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The radio manufacturing industry has been in decline for quite some time. Suppose the government is called on to save this industry with infusions of cash, low interest loans, or other special breaks. This might be touted as helping firms remain open, thereby saving jobs for the economy. Is there an opportunity cost to providing this support from government? What does it mean about jobs elsewhere in the economy?
One month ago, they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?
Suppose, as part of an active monetary policy, the Federal Reserve sells government and other securities from its existing portfolio holdings to the banking and financial sectors and the non-bank public. Suppose also that the banking sector is fully ..
How much would government get if it introduced a 15 percent income tax? Revenue $ d) How much would government get if it introduced a 15 percent sales tax on final output?
Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day she quits her job, sells $100,000 worth of bonds that had been earning 5 percent per year, and uses the funds to open a bookstore. At the end of the year, sh..
Clearly explain the implication of the crowding-out effect on the link between government deficits, interest rates and inflation?
What U.S. government policy has had a distortionary impact on corn production? Describe the far-reaching effects of this policy on the beef industry, illegal immigration and everyday consumer products.
Can you provide any examples of Illustrate what kind of equality could be made to offset these increased society costs
If, in addition, currency deposit ratio(c) is 0.05 and excess reserve ratio (e) is 0.15, what is money multiplier. Explain why money multiplier differs from simple deposit multiplier.
Consider an economy where, consumer’s utility function is given as U(C,L)=C-(1/2)L2 . where C is consumption and L is labor. The production technology is Y=(1.6)L-(1/2)L2 . The turnover cost per labor is (0.36)/(w/p). What happens to t as real wage i..
City Farm Insurance has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers. If City Farm has $5 million per day in collections and $3 million per day in disbursemen..
All of the following qualifies as capital in economics except
Explain why are changes in inventories included as part of investment spending
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