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Consider a seller who values a car at $9,500 and a buyer who values the same care at $10,000. What total surplus will result from a transaction between the two when the seller is faced with the follow sales tax rates: 0%, 2%, 4%, 6%, and 8%?
How is interest rate described? Why is there a lower present value of goods to be delivered in future? What are their respective interest rates? Illustrate the adjustments which you think will ensue.
An economy consists of two regions, the North and the South. The labor market is initially in an economy-wide equilibrium, with 1,000,000 people employed in the North at $25 per hour and 2,000,000 in the South at a wage of $15 per hour. Assuming t..
Real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as people sell bonds to obtain more money.
Recently, students in a marketing research class were interested in the driving behavior of students. Specifically, the marketing students were interested if exceeding the speed limit was related to social activity.
Assume that, over time, engineers develop new residential furnaces that can run on different tpes of fuels, e.g., natural gas, electricity, propane, and fuel oil, simply by flipping a switch on the furnace.
Explain how relevant to the real world do you believe this result is in the "contestable markets" view of the competitive process.
Is the market demand curve in this graph elastic or inelastic Can you calculate the elasticity value in the $3 to $5 price range using the midpoints formula for elasticity El = (Q1-Q2)/(Q1+Q2) divided by (P1-P2)/(P1+P2) For the purpose of this cal..
Provide two terms which you have heard in the mass media, political arena, or in any other venue.
Illustrate what is more important for them to monitor and target, inflation or interest rates.
Why will resources specialize according to their comparative advantages. Explain why will this specialization increase production.
Steady state in a calibration of the US economy in 2000. In this problem, suppose that rate of growth of the work force is n = 0.017 and there is no exogenous technological progress.
In the New Orleans metropolitan area in August 2005, the labor force was 634,512 and 35,222 people were unemployed. In September 2005 following Hurricane Katrina
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