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1. Congress passes a law which requires car manufacturers to reduce emissions during the manufacturing process.
(a) Which of the supply shifter variables (SPENT) is affected?
(b) Will supply increase or decrease as a result of the change?
(c) Which way does the supply curve shift (right or left)?
(d) Assuming demand remains the same, what happens to equilibrium price and quantity after the shift? Will they increase or decrease?
2. What is meant by a "binding price floor?" Give an example and explain how a binding price floor affects the market equilibrium
If the central bank (the Federal Reserve) keeps printing money and lowering the interest rates to get consumers buy and businesses to borrow money, then the economy will improve. Do you agree with the statement?
Recycling paper is often praised because it allegedly (ostensibly) helps to preserve forests. Under which assumptions is this a sound economic argument? Are these assumptions realistic? What happens if they are abandoned?
Dr. Doug is considering two business opportunities. Both require an initial investment of $200,000. The first will return $50,000 at the end of each of the next six years, while the second will return $35,000 at the end of each of the next 10 years. ..
How MUCH of the first months payment will go toward PRINCIPAL reduction of the mortgage?
Dave Macy decides to sell his gold jewelry and deposits the cash at his local bank. How would this be recorded on the bank’s balance sheet?
The scores of students on the ACT college entrance examination in a recent year had a normal distribution with a mean of 18.6 and a standard deviation of 5.9. A simple random sample of 60 students who took the the exam is selected for study. What are..
Why is the policy necessary? The welfare of consumers, producers, and society (the winners and losers) before and after the policy.
What is the standard deviation for the class? b. What percentile did you score in?
Find the new equilibrium size of income and calculate the multiplier of the balanced budget - the £10,000 of public spending
Two manufacturers supply MRI systems for medical imaging. St. Jude’s Hospital wishes to replace its current MRI equipment that was purchased 8 years ago with the newer technology and clarity of a state of - the - art system. Which system should be se..
The rm must pay a xed cost of $80 if it produces any positive amount, but does not have to pay this cost if it produces no output. Illustrate the smallest integer price that would make a rm willing to produce a positive amount.
Outline how neoclassical economists derive the law of demand and then criticize neo- classical consumer/demand theory from a heterodox perspective
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