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Suppose that the market demand for mountain spring water is given as follows:
P = 1200 - Q
Mountain spring water can be produced at no cost.
What will be the level of output and price in the long run if this industry were perfectly competitive?
When factors of production are combined to produce a particular level of output, what would be the effect on total product when all factors are kept fixed and only one factor is varied
Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor, Friday, is a fisherman, and he is willing to trade 2 fish for every 1 coconut that you are willing to give him. Another neighbor, Kwame, is also a fisherman, a..
Illustrate what happens to the dollar price of the dinar. Does the dinar appreciate or depreciate relative to the dollar.
Work out the effects of the following changes on 1. International price of bananas 2. Output of both goods in both countries.(Show the changes in world relative supply and demand curves and the PPF of each country).
(a) Indicate whether this production function exhibits constant, increasing, or decreasing returns to scale. (b) Does the production function exhibit diminishing returns If so, when does the law of diminishing returns begin to operate.
The U.S. government spends over $15.8 billion on its Food Stamp Program to provide millions of Americans with the means to purchase food.
Use a production possibility frontier to illustrate the probable results of your fiscal policy. By how much did consumption change? By how much did savings change?
Is there a significant difference in quality and acess between for-profit and not-for-profit hospitals? What is the empirical evidence? (Clearly distinguish between private not-for-profit hospitals ad public hospitals).
The kinked demand curve in an oligopolistic market is defined by the equations: P = 140 - 0.5Q, and P = 200 - 2Q. a) Derive equations for the marginal revenue curves. b) Determine the price and quantity at the "kink" of the demand curve.
What does the Fisher Effect say about the relationship between the nominal interest rate (e.g., the federal funds rate) and the inflation rate?
What is the "current macroeconomic situation" in the U.S. (e.g. is the U.S. economy currently concerned about unemployment, inflation, recession, etc.) What fiscal policies and monetary policies would be appropriate at this time
Define inflation, discuss its causes, distinguish between anticipated and unanticipated inflation, and discuss the harmful effects of both on economic activity.
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