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An early goldsmith banker earned a profit (sometimes a large profit) simply by writing notes to certify that a person had deposited a certain amoumt of gold in his vault. By writing more notes than the amount of gold held, the goldsmith could lend the notes and charge interest on them. Did the goldsmith bankers make money out of thin air in a form of legal theft? Should the goldsmith bankers have been regulated to ensure that the amount of gold in their vaults equaled the value of the notes they created? What were the main benefits fromt he activities of the goldsmith bankers?
Suppose that real GDP per hour of work grew by 6 percent last year and the capital per hour of work grew 9 percent. Using the one third rule, by how much did the increase in capital per hour of work increase real GDP per hour of work?
Discuss some obstacles to successful international economic rule coordination in terms of current global economic and political policies and their effect on business conclusion?
A major car manufacturer wants to test a new engine to determine whether it meets new air pollution standards. The mean emission of all engine of this type must be less than 20 parts per million of carbon. Ten engines are manufactured for testing ..
Compute the value of the price index for GDP for 2006 using 2005 as base year. By what percent did prices rise?
As a manager of chain of movie theatres which are monopolies in their respective markets-Devise a pricing strategy to maximize your firm's profits.
Consider two economies, one with a relatively flat aggregate supply curve and one with a relatively steep aggregate supply curve. In which economy will the governement have more succes in raising GDP by increasing its spending? What factors do you..
While many thought that 2008 fiscal stimulus plan explained in the feature on pg. 174 was a good idea, some did not. Some even think that Congress did not go far enough.
Describe a long-term contract shoeing all necessary steps that the current supplier can offer the buyer that will be attractive to the buyer and will also strengthen the incumbent's monopoly power.
Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken and the price of each bucket of chicken was $10. In 2005 the price per bucket of chicken was $20 and 25,000 buckets were produced. Determine the GDP price..
Describe (in a sentence or two) the short run profit maximization condition when labour is the only variable input? What will happen to the labour demand if price of the output goes up?
Antitrust authorities at the Federal Trade Commission are reviewing you company' recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the same market will increase market power.
Ceteris paribus, coffee Brand X and coffee Brand A are substitutes in consumption. The price of coffee Brand X falls. a. What happens to the demand for coffee Brand A b. What happens to the demand for coffee Brand X
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