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-What is the circular-flow model?
-There are two different loops in the circular-flow model. What is the difference between the two loops?
-Does the circular-flow model describe reality exactly?
-Describe one way that you or your family interacts in the factor/resource market.
-Describe one way that you or your family interacts in the product/goods and services market.
-Name one type of interaction not represented by the circular-flow model.
What are some barriers a company might need to overcome when entering the global market? and What are some sources of financing for a new business? Limit your post to one source, and include some pros and cons.
Suppose Mary has an income of $80 to buy bags and belts. The price of a belt (good 1) is $10 and the price of a bag (good 2) is $20. Derive the intercept-slope equation of Mary’s budget line. Graph her budget line. As always, label the axes and ident..
Consider a consumer who spends all of her income on two goods. Prove that it is impossible for both goods to be inferior for this individual. (Suppose the assertion is not true. Write algebraically what this means, and derive a contradiction by using..
If you have been offered $137,000 for a job in Los Angeles and $117,000 for a similar job in Dallas, which job affords you the highest purchasing power of the bundle of goods in the price index.
Describe what a manufacturer of each product might do in the short run to increase production.
When price p is above a price taking firm’s SAC, the price taking firm profits may be negative but it will choose to continue producing as long as variable cost are covered. When price p is above a price taking firm’s SAVC, but below its SAC, the pri..
Illustrate what is the value of the money multiplier. What is the value of the nominal money supply. What are the nominal values of deposits, currency, and reserves.
An MBA student has proposed the following demand equation for good Y. What fraction of the total variation in the quantity demanded of good Y remains unexplained? What can the student do to increase the explanatory power of his demand equation? What ..
q1. if the marginal cost of planting and harvesting an acre is 7000 per acre for each of the five acres how many acres
What is the maximum amount of good Y that can be purchased if X and Y are the only two goods available, and individual income is $600, Px=15 Py=10, and they are already purchase 30 units of good X?
Budweiser, Miller and Coors, who together produce 80% of all beer consumed in the US, each spend well over $500 million a year on television advertising campaigns, promoting their beer brands. Do you think these firms would welcome congressional legi..
A firm making external hard drives has a cost function c(y) = 4y + 1000. Its demand function is y = 200 – 0.5p. a. Calculate the profit-maximizing price and quantity. b. The firm decides to enter the Mexican market. It determines that its demand func..
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