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In 2009, the Japanese beer industry was affected by two economicevents:
(1) Japan's government imposed on producers a tax on allbeer sold, and
(2) consumer income fell due to the continuingeconomic recession. How would each factor affect (i.e., shift)demand or supply? What impact do you predict on industry outputand price?
People end up tossing 12% of what they buy at the grocery store (Reader's Digest, March, 2009). Assume this is the true population proportion and that you plan to take a sample survey of 540 grocery shoppers to further investigate their behavior.
Suppose a bank's balance sheet looks as follows: Assets Liabilities Reserves $450 Deposits $5,000 And banks are required to hold equal to 10 percent of deposits. a. How many excess reserves does the bank hold
One year ago your bought a bond for $10,000. You received interest of $400 at the end of the year, as well as your $10,000 principal. If the inflation rate over the last year was five percent, calculate the real return.
Inflation affects creditors and debtors. Suppose the Canadian debtors borrowed $100 from the Canadian creditors on December 31, 1992 and promised to pay back $105 on December 31, 1993. This is equivalent to paying back a nominal interest rate of 5..
Sellers know whether their engine is in mint condition or needs repair, and buyers can distinguish between engines in mint condition and those needing repair. How many engines will be sold at the swap meet?
Many countries experiencing high and rising inflation, or even hyperinflation, will adopt a fixed exchange rate regime. Discuss the potential costs and benefits of a fixed exchange rate regime in this case. Comment on fiscal discipline, seigniorag..
Describe the used-car market in the United States. How many used cars get traded per year and at what average price? How does the market enable buyers to avoid lemons? What role, if any, do governments play in the usedcar market?\
Vander's sells bicycle in a small shop on main thoroughtfare, and the manager has computed some numbers based on past sales of bikes. she estimates the demand curve to be P=80-2Q. costs are given by C=200+20Q.what numbers would you use to back up y..
The Third National Bank has reserves of $20,000 and checkable depositts of $100,000. The reserve ration is 20%. Households deposit $5,000 in currency into the bank that is added to reserves
Create a supply curve for gasoline. Create a demand curve for gasoline. Calculate the average cost of gas in your local area. Calculate the standard deviation.
Suppose a wage tax that reduces the wage to W = $12 is imposed. By how much is the supplier's surplus reduced at the new equilibrium?
Using the following utility schedule, derive a demand curve for pizza assme income is $10, the price of each slice of pizza is $1, and the price of each glass of beer is $2. Then change the price of pizza to $2 per slice.
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