has fallen by Elucidate how much.
Suppose Yon Sun Corporation's free cash flow during the just-ended year (t = 0) was $100 million, and FCF is expected to grow at a constant rate of 5% in the future. If the weighted average cost of capital is 15%, what is the firm's value of operatio..
Are you surprised by the variety and range of issues addressed by the World Bank - projects that meet basic needs such as fresh water and programs to provide Internet services? What are your thoughts on this variety?
“If the assumptions of the median voter model hold, then using majority voting to determine the amount of a public good purchased by a city will lead to either an efficient level of the public good being provided or an under-provision of the public g..
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