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Consider the argument that government spending and borrowing harms long-run economic growth.
A. Is this most likely to happen if the private spending crowded out is consumption spending or investment spending? Briefly explain.
B. In terms of the impact on long-run economic growth, would it matter what the additional spending/borrowing funded? In other words, would it have a different impact on economic growth if the spending went to highways, weapons systems or parks?
Describe why alternative efficient allocations may have different total levels, and different distributions, of wealth.
Suppose that there are three firms, who produce homogeneous products, and whom have the same marginal cost which is constant over output. These firms play an infinitely repeated Bertrand pricing game. Each period they simultaneously set prices.
In our treatment of the Ricardian model We have focused on the case of trade involving only two nations. Assume that there are many nations capable of producing two goods
Describe how market structure affects market performance and conduct. Recognize three types of government regulation that aid to enhance market performance
The owner-manager of Good Guys Enterprises obtains utility from income (profit) and from having the firm behave in a socially conscious manner, such as making charitable contributions or civic expenditures. Can you set up the problem and derive th..
The IT industry is full of patents. There are some companies, referred to as patent trolls, whom purchase these patents in hopes of making money by enforcing patents against alleged infringers. Determine the impact of government regulation
Discuss the factors that affect the price elasticity of demand as they apply tolamb and make a suggestion based on your appraisal as to the likely priceelasticity coefficient.
What is the first order condition for profit maximization for firm 1? compute the optimum quantity x1 for firm 1 as function of quantities x2 and x3.
Suppose that the government chooses conscription. That is, the government forces the representative consumer to supply a units of time to the government as military service C with a lump-sum tax. Use a diagram to show the effects of conscription o..
Due to the lack of profits, many growers have stopped production and the output of coffee beans has fallen from 400 tons per year to 250 tons per year.
The local utility company applies a "declining block" rate structure for its industrial consumers, that lower unit price is charged for higher quantity blocks of electricity and water usage. Is the company practicing any type of price discriminati..
You inherit a package of call options on a stock currently selling for fifty three dollar. In a year, the stock could sell for anywhere between $40 and $80.
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