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Giving in to pressure from voters who claim that local theatre owners are gouging their customers with ticket prices as high as $10 per movie, the city council of a local municipality imposes a price ceiling of $2 on all movies. What effect is this likely to have on the market for movies in this particular city? What will happen to the quantity of tickets demanded? What will happen to the quantity supplied? Who gains? Who loses?
Consider a business cycle theory that combines the classical IS-LM model with the assumption that temporary changes in government purchases are the main source of cyclical fluctuations. How well would this theory explain the observed cyclical beha..
What effect will each of the changes listed in Study Question 3 of Chapter 27 have on the equilibrium level of GDP in the private closed economy? Explain your answers.
Show that an increase in g (at any t) increases wages. Derive the implications of changes in g on the returns to human capital. Contrast an increase in the returns to human capital driven by an increase in g with those discussed in Chapter 15.
If the local government can enforce a rent-control law that sets the maximum monthly rent at $1000, will there be a surplus or a shortage? Of how many units? Explain how the market can adjust?
Each acre can support 10 banana trees. However the 3 acres differ in their ability to support mango trees. She can grow 30 mango trees on the best land, 20 mango trees on the good land, and 10 mango trees on the bad land.
What items does the regular reviewer examine? The independent reviewer?
There are only two firms in the widget industry. The total demand for widgets is Q = 30 - 2P. The two firms have identical cost functions, TC = 3 + 10Q. The two firms act as though they were a monopoly. At what price and quantity will this cartel ..
Assets Liabilities Deposits at The Fed $40,000 Checkable Deposits $500,000 Cash $10,000 Net Worth /Capital $20,000 Loans $300,000 Securities $150,000 Fed Stock $20,000 1. What is the reserved ratio
Describe the various techniques of analysis used by the agency in their decision making process. For example, what different analysis approaches could be used?
Plans to curtail use of plastic bags, but not much action Last summer, Seattle approved a 20-cents charge on plastic shopping bags, which was intended to reduce pollution by encouraging reusable bags.
Use math or figures to explain why a shopper's average costs are lower when buying at a single supermarket than from many stores. (Hint: Define the goods as the items purchased and brought home.)
adding a turning lane to a busy intersection will cost 2 million dollars, but it is estimated that it will save motorists a total of 300000 dollars a year for the next 10 years. a government agency wants to know if the annual benefits outweight ..
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