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Automobile manufacturers produce a range of automobiles such as sports utility vehicles, luxury sedans, pickup trucks and compact cars. What fundamental econom- ic question are they addressing by making this range of products?
a. How to produce goods that consumers want?
Illustrate what is your prediction about the economic health of each economy over the next few years.
"The Smiths had assumed that large volume would bring profits through lowering unit costs." according to one company report, "The more paint and varnish we sold, the more money we lost." Draw an average cost curve showing the relationship between ..
The World Bank is at present advising newly industrialized countries on how to encourage growth and they have asked for your help.
Ben Bernanke has said that the Federal Reserve is going to continue its latest round of Quantitative Easing until unemployment falls to 6.5%. How fast will the economy have to grow to bring unemployment down to 6.5% by this time next year? Assum..
Assume there are only two automobile companies, Ford and Chevrolet. Ford believes that Chevrolet will match any value it sets, but Chevrolet too is interested in maximizing profit.
Create another diagram; once again start from an initial macroeconomic equilibrium. Explain both the SR and LR impact of a contractionary AS shock on Y. Use the appropriate diagrams and provide a brief real world example of this type of shock.
Suppose that new entry decreased your demand elasticity from -2 to -3 (made demand more elastic). By how much should you adjuct your price of $10?
Discuss the differences between unemployment and underemployment and give examples of each. Include in your contribution the differences between fiscal and monetary policy and how each would be used to reduce high levels of unemployment.
Suppose that 5 years after Hurricane Katrina, half the people whohad relocated to Baton Rouge move back to a rebuilt New Orleans.Use a demand and supply graph of the Baton Rouge housing market toshow the market effects of the return of people to New ..
Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms.
Economic indicators are economic statistics that tell us how well the economy is doing. The GDP, unemployment value, and inflation vale are the most common macroeconomic indicators.
The year is 2007, and the price elasticity of driving on Dulles Toll Road is 1.6. The owners of Dulles Toll Road raise the cost of a one way trip to $8.50.
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