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What is commodity money and fiat money, and which kind we use?
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Suppose you have a perfectly elastic supply curve represented by P=5, and a demand curve represented by the equation P = 20 - Q . Draw a supply-and-demand diagram representing this situation, and find the equilibrium price and quantity.
We measure economic growth by the percentage change in real GDP. In general terms outline the course of the U.S. output growth rate in recent decades, both in terms of its trend and its changes around trend. Pay particular attention to the stability ..
What is the theoretical justification for a so-called Laffer curve? Based on the empirical evidence described in the text, should the U.S. raise or lower its tax rates in order to increase tax revenues? Explain.
explain what happens to observed prices in posted offer and double auction markets as the number of sellers drops (b) explain what happens in these two markets as the number of sellers drops to only one seller (c) explain why part (b) illustrates the..
What is market power? Define market power, name a few sources of market power, and explain why market power is always a source of market inefficiency.
Consider an income guarantee program with an income guarantee of $5,000 and a benefit reduction rate of 40%. A person can work up to 2,000 hours per year at $10 per hour. Draw the person’s budget constraint with the income guarantee. Suppose that the..
q. a facility for a production plant can be purchased for 155000 with a down payment of 25000. consider the following
firms raise capital from investors by issuing shares in the primary markets. does this imply that corporate financial
You should present your conclusions and suggestions to Big Daddy in the form of a memo. Remember when drafting the memo that Big Daddy is a busy business executive. Give him your suggestions, and explain your reasoning, succinctly and in as non-techn..
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?
Beloit Co. is a manufacturer of mini-doughnut machine markers. Early in 2003 a customer asked Beloit to quote a price for a custom-designed doughnut machine to be delivered by he end of 2003. Once purchased, the customer intends to pace the machine i..
A machine makes drill bits. When the machine is operating correctly, the variance of the diameter of drill bits is no more than .04 inches. In a random sample of 81 drill bits, the sample variance was .07. Test the hypothesis at the 1% level that the..
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